Slides
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FY2025 3rd Quarter Financial Results Overview February 4, 2026
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Asset quality 15 Securities 16 Funding 17 Investments & funding structure / Impact of higher yen interest rates (non-consolidated) 18 Capital adequacy ratio 19 Reference: Capital adequacy ratio (as of September 30, 2025) 19 Group companies 20 Group companies / consolidated, non-consolidated difference 20 Financial highlights 2 P/L 3 P/L summary (1) (2) 3 Results by business segment —Strategic Investments Unit— —Market & International Business Unit— —Customer Relations Unit— —GMO Aozora Net Bank— 5 Net interest income 10 Non-interest income / Gains/losses on stock transactions / Gains/losses on equity method investments 11 Balance sheet 12 Balance sheet summary 12 Loans —Domestic— 13 Loans —Overseas— 14 Contents -------------------------------------- ------------------------------------------------------------------- ----------------------------------------- ---------------------------- ------------------------------------------ ----------------------------------------------- --------- ----------------------------------- ---------------------------------------- ---------------------------------------- -------------------------------------------------------- --------------------- ----------------------------------------------------------- -------------------------------- --------------------- ---------------------------------------- --------------------------- Copyright © 2026 Aozora Bank, Ltd. (Note) “1Q” refers to the period from April to June, “2Q” refers to the period from July to September, “3Q” refers to the period from October to December, “4Q” refers to the period from January to March, “1H” and “interim” refer to the period from April to September, and “2H” refers to the period from October to March. ---------------------------------------------------- 1
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Financial highlights Copyright © 2026 Aozora Bank, Ltd. 3Q dividend Dividend per share The three growth drivers (Strategic Investments Business, alliance with Daiwa Securities Group, and GMO Aozora Net Bank) set out in the Mid-term Plan “Aozora 2027” were major contributors to net revenue. Non-interest income significantly increased primarily due to the strong M&A market, driven by LBO financing transactions and returns on fund investments * Business profit + Gains/losses on stock transactions, etc. (Gains/losses on stock transactions, etc. = Gains/losses on stock transacti ons + Gains/losses on equity derivatives, etc.) Strategic Investments Business • In addition to strong non-interest income, domestic net interest income also expanded due to growth in domestic earning assets, including corporate loans and LBO finance Alliance with Daiwa Securities Group • Business profit reached approximately 3.1 billion yen (contract basis) as of January 31, 2026 against the full-year plan of 3.3 billion yen, with the financing amount totaling approximately 210 billion yen • Sale of Daiwa’s fund wrap product launched last October exceeded 49 billion yen as of January 31, 2026, far surpassing the FY2025 full-year plan of 15 billion yen GMO Aozora Net Bank • Net income was 0.8 billion yen (including 0.6 billion yen recorded in 3Q) due to an increase in fee income as well as growth in net interest income from higher deposit balances 22 yen / share (+ 3 yen yoy) In light of the strong business results, we implemented loss cuts on a portion of our legacy securities, with a view to improving future profitability Profit attributable to owners of parent represented 99% of the full-year forecast, reflecting a reduced tax burden due to progress on the workout of U.S. office loans 21.8 billion yen 27.4 billion yen 73.0 billion yen Net revenue 10.3 billion yen increase year-on-year Progress rate: 77 % Business-related profit* Profit attributable to owners of parent 6.4 billion yen increase year-on-year Progress rate: 78 % 5.5 billion yen increase year-on-year Progress rate: 99 % 1Q 2Q 3Q 4Q forecast Full-year forecast FY2025 22 yen 22 yen 22 yen 22 yen 88 yen 2
