Credit Deterioration and Rising Credit Costs Due to Regional Economic Stagnation
First written in FY2023-Q3. 3 of 7 entries say "Worsened", first in FY2026-H1. Latest entry: FY2026.
Chugin Financial Group moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2019: 6 of 14 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The weakening regional economy in the Eastern Setouchi region, centered on Okayama Prefecture, has caused the credit quality of borrowers in the region to deteriorate and credit costs to increase.」
The company continues to view the weakening regional economy as a primary factor in credit risk and identifies understanding corporate conditions, supporting business performance improvements and monitoring the regional economy as response measures. - FY2026-H1WorsenedAnnual report
「Bankruptcy and reorganization claims and similar claims ¥20.6 billion ¥33.0 billion Danger claims ¥63.3 billion ¥56.5 billion Claims requiring management ¥27.0 billion ¥26.8 billion Normal claims ¥6,347.6 billion ¥6,700.4 billion」
In the asset assessment of 株式会社中国銀行 on a standalone basis, bankruptcy and reorganization claims and similar claims increased from ¥20.6 billion to ¥33.0 billion. Meanwhile, danger claims decreased, indicating item-by-item changes in credit-related indicators. - FY2025-H1Changes in credit-related indicatorsAnnual report
「Total ¥115,479 million ¥112,518 million」
The total amount of claims subject to the Banking Act and other regulations decreased from ¥115,479 million at March 2024 to ¥112,518 million at September 2024. Meanwhile, bankruptcy and reorganization claims increased from ¥17.8 billion to ¥20.6 billion, indicating item-by-item changes in credit-related indicators. - FY2024-Q3Increase in credit-related indicatorsAnnual report
「Provision for loan losses ¥2,255 million ¥4,430 million」
The provision for loan losses increased from ¥2,255 million in the same period of the previous year to ¥4,430 million in the cumulative third-quarter period. No conclusion is drawn from the text regarding causation with the weakening regional economy or changes in the description of business and other risks. - FY2023-Q3First statedAnnual report
「Our group is primarily based in the Eastern Setouchi region, centered on Okayama Prefecture. The weakening regional economy has caused the credit quality of borrowers in the region to deteriorate and credit costs to increase.」
This indicates credit risk associated with the concentration of the company's operating base in the regional economy.