Deterioration in bond valuations and earnings due to rising interest rates in Japan and overseas
First written in FY2023-Q3. 1 of 4 entries say "Mitigated", first in FY2023. Latest entry: FY2026.
Chugin Financial Group moved to the "Worse" side of this theme in 2026, 7 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 54 of 136 companies on the "Worse" side.
16 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The market risk amount as of 31 March 2026, the fiscal year-end, was as follows: market risk amount 225,608; banking operations 225,509; price fluctuation risk 175,348; interest rate risk 71,281」
The market risk amount increased from ¥185,581 million in the previous fiscal year to ¥225,608 million, quantifying exposure to interest rate and price fluctuation risks. - 2026-05-01MaterialisedEarnings
「Bond-related gains (losses) ▲18,240 ▲15,411 ▲2,829」
The Chugoku Bank recorded a loss of ¥18.240 billion on a non-consolidated basis from bond-related gains (losses), showing the impact of domestic and overseas interest-rate trends on bond-related gains (losses). - FY2023MitigatedAnnual report
「Reduction of yen-denominated bonds and sale of hedges for foreign-currency bonds through measures such as managing investments to limit interest-rate risk」
In response to the risk of deteriorating bond valuations and earnings due to higher interest rates, the company is taking measures such as adjusting investment balances. - FY2023-Q3First statedAnnual report
「Higher interest rates worsen gains and losses on bond valuations and trading, reducing shareholders’ equity and earnings.」
The company identifies the effects of higher domestic and overseas interest rates on securities valuation gains and losses, trading gains and losses, shareholders’ equity and earnings as risks.