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FY2024 (billion yen) Net revenue 62.7 73.0 +10.3 95.0 76.9% Net interest income 36.5 37.2 +0.7 Non-interest income 26.2 35.7 +9.5 General & administrative expenses -46.1 -48.4 -2.2 1.3 1.9 +0.5 Business profit 17.9 26.5 +8.6 32.0 83.0% Credit-related expenses -7.3 -3.9 +3.3 Gains/losses on stock transactions 3.0 1.1 -1.9 Ordinary profit 13.2 23.6 +10.3 30.0 78.9% Extraordinary profit/loss 3.1 -0.0 -3.1 Profit before income taxes 16.4 23.6 +7.2 Taxes -0.6 -1.3 -0.7 0.4 -0.4 -0.9 16.2 21.8 +5.5 22.0 99.2% <Reference> Plan Business-related profit 21.0 27.4 +6.4 35.0 78.4% Profit attributable to owners of parent Progress 1-3Q A 1-3Q B Change B - A Profit/loss attributable to non-controlling interests FY2025 Forecast FY2025 Gains/losses on equity method investments 21.8 20.5 33.0 4.9% 6.3% 7% (approx.) -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 0 10 20 30 40 50 FY2024 FY2025 1-3Q FY2027 Plan ROE P/L * Profit attributable to owners of parent and ROE 1 3 4 5 Net revenue progressed strongly, driven by continued growth in domestic net interest income as well as in non-interest income ⁃ Strategic Investments Business maintained strong performance ⁃ We implemented loss cuts on a portion of our legacy securities G&A expenses were managed within budget (66 billion yen for FY2025) while we remained focused on investments in human capital As a result of the above, business profit and business-related profit both progressed strongly A reversal of provision for credit losses was recorded in 3Q as a result of the recovery of U.S. office loans Profit attributable to owners of parent increased 34% year-on-year. The progress in the workout of U.S. office loans resulted in a reduction in the tax burden 3 1 2 4 * Annualized basis 2 P/L summary (1) (forecast) 22.0 Copyright © 2026 Aozora Bank, Ltd. 3 5 Profit attributable to owners of parent (billion yen) 3
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(billion yen) P/L summary (2) Major factors for changes in profit attributable to owners of parent (FY2024 1–3Q vs FY2025 1–3Q) P/L FY2024 1–3Q FY2025 1–3Q Strategic Investments Unit* 1 GMO Aozora Net Bank Credit- related expenses Other Absence of one-time gain from the liquidation of an overseas subsidiary Market & International Business Unit, Customer Relations Unit* 1, etc. Business-related profit Business-related profit by segment* 2 *1 The Bank’s business groups were reorganized into the following three units from FY2025: “Strategic Investments Unit,” “Market & International Business Unit,” and “Customer Relations Unit.” *2 Management accounting basis. “Other” includes (i) business-related profit not included in the business units (e.g. G&A expenses not allocated to each unit, gains/losses on th e sale of equities not included in any units), (ii) gains on the sale of equities held solely for investment purposes, and (iii) revenue adjustment related to funding contribution. +4.4 billion yen mainly in LBO finance 16.2 -2.3 +6.7 -1.7 +1.4 -1.8 21.8 +3.3 Copyright © 2026 Aozora Bank, Ltd. (billion yen) 21.2 28.0 +6.7 26.7 105% 6.1 4.5 -1.5 10.6 43% 1.2 1.2 -0.0 0.3 390% -0.5 0.8 +1.4 Other -7.1 -7.3 -0.1 Total 21.0 27.4 +6.4 35.0 79% Change B - A FY2025 FY2025 Plan Progress 1-3Q B Strategic Investments Unit Market & International Business Unit Customer Relations Unit GMO Aozora Net Bank FY2024 1-3Q A 4
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LBO finance 35% Domestic corporate business (incl. venture debt) 29% Business recovery finance 15% Domestic real estate finance 13% Other (Environmental finance, M&A business) 7% -16.1 -16.8 1.0 1.0 20.7 27.3 15.7 16.5 -17 -7 3 13 23 33 43 44.1 billion yen (+7.4 billion yen *4) Copyright © 2026 Aozora Bank, Ltd. (billion yen) Business-related profit P/L Net revenue by business* 3 Business-related profit exceeded the full-year plan Domestic corporate business and LBO finance, focus areas of our Strategic Investments Business, were major contributors Non-interest income performed strongly, mainly driven by loan-related fee income from LBO financing transactions, gains from limited partnerships due to exit transactions associated with fund investments, and the sale of derivatives in response to customer demand Results by business segment *1 —Strategic Investments Unit— FY2025 plan: 26.7 bn yen (progress rate: 105%) *1 Management accounting basis *2 “Other” includes “Gains/losses on stock transactions, etc.” and “Amount of revenue commensurate with the degree of contribution related to funding activity.” Starting from FY2025, the amount of revenue commensurate with the degree of contribution r elated to funding activity, which is a growth base in “Aozora 2027,” was included in net revenue of each unit. (Results for FY2024 have been revised retrospectively.) *3 Based on the net revenue for each business group *4 Year-on-year comparison Areas of collaboration with Daiwa Securities Group LBO finance Environmental finance Domestic real estate finance Business recovery finance Domestic corporate business M&A / business succession advisory services Venture debt Equity investments with a primary focus on engagement Major businesses in the Strategic Investments Unit • Loan-related and M&A fee income • Gains/losses from limited partnerships • Revenue from the sale of derivatives • Interest on loans and discounts ■ Net interest income ■ G&A expenses ■ Other* 2 ■ Non-interest income FY2025 1–3Q FY2024 1–3Q 28.0 21.2 5
