(Bloomberg) -- Norinchukin Bank isn’t ruling out further gyrations to its soured bond investments after the firm earlier this week warned losses may swell to 1.5 trillion yen ($9.5 billion), triple an estimate made about a month ago.

Asked whether the bank’s expected losses may exceed that number, CEO Kazuto Oku said “it depends on the financial environment,” in comments to reporters after the bank’s annual general meeting. 

Shareholders at the AGM in Tokyo’s main business district approved all the bank’s resolutions, including the reappointment of management. 

“I apologized to members for the trouble and concern we have caused,” Oku said. “I have explained that the way I should take responsibility for this is to fulfill my duty to get us firmly through this situation.”

The morning meeting lasted for about an hour and a half, according to a company spokesman. Oku explained the company’s financials and apologized for the losses, the spokesman said. 

Japan’s biggest agricultural bank surprised the market this week by saying it would sell $63 billion of low-yielding US and European government bonds that had become unprofitable to hold after the firm’s shorter-term funding costs jumped. 

Norinchukin has become one of the biggest casualties of higher-for-longer borrowing costs. The bank is now overhauling its portfolio, selling off a third of its sovereign holdings and shifting to other types of assets, including collateralized loan obligations and domestic and overseas bonds.

Japan’s Finance Minister Shunichi Suzuki said on Friday the country’s financial regulator will continue to work closely with the agricultural ministry to grasp the impact of yield trends on the bank. 

Norinchukin has sufficient capital adequacy that exceeds the current regulatory level and its financial soundness is secured, he said. Still, authorities are asking the bank to establish an appropriate risk management system, according to Suzuki.  

Nochu, as the lender is known, is in talks with member cooperatives about a planned 1.2 trillion yen capital raise. The amount sought has not changed, the bank said on Thursday.

--With assistance from Bret Okeson.

(Updates with comments from bank, finance minister, AGM attendee throughout)

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