A regional commercial bank is considering a 1-year loan to be fully funded by deposits, with the following parameters:

• Loan amount: JPY 4.2 billion

• Average annual interest rate paid on deposits: 0.4%

• Annual interest rate received on loan: 3.2%

• Expected loss: 2.0% of face value of loan

• Annual operating costs: 0.5% of face value of loan

• Economic capital required to support the loan: 10.0%

• Average pre-tax return on economic capital: 1.4%

• Effective tax rate: 38%

• Other transfer costs: JPY 0

What is the after-tax RAROC for this loan?