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988.2 1,068.0 1,170.2 66 bps 61 bps 59 bps End-Mar. 2024 End-Mar. 2025 End-Dec 2025 Loan outstandings Loan spread -6.3 -7.1 0.7 1.1 5.8 7.4 5.1 5.2 -8 -3 2 7 12 -1.9 -2.1 0.0 0.0 5.5 8.7 5.5 6.9 -5 0 5 10 15 6.7 5.4 13.5 9.1 Copyright © 2026 Aozora Bank, Ltd. P/L Acquisition & Structured Finance Group (LBO finance) Corporate Business Group (domestic corporate business, venture debt, equity investments with a primary focus on engagement) Loan outstandings and spread* 3Loan outstandings and spread* 3 Results by business segment *1 —Strategic Investments Unit— *1 Management accounting basis *2 “Other” includes “Gains/losses on equity method investments,” “Gains/losses on stock transactions, etc.,” and “Amount of revenue commensurate with the degree of contribution related to funding activity.” Starting from FY2025, the amount of revenue commensurate with the degree of contribution relate d to funding activity, which is a growth base in “Aozora 2027,” was included in net revenue of each unit. (Results for FY2024 have been re vised retrospectively.) *3 Loan outstandings and spread for each business group (excl . NPLs) (billion yen) (billion yen) (billion yen) (billion yen) Business-related profit, etc. in major business groups ■ Net interest income ■ Non-interest income ■ Other* 2 ■ G&A expenses ■ Net interest income ■ Non-interest income ■ Other* 2 ■ G&A expenses FY2025 1–3Q FY2024 1–3Q FY2025 1–3Q FY2024 1–3Q 6 300.7 319.0 447.3 245 bps 247 bps 233 bps End-Mar. 2024 End-Mar. 2025 End-Dec 2025 Loan outstandings Loan spread
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-3.1 -3.1 -5.8 -5.4 -0.0 -0.0 1.3 1.9 -4.8 -5.5 2.2 1.0 5.2 6.5 9.6 8.7 -10 -5 0 5 10 15 -10.8 -10.4 1.3 1.8 -2.0 -3.7 17.7 16.9 -18 -13 -8 -3 2 7 12 17 22 Copyright © 2026 Aozora Bank, Ltd. P/L Financial Markets Group (ALM & securities) International Business Group (overseas corporate loans) Results by business segment *1 —Market & International Business Unit— FY2025 plan: 10.6 bn yen (progress rate: 43%) *1 Management accounting basis *2 “Other” includes “Gains/losses on equity method investments,” “Gains/losses on stock transactions, etc.,” and “Amount of revenue commensurate with the degree of contribution related to funding activity.” Starting from FY2025, the amount of revenue commensurate with the degree of contribution relate d to funding activity, which is a growth base in “Aozora 2027,” was included in net revenue of each unit. (Results for FY2024 have been re vised retrospectively.) ALM & securities Overseas corporate loans Overseas real estate non-recourse loans Major businesses in the Market & International Business Unit (billion yen) (billion yen) Business-related profit in major business groups ■ Net interest income ■ Non-interest income ■ Other* 2 ■ G&A expenses FY2025 1–3Q FY2024 1–3Q FY2025 1–3Q FY2024 1–3Q FY2025 1–3Q FY2024 1–3Q -2.6 -2.1 7.4 6.3 6.1 4.5 Business-related profit (billion yen) The Financial Markets Group took actions designed to improve future profitability We implemented portfolio position adjustments, including the disposal of legacy securities (credit ETFs) and other assets 7
