Message from the President

First of all, I would like to express our deep appreciation for your continued patronage and support of the Bank of Yokohama.

Encouraging Signs in the Kanagawa Economy

High economic growth rates in emerging economies, especially China and India, are helping to underpin a gradual recovery trend in the world economy. In the Japanese economy, exports are growing, and there are indications that the downward trend in capital investment has halted. Although the continuing seriousness of the employment situation is reflected in a high unemployment rate and other indicators, government policies are helping to drive a rally in consumer spending, and the economy can therefore be expected to follow a gradual recovery trend. Economic indicators for Kanagawa Prefecture are also starting to show positive trends, including a recovery in export industries.

Launch of the New Medium-Term Management Plan

In April 2010, we launched our new medium-term management plan, “New Horizon 2nd Stage.”

Under our previous medium-term management plan, which we launched in April 2007, we focused on the realization of our long-term vision of becoming an attractive financial institution for customers, shareholders, employees and communities. While this plan was in progress, however, the external environment was radically changed by the global financial crisis. These changes are reflected in our new medium-term management plan, which we have positioned as a three-year period for the building of a solid business foundation that prepares us for the future and the establishment of a strong management foundation that can endure any environmental change.

We have identified three main themes for the new medium-term management plan: 1) improvement of corporate value by developing the “Yokohama Brand,” 2) intensification of low-cost operation, and 3) improvement of performance by reinforcing investment in human assets.

Our goals under the plan are to provide high-value financial services for customers, to establish easy-to-use service channels for customers, and to enhance the stability and safety of our operations to ensure customers’ peace of mind.

Also, in January 2010, we transitioned smoothly to the “MEJAR” shared use system developed jointly with The Hokuriku Bank, Ltd. and The Hokkaido Bank, Ltd., which are members of the Hokuhoku Financial Group. With the new system, we will offer new products and services in a timely manner, which will benefit our customers through improved convenience. We will work through these initiatives to expand our regional retail business and realize our long-term vision.

Counting Down to Our 90th Anniversary

On December 16, 2010, we will celebrate an important milestone, the 90th anniversary of the Bank’s founding. I would like to express our sincere gratitude for the past support of our shareholders, customers and business partners. We have survived many difficult times during this long history, and our entire organization is united in our determination to use that experience to achieve the targets set down in our new medium-term management plan, and to contribute to further prosperity in our region.

We look forward to your continuing support in the future.