Norinchukin Bank CEO to Resign Over Foreign Bond Losses
Norinchukin Bank CEO Kazuto Oku is reportedly planning to resign over the bank's substantial losses incurred from misjudged foreign bond investments.
Sources familiar with the situation indicate that Oku will step down at the end of March. Taro Kitabayashi, the bank's Managing Executive Officer and CFO, will be nominated as Oku's replacement, effective April 1.
Nikkei initially reported on Oku's resignation. A Norinchukin spokesperson declined to confirm the news, stating that no decisions have been made.
In recent months, Norinchukin has experienced amplified losses due to increased investments in riskier leveraged loans and the search for additional capital. During the first nine months of its fiscal year ending March, the bank incurred losses of ¥1.4 trillion ($9.2 billion), nearing its previously projected annual loss of ¥1.5 trillion.
Financial results also indicate that Norinchukin's paper losses on bond holdings amounted to ¥1.57 trillion, compared to ¥1.5 trillion three months prior.