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-7.5 -7.2 2.7 2.7 5.2 5.2 0.7 0.6 -10 -8 -6 -4 -2 0 2 4 6 8 10 -2.6 -2.8 -4.9 -4.4 1.5 1.5 1.2 1.1 1.8 1.8 3.3 3.3 0.7 0.6 -0.0 0.0 -8 -6 -4 -2 0 2 4 6 8 1.5 1.1 -0.2 0.0 1.2 1.2 Copyright © 2026 Aozora Bank, Ltd. P/L Sale of Daiwa’s fund wrap product to retail customers launched in alliance with Daiwa Securities Group to expand AUM The sales amount has exceeded 49 billion yen as of January 31, 2026, well above the FY2025 plan of 15 billion yen Allied Banking Group (financial institutions business) Retail Banking Group (retail banking business) Results by business segment *1 —Customer Relations Unit— FY2025 plan: 0.3 bn yen (progress rate: 390%) *1 Management accounting basis *2 “Other” includes “Gains/losses on equity method investments,” “Gains/losses on stock transactions, etc.,” and “Amount of revenue commensurate with the degree of contribution related to funding activity.” Starting from FY2025, the amount of revenue commensurate with the degree of contribution relate d to funding activity, which is a growth base in “Aozora 2027,” was included in net revenue of each unit. (Results for FY2024 have been re vised retrospectively.) Financial institutions business (financial institution network, asset securitization business) Retail banking business (deposits, wealth management business) Major businesses in the Customer Relations Unit (billion yen) (billion yen) Business-related profit in business groups FY2025 1–3Q FY2024 1–3Q FY2025 1–3Q FY2024 1–3Q FY2025 1–3Q FY2024 1–3Q Business-related profit (billion yen) ■ Net interest income ■ Non-interest income ■ Other* 2 ■ G&A expenses 8
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-7.0 -8.7 5.0 6.5 1.4 2.9 -10.5 -5.5 -0.5 4.5 9.5 2.3 3.9 6.8 10.1 3.2 5.7 9.8 0.0 2.0 4.0 6.0 8.0 10.0 FY2022 FY2023 FY2024 FY2025 1-3Q 454 629 827 1,010 - 200 400 600 800 1,000 End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 0.0 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 FY2022 FY2023 FY2024 FY2025 1-3Q 77k 125k 184k 229k 413.4 615.9 946.7 1,236.6 -150 50 250 450 650 850 1,050 1,250 1,450 0 5 10 15 20 25 30 35 End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 Number of corporate accounts Deposit balances (billion yen) Business profit -3.8 -2.7 0.3 1.5 Net income -4.1 -3.7 -1.8 0.8 -0.5 0.8 (billion yen) Copyright © 2026 Aozora Bank, Ltd. P/L Number of corporate accounts and deposit balances Total number of “BaaS byGMO Aozora” contracts Net revenue* 2 1–3Q Number of transfer transactions Results by business segment —GMO Aozora Net Bank— The number of corporate accounts and deposit balances, the foundation of revenue growth, continued to expand, accelerating quarterly net income growth compared to the interim period *1 Management accounting basis *2 GMO Aozora Net Bank’s non-consolidated results A standalone service that offers GMO Aozora Net Bank’s banking functions to financial and non-financial companies, allowing them to promote operational efficiency and create financial serv ices FY2025 1–3Q FY2024 1–3Q Business-related profit* 1 (billion yen) 1–3Q •Fee income (mainly from remittances and debit cards) ■ Net interest income ■ Non-interest income ■ G&A expenses 0.6 billion yen in 3Q 9
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FY2024 (billion yen) Net interest income 36.5 37.2 +0.7 Domestic 17.7 25.0 +7.2 Overseas 18.7 12.2 -6.5 Interest income 122.3 119.1 -3.1 Incl. interest on loans and discounts 98.2 89.2 -8.9 Incl. interest and dividends on securities 16.2 19.4 +3.1 Interest expenses -85.7 -81.8 +3.9 Incl. interest on deposits and NCDs -10.4 -21.7 -11.3 Incl. repurchase interest, etc. -12.8 -12.4 +0.3 Incl. interest on swaps -55.9 -39.2 +16.6 Change B - A 1-3Q A 1-3Q B FY2025 0.91% 1.08% 0.97% 1.39% 1.48% 1.29% 0.05% 0.09% 0.30% 0% 1% 2% FY2023 FY2024 FY2025 1-3Q Net interest margin Lending margin Securities margin 0.76% 0.92% 1.00% 0.90% 1.14% 1.44% 0.14% 0.22% 0.44% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% FY2023 FY2024 FY2025 1-3Q Differences in yields between domestic loans and deposits Yield on loans Yield on deposits Domestic net interest income maintained a strong upward trend, driven by higher yen interest rates and an increase in domestic loan outstandings Overseas net interest income declined year-on-year due to a decrease in loans as well as narrower overall spreads, but nearly hit the bottom Differences in yields between domestic loans and deposits expanded Net interest income Net interest margin, lending margin and securities margin P/L 1 1 2 Differences in yields between domestic loans and deposits While overall net interest income only increased incrementally, domestic net interest income expanded significantly 3 Copyright © 2026 Aozora Bank, Ltd. 10 2 3
