Risk of Deteriorating Earnings Due to Negative Interest Rates and Market Conditions
First written in FY2016. 7 of 28 entries say "Worsened", first in FY2018. Latest entry: FY2026.
Jimoto Holdings moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 11 of 21 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026Middle East Tensions, Oil Price Concerns and Changing Interest-Rate ConditionsAnnual report
「Prolonged tensions in the Middle East raise concerns about impacts including surging crude oil prices. In financial terms, the Bank of Japan’s policy rate hikes have brought back a world with interest rates and significantly changed the operating environment for regional financial institutions.」
In addition to the change in the interest-rate environment caused by policy rate hikes, the report identifies prolonged tensions in the Middle East and surging crude oil prices as new sources of concern in the operating environment. - FY2025Environmental change driven by a return to a world with interest rates and external policy factorsAnnual report
「The Bank of Japan raised its policy rate twice, bringing back a world with interest rates and significantly changing the operating environment for regional financial institutions.」
The report organises the change in the interest-rate environment caused by policy rate hikes, along with rising prices and US policy trends, as new environmental changes, replacing the previous focus on low interest rates, the infectious disease and monetary-tightening risks. - FY2024Accelerating change due to high prices, interest-rate volatility, population decline and digital transformationAnnual report
「The environment surrounding regional finance is expected to change at an increasingly rapid pace due to the contraction of regional economies against a backdrop of population decline and other factors, changes in interest-rate trends, competition among banks, and transformation of the financial business through digital transformation using IT.」
In addition to the uncertainty caused by low interest rates, competition and the infectious disease, the report identifies population decline, changes in interest-rate trends and transformation of the financial business through digital transformation as factors driving changes in the environment. - FY2023-Q3RestatedAnnual report
「However, as global monetary tightening continues, a downturn in overseas economies and rising prices pose risks of putting downward pressure on Japan’s economy.」
While a recovery in the economy is underway in the post-pandemic environment, the report continues to identify global monetary tightening, a downturn in overseas economies and rising prices as downside risks. - FY2023-Q2WorsenedAnnual report
「However, continued global monetary tightening and other factors pose a risk that a downturn in overseas economies will put downward pressure on Japan’s economy.」
While expressing expectations for an economic recovery in the post-pandemic environment, the report explicitly identifies global monetary tightening and a downturn in overseas economies as new downside risks. - FY2023-Q1MitigatedAnnual report
「During the first 3 months of the fiscal year, as economic and social activity moved toward normalisation while thorough measures were taken to prevent COVID-19 infections, household consumption and other areas showed signs of recovery.」
While the previous year’s report described increasing uncertainty due to the prolonged infectious disease, supply chain disruptions and rising prices and interest rates, this quarter’s report describes the normalisation of economic and social activity and signs of recovery in household consumption and other areas. - FY2022WorsenedAnnual report
「During the fiscal year, disruptions in the financial and economic markets expanded further due to the prolonged COVID-19 pandemic, sharp global increases in prices and interest rates caused by supply chain disruptions, and Russia’s invasion of Ukraine, increasing uncertainty about the outlook.」
In addition to the infectious disease, low interest rates and market competition, the report explicitly identifies supply chain disruptions, rising prices and interest rates, and Russia’s invasion of Ukraine as new sources of uncertainty. - FY2022-Q3MitigatedAnnual report
「During the first 9 months of the fiscal year, as the challenging situation caused by COVID-19 gradually eased, household consumption and other areas showed signs of recovery.」
Although the challenging economic environment caused by the infectious disease continued, the report describes easing conditions and signs of recovery in household consumption and other areas, representing a modest improvement from the previous quarter’s wording concerning economic deterioration and the risk of a prolonged downturn. - FY2022-Q2WorsenedAnnual report
「During the first 6 months of the fiscal year, Japan’s economy remained sluggish for an extended period as economic activity was constrained by the spread of COVID-19. External demand was sluggish, and household consumption lacked strength.」
The report states that the domestic economic slowdown has been prolonged due to restrictions on economic activity caused by the infectious disease, sluggish external demand and weak household consumption. - FY2022-Q1WorsenedAnnual report
「During the first 3 months of the fiscal year, Japan’s economy deteriorated as economic activity stagnated due to the effects of COVID-19. The spread of its impact continued globally, and the outlook remained uncertain.」
The description has shifted from an economic environment that included recovery and signs of improvement to one explicitly describing stagnant economic activity and economic deterioration caused