Earnings volatility due to economic stagnation, interest rate policy and infectious diseases
First written in FY2023. 1 of 4 entries say "Softened", first in FY2024. Latest entry: FY2026.
Rakuten Bank moved to the "Worse" side of this theme in 2024.
0 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Occurrence of natural disasters, pandemics and other events ■ Business interruption and significant deterioration in service quality due to damage to business locations and the safety of officers and employees, or an increase in infections ■ Declining demand for the Group's services due to the stagnation of economic activity caused by natural disasters, pandemics and other events」
The bank continues to explain that business interruption and declining demand caused by natural disasters and pandemics generally, rather than the impact of COVID-19 alone, are top risks. - FY2025ReframedAnnual report
「Occurrence of natural disasters, pandemics and other events ■ Business interruption and significant deterioration in service quality due to damage to business locations and the safety of officers and employees, or an increase in infections ■ Declining demand for the Group's services due to the stagnation of economic activity caused by natural disasters, pandemics and other events」
The explanation has broadened from the impact of COVID-19 alone to identifying business interruption and declining demand caused by natural disasters and pandemics generally as top risks. - FY2024SoftenedAnnual report
「COVID-19 was reclassified as a Category V infectious disease in May 2023 and has shown a degree of stabilization, including the easing of behavioral restrictions, but unprecedented infectious diseases may still emerge and spread in the future.」
The disclosure describes COVID-19 as having stabilized to a certain extent, with less emphasis than during the previous period of infection spread. Meanwhile, the risks of new infectious diseases and economic deterioration remain. - FY2023First statedAnnual report
「If economic conditions deteriorate further due to a greater-than-expected spread of infectious diseases or other factors, or if economic stagnation is prolonged, the Group's operating performance and financial position may be affected by lower revenue resulting from declining demand for funds, higher credit-related expenses, and valuation losses on securities held and other assets.」
The bank identifies COVID-19, geopolitical conditions, inflation, monetary tightening overseas, and Japan's monetary policy as external environmental risks.