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Net other ordinary income 6.3 9.5 +3.1 2.9 -3.3 -6.2 8.3 12.6 +4.3 Real estate/ Distressed loan-related 4.2 7.3 +3.1 Buyout/venture-related 1.7 3.5 +1.7 Other 2.2 1.7 -0.5 3.0 1.1 -1.9 1.0 1.1 +0.0 1.3 1.9 +0.5 Incl. gains/losses on equity investments Gains/losses on equity method investments Gains/losses on stock transactions Incl. gains/losses on bond transactions Incl. gains/losses from limited partnerships Jan.-Sep. Jan.-Sep. （billion yen ） 11.5 15.5 +4.0 Change B - A 2025 B 2024 A Net profit FY2024 (billion yen) Non-interest income 26.2 35.7 +9.5 Net fees and commissions 18.3 23.5 +5.1 Incl. loan-related fee income 7.6 9.9 +2.3 Incl. GMO Aozora Net Bank fee income 4.7 6.5 +1.7 Incl. investment trust fee income 3.3 3.7 +0.4 Incl. M&A fee income 0.5 0.8 +0.2 Net trading revenues 1.4 2.7 +1.3 FY2025 1-3Q B Change B - A 1-3Q A 1 2 Non-interest income / Gains/losses on stock transactions / Gains/losses on equity method investments P/L —Orient Commercial Joint Stock Bank— Aozora’s equity method affiliate (Vietnam) * Loan-related fee income, mainly associated with LBO finance, and GMO Aozora Net Bank’s fee income both increased We realized losses on our securities portfolio in 3Q as a result of the disposition of legacy assets as well as position adjustments on other assets Non-interest income maintained a strong upward trend, mainly driven by net fees and commissions and gains from limited partnerships, more than offsetting losses on bond transactions 1 2 * From FY2024 4Q results, gains/losses from limited partne rships include part of the gains/losses recorded by Aozora Loan Services. <Reference> Equity investments* * Uses an exchange rate of 0.0057 yen per 1 Vietnamese d ong * (billion yen) * Management accounting and mark-to-market basis. Investment income includes gains/losses from limited partnerships, gains/losses on stock transactions, and interest and dividends on securities. Aozora’s FY2025 1–3Q results include 15% of OCB’s net profit (incl. goodwill amortization) recorded in Jan.-Sep. 2025. Copyright © 2026 Aozora Bank, Ltd. 94.5 75.2 72.9 78.5 65.7 70.6 76.1 74.2 42.3 42.8 44.4 43.1 19.2 26.4 31.7 38.7 33.6 35.7 33.9 42.8 36.3 43.9 36.5 38.6 291.8 294.9 295.6 316.1 End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 Other (incl. overseas debt funds) Domestic/overseas equity investments Venture funds Buyout funds Investment in business recovery claims Real estate-related equities 11
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0 1 1 2 2 End-Mar. 2025 End-Dec. 2025 End-Mar. 2028 plan 1.7 tn yen 1.7 tn yen 1.9 tn yen 0 1 1 2 2 3 3 4 End-Mar. 2025 End-Dec. 2025 End-Mar. 2028 plan 2.8 tn yen 3.0 tn yen 3.6 tn yen 4.4 tn yen +193.4 bn yen 1.4 tn yen 2.6 tn yen 6.5 tn yen 0.4 tn yen +52.1 bn yen +411.2 bn yen +312.4 bn yen +321.1 bn yen +23.4 bn yen Domestic 3.0 tn yen Overseas (overseas ratio) 1.3 tn yen (30%) Copyright © 2026 Aozora Bank, Ltd. Earning assets Domestic earning assets Overseas earning assets Approx. 250 bn yen increase from March 31, 2025, progressing in line with the Mid-term Plan “Aozora 2027” Decreased on a U.S. dollar basis, but remained flat due to the impact of a weaker yen “Aozora 2027” +656.9 bn yen Total assets: 8.4 trillion yen Vs. March 31, 2025 1.3 tn yen Deposit, etc.* * Incl. NCDs, borrowed money (excl. borrowings from the BOJ) , and bonds Balance sheet summary Balance Sheet Earning assets* Total of loans and securities (excl. loans to the government, government bonds, etc.) +191.4 bn yen +2.0 bn yen Other Net assets Loans Securities Other (current assets, etc.) Mar. 31, 2025 4.5 tn yen Dec. 31, 2025 4.7 tn yen Mar. 31, 2028 plan 5.5 tn yen * Management accounting basis 12
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Real estate 25% Government 15% Manufacturing 14% Financial and insurance 13% Other services 8% Leasing 7% Utilities (electricity, gas, heat supply and water) 5% Other 13% 1,021.2 1,105.6 1,201.0 1,356.1 463.1 448.7 433.1 446.9 219.8 303.2 306.2 406.8 390.2 379.3 532.7 460.2 415.7 361.1 431.0 425.4 2,510.1 2,598.1 2,904.2 3,095.6 - End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 Other Loans to the government LBO loans Real estate non- recourse loans Corporate loans 73 bps 83 bps 76 bps 83 bps 60 Loan spread Corporate loans increased by approximately 150 billion yen compared to March 31, 2025, with an expansion in our domestic customer base, due in part to the effect of our alliance with Daiwa Securities Group LBO loans increased by approximately 190 billion yen over the three years from March 31, 2023. The increase from March 31, 2025 was approximately 100 billion yen, resulting in a higher pace of increase partly because transaction sizes tended to be larger Loans —Domestic— 1 2 3,095.6 billion yen * (billion yen) Domestic loan outstandings and loan spread * Domestic loans by industry Balance Sheet 1 2 Domestic loan outstandings increased by approximately 190 billion yen compared to March 31, 2025, reaching the 3 trillion yen range for the first time in nearly 20 years * The loan spread is on non-consolidated and management accounting basis and does not include NPLs. Copyright © 2026 Aozora Bank, Ltd. 13
