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?