Stable earnings and reduced risky assets Enhanced financing stability in tandem with a rise in the ratio of financing from retail deposits Relatively strong capitalization for its rating Weaker business franchise and earnings base compared with Japanese major banks Although Aozora Bank Ltd. (BBB+/Stable/A-2) posted net losses in fiscal 2008 (ended March 31, 2009), mainly due to losses on its overseas investments and higher credit costs, the bank has maintained stable profits since fiscal 2009 (ended March 31, 2010). It has achieved this through disposal of risky assets and loss realization. In addition, as of Sept. 30, 2010, the ratio of financing from retail deposits rose to 60%, lifted by an enhanced individual deposit base, which Standard&Poor's Ratings