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5,224 4,820 4,472 4,444 2,813 2,589 2,043 1,490 2,230 2,316 2,192 2,396 10,268 9,726 8,709 8,331 - End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 Other (incl. MM CLO) Real estate non- recourse loans Corporate loans 152 bps 148 bps 133 bps 120 bps 110 Loan spread (A) 41% (B) 17% (C) 28% North America 86% Europe 11% Asia 2% Oceania 1% Other 0% 96.2 96.5 97.4 97.2 96.6 99.7 99.7 100.0 100.0 100.1 88 90 92 94 96 98 100 23/12 24/3 24/6 24/9 24/12 25/3 25/6 25/9 25/12 Market Index Aozora Overseas corporate loan outstandings remained flat with narrower overall spreads, while we continued flexible rebalancing and selective origination of loans under the policy of maintaining the credit quality of our loan portfolio Overseas real estate non-recourse loan outstandings were reduced by approximately 30% compared to March 31, 2025 as the workout and recovery of U.S. office loans continued to progress <Reference> Average bid price — North American corporate loans— Loans —Overseas— 1 2 Overseas loans by region 8,331 million dollars 1 2 Overseas loan outstandings and loan spread* * Source: PitchBook Data, Inc. * 1,371.1 1,473.1 1,302.2 1,304.3 35% 36% 31% 30% ¥133.54 ¥151.46 ¥149.53 ¥156.56 Foreign exchange rate (USD/JPY) Total yen-denominated loans (bn yen) Percentage of overseas loans Balance Sheet * (US$ million) (A) Corporate loans (B) Real estate non-recourse loans (C) Other (incl. MM CLO) * The loan spread is on non-consolidated and management accounting basis and does not include NPLs. The cost of forex forwards to which hedge accounting is not applied is included in funding costs. Copyright © 2026 Aozora Bank, Ltd. 14
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12.5 15.4 10.5 118.5 76.2 47.3 0.0 0.3 91.7 58.3 3.17% 2.14% 1.30% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 0 End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 108.1 44.1 66.2 131.1 (USD million) Balance Reserves Reserve ratio* Number of borrowers Balance Reserves Reserve ratio* Number of borrowers Balance Reserves Reserve ratio* Number of borrowers Balance Reserves Reserve ratio* Number of borrowers LTV: less than 90% 1,082 23 2.2% 24 762 16 2.2% 19 620 27 4.4% 15 676 36 5.3% 16 LTV: 90-100% 92 12 13.8% 2 232 31 13.5% 4 254 32 12.9% 5 60 9 15.3% 2 LTV: over 100% (NPLs) 719 320 44.5% 21 442 187 42.3% 14 313 134 42.8% 9 281 123 43.9% 8 Total 1,893 357 18.8% 47 1,437 235 16.3% 37 1,189 194 16.3% 29 1,018 169 16.6% 26 End-Dec. 2025 End-Sep. 2025 End-Mar. 2025 End-Dec. 2023 (billion yen) Asset quality U.S. office loans Non-performing loans based on the FRA* *1 Including specific loan loss reserves, write-off of loans, gains/losses on disposition of loans, and recoveries of written-off receivables *2 Including general loan loss reserves and reserve for credit losses on off-balance-sheet instruments Credit-related expenses NPL ratio Doubtful credit Bankrupt or similar credit Special attention credit * Financial Reconstruction Act U.S office loans * Total exposure basis Balance Sheet Loan workouts for NPLs progressed, and risk management is expected to normalize over the course of the next fiscal year In 3Q, a reversal of provision for credit losses was recorded in credit-related expenses, reflecting collection of the loans with an LTV of 90–100% Copyright © 2026 Aozora Bank, Ltd. (billion yen) Credit-related expenses -7.3 -1.1 -4.8 2.0 -3.9 +3.3 Specific loan loss reserves, etc. *1 -5.2 -6.0 -2.6 -2.0 -10.7 -5.5 General loan loss reserves, etc. *2 -2.1 4.8 -2.2 4.1 6.7 +8.8 <Reference> U.S. office loans -2.0 -1.1 -3.1 1.1 -3.1 -1.0 Other than U.S. office loans -5.3 -0.0 -1.7 0.8 -0.8 +4.4 Change B - A FY2025 FY2024 1-3Q A 1-3Q B1Q 2Q 3Q 15
