Message from the President

Japan's economy has recovered from the supply chain interruption and cautious consumer sentiment following the March 11 Earthquake. While Japan's economy is moving into positive territory, deceleration overseas has led to soaring yen valuations in the currency markets, which has had a dramatic effect on our export companies. This further clouds an already uncertain picture of the future.

Under the direction of our "New Horizon 2nd Stage" management plan, we have focused our efforts and resources on our regional retail business, doing all we can build a stronger business base and increase earnings. We must build more BOY fans—customers who will work closely with us over the long term. This is why we continue to create and offer new products and services, placing top priority on finding the true needs of our customers.

We are working to offer the highest-value financial services to our personal banking customers that meet a diverse range of asset management needs. In 2011 we began renovation work at our Tamagawa, Mizonokuchi, and Kamakura branches. We placed subsidiary Hamagin Tokai Tokyo Securities.,Ltd. consulting desks in each of these locations as one way to offer even more convenience to our customers. We have also installed quick service counters, and upgraded our ATM, Internet banking, and other bank functions.

At the same time, we are actively providing financing to corporate customers in the medical, nursing care, environment, and other growth industries in regions where these types of businesses are moving the fastest. Beyond bank financing, we established the Industry growth fund in August 2011 in partnership with subsidiary Yokohama Capital., Ltd. to offer equity funding. For those companies expanding overseas--particularly in Asia--we offer a network utilizing our Shanghai branch and other local banks to support local financing and information resources.

Kanagawa Prefecture and southeast Tokyo are the center of Bank of Yokohama operations. As the population increases and more companies locate here, the stage is set for high activity, leading us to expect further development and growth in this region.

For us to continue to be a financial institution that offers the greatest service to our customers, our shareholders, our employees, and to the local communities, both staff and management are committed to work even harder, contributing to greater growth in the communities we serve.

We ask for your continued faithful support. Thank you.