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Non-legacy assets 757.6 940.5 983.8 13.5 5.8 20.5 Domestic bonds 189.1 265.4 268.0 -2.7 -5.9 -7.7 Equities 31.1 29.9 36.7 14.7 12.5 19.8 Foreign bonds 196.5 281.4 312.0 -1.7 -1.2 1.7 Other 340.7 363.7 367.0 3.3 0.4 6.7 Legacy assets 428.9 414.8 423.7 -64.7 -56.6 -53.4 Bear funds 71.5 65.9 61.1 U.S. govt. bonds (USD) 1,150 1,150 1,150 -11.0 -9.5 -7.9 European govt. bonds (EUR) 350 315 315 -9.1 -6.4 -5.6 MBS (USD) 823 767 725 -30.7 -27.2 -27.1 Credit ETFs (investment grade bonds) (USD) 465 465 393 -13.6 -13.4 -12.7 Total -51.1 -50.7 -32.9 Unrealized gains/losses (billion yen) End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 Book value (billion yen) Book value (million in original currency) Unrealized gains/losses (billion yen) Book value (billion yen) Unrealized gains/losses (billion yen) Market risk (10 BPV) (billion yen) ALM securities operations +0.0 -1.0 -1.7 Incl. yen interest rate risk +0.0 -0.5 -0.6 Incl. U.S. dollar interest rate risk +0.0 -0.6 -0.9 End-Mar. 2024 End-Mar. 2025 End-Dec. 2025 Duration of bonds JGBs 7 years 7 years 9 years Municipal bonds 4 years 5 years 6 years U.S. govt. bonds 5 years 4 years 4 years MBS 7 years 8 years 8 years End-Dec. 2025 End-Mar. 2024 End-Mar. 2025 Securities Balance Sheet *1 Unrealized gains/losses including hedging instruments (de rivatives, bear funds) *2 Face or book value basis, excluding hedging instruments * * * Non-consolidated basis *1 *2 *1 We disposed of credit ETFs with high credit quality, given that they were securities with no maturity dates unlike other legacy assets 1 1 Copyright © 2026 Aozora Bank, Ltd. (billion yen) JGBs 52.5 128.5 131.1 +2.6 -2.1 -4.8 -6.5 -1.7 Municipal bonds 29.0 33.7 36.9 +3.2 -0.2 -0.7 -1.0 -0.2 107.5 103.1 99.9 -3.2 -0.4 -1.1 -1.2 -0.1 Equities 31.1 29.9 36.7 +6.8 14.7 12.5 19.8 +7.2 Foreign bonds 493.9 570.9 621.7 +50.8 -60.6 -49.6 -40.3 +9.2 Foreign govt. bonds 262.6 347.3 400.7 +53.4 -32.1 -24.6 -18.7 +5.8 MBS 99.2 91.7 92.4 +0.7 -28.6 -26.0 -24.0 +2.0 Other 132.0 131.9 128.5 -3.3 0.1 1.0 2.4 +1.3 Other securities 472.3 489.0 481.0 -8.0 -10.0 -10.7 -5.2 +5.5 ETFs 59.9 64.9 61.7 -3.1 -10.4 -10.5 -7.9 +2.5 Investments in limited partnerships 181.4 183.0 198.7 +15.6 1.0 2.0 1.5 -0.5 REITs 35.1 33.0 31.1 -1.9 3.5 2.6 2.6 +0.0 Investment trusts 153.9 162.5 143.4 -19.1 -4.7 -5.1 -1.5 +3.6 Other 41.7 45.4 46.0 +0.5 0.5 0.1 -0.0 -0.1 Total 1,186.5 1,355.4 1,407.6 +52.1 -58.7 -54.5 -34.6 +19.8 USD/JPY 151.46 149.53 156.56 7.03 -51.1 -50.7 -32.9 +17.8 Unrealized gains/losses, incl. unrealized gains/losses on hedging instruments Corporate bonds / short-term corporate bonds Change B - A End-Mar. 2025 C End-Mar. 2025 A Book value End-Mar. 2024 End-Dec. 2025 B Unrealized gains/losses End-Dec. 2025 D Change D - C End-Mar. 2024 16 Legacy / non-legacy assets *1
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(billion yen) 6,421.0 6,276.1 6,588.5 +312.4 Deposits / NCDs 5,776.3 5,672.9 5,989.4 +316.5 Borrowed money 463.3 478.6 479.5 +0.9 Bonds 181.3 124.6 119.5 -5.0 5,808.9 5,331.8 5,353.7 +21.9 Retail deposits (B) 3,560.8 3,181.7 3,051.8 -129.9 2,066.7 2,025.4 2,182.3 +156.9 Bonds 181.3 124.6 119.5 -5.0 61% 60% 57% 66% 72% 75% Change B - A End-Mar. 2024 End-Dec. 2025 B Funding (consolidated basis) Funding (excl. GMO Aozora Net Bank) (A) End-Mar. 2025 A Corporate deposits Retail funding ratio (B) / (A) Loan-to-deposit ratio BANK ™ 45% Traditional branches 12% Retail (BANK ™ / Traditional branches) 57% Financial institutions 26% Corporates / Public institutions 17% By customer segment (excl. GMO Aozora Net Bank)* 2 BANK TM deposit breakdown Copyright © 2026 Aozora Bank, Ltd. 1 *1 *2 2*3 Funding Balance Sheet *1 Excluding borrowings from the BOJ *2 Management accounting basis *3 Including NCDs and borrowed money, and excluding borr owings from the BOJ Retail deposits declined compared to March 31, 2025, but are now recovering as we have recently raised our deposit rates in light of the BOJ’s policy rate increase Corporate deposits were flexibly managed from the perspective of overall funding positions (balance between target funding levels and associated costs). We remain focused on gaining new customers 1 2 Funding continued to be managed in a flexible and balanced manner in response to asset growth Liquid deposits 75.1% 57.9% 59.2% +1.3% Time deposits 24.9% 42.1% 40.8% -1.3% End-Dec. 2025 B End-Mar. 2025 A Change B - A End-Mar. 2024 17
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714.5 1,948.8 3,233.1 Time deposits Liquid deposits Other 1,783.3 760.7 578.2 2,774.2 BOJ current account Securities Other Loans 810 5,201 8,041 180 2,943 2,740 6,941 1,248 Loans Securities Other Bonds and deposits Medium- to long-term funding Market operations Short-term funding Other Yen currency balance sheet Investments 5,896.4 Funding 5,896.4 (billion yen) Foreign currency balance sheet (USD million) Investments 14,051 Funding 14,051 Estimated impact of higher yen interest rates on annual net interest income ➡ +2.7 billion yen Estimate assumptions: • An interest rate increase of 0.25% for all terms • No change in the balance sheet from December 31, 2025 • Pass-through to interest rates on deposits: 75% Copyright © 2026 Aozora Bank, Ltd. Investments & funding structure / Impact of higher yen interest rates * (non-consolidated) Balance Sheet * Management accounting basis •Repo •Interbank •TRS •Currency swap •Long-term forex forward ■ Medium- to long-term funding: ■ Short-term funding: ■ Market operations: •Forex forward Retail: 90% Corporate: 10% Retail: 40% Corporate: 60% Floating: 75% Fixed: 25% 18
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9.23% 10.72% 10.44% 3.00% 5.00% 7.00% 9.00% 11.00% 13.00% 4,645.6 4,553.8 4,672.1 429.0 488.2 487.8 0.0 5,000.0 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Risk-weighted assets Regulatory capital Domestic standard (billion yen) Capital adequacy ratio CET1 ratio (Common Equity Tier 1 ratio) Capital adequacy ratio Aozora Bank is a domestic standard bank (minimum required capital adequacy ratio: 4%) subject to relevant regulations. However, we operate with the CET1 ratio (international standard) in mind as a means to pursue higher levels of risk and capital management, mainly in light of our significant overseas loan exposure. Copyright © 2026 Aozora Bank, Ltd. (billion yen) Capital adequacy ratio 9.23% 10.72% 10.44% -0.28% Regulatory capital (A) - (B) 429.0 488.2 487.8 -0.4 Instruments and reserves (A) 467.5 529.7 530.7 +1.0 Shareholders' equity 413.1 475.1 482.6 +7.5 Other 54.4 54.5 48.1 -6.4 Regulatory adjustment (B) 38.5 41.4 42.9 +1.5 Risk-weighted assets 4,645.6 4,553.8 4,672.1 +118.3 Credit risk assets 4,273.1 4,248.9 4,361.8 +112.9 Market risk 238.9 177.6 169.5 -8.1 Operational risk 133.4 127.2 140.7 +13.5 End-Mar. 2024 End-Mar. 2025 A Change B - A End-Sep. 2025 B 7.1% 8.7% 8.9% 8% or higher 0 0 0 0 0 0 0 0 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 FY2027 Plan Reference: Capital adequacy ratio (as of September 30, 2025) The capital adequacy ratio and the CET1 ratio as of December 31, 2025 will be announced in mid-February 2026 (no significant changes are expected from September 30, 2025) 19
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(billion yen) A: Non-consolidated net income 21.5 B: Profit attributable to owners of parent 21.8 B - A (a + b) Difference 0.3 Breakdown of the difference a: Consolidated subsidiaries/equity-method affiliates 3.0 Share of Earnings *1 Net Revenue Net Income GMO Aozora Net Bank, Ltd. 50.0% *2 10.1 0.8 Aozora Loan Services Co., Ltd. 67.6% 3.1 0.0 Aozora Securities Co., Ltd. 100.0% 0.1 -0.5 Aozora Regional Consulting Co., Ltd. 100.0% 0.0 0.0 Aozora Investment Management Co., Ltd. 100.0% 1.7 0.6 Aozora Real Estate Investment Advisors Co., Ltd. 100.0% 0.0 0.0 ABN Advisors Co., Ltd. 100.0% 0.1 -0.0 Aozora Corporate Investment Co., Ltd. 100.0% 0.5 0.2 Aozora Europe Limited 100.0% 0.6 0.1 Aozora North America, Inc. 100.0% 3.4 1.7 Other - -0.0 -2.0 Orient Commercial Joint Stock Bank 15.0% - 1.9 *3 b: Consolidation adjustments -2.7 - -0.4 Other - -2.3 *4 *1 Percentage of profit and loss attributable to owners of parent *2 Voting rights ratio is 85.1%. *3 Revenue contribution from equity method investments *4 Including a consolidation adjustment associated with dividends received from group companies Profit/loss attributable to non-controlling interests (GMO Aozora Net Bank, Ltd.) Copyright © 2026 Aozora Bank, Ltd. Group companies / consolidated, non-consolidated difference Group companies 20
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Copyright © 2026 Aozora Bank, Ltd. AOZORA BANK, LTD. Corporate Communication Division TEL: 03-6752-1218 Mail: azbk001@aozorabank.co.jp URL: https://www.aozorabank.co.jp Contact This presentation contains forward-looking statements regarding the Bank’s financial condition and results of operations. These forward-looking statements, which include the Bank’s views and assumptions with respect to future events, invol ve certain risks and uncertainties. Actual results may differ from forecasts due to changes in economic conditions and o ther factors including the effects of changes in general economi c conditions, changes in interest rates, stock markets and fore ign currency, and any ensuing decline in the value of ou r securities portfolio, incurrence of significant credit-related cost and the effectiveness of our operational, legal and other risk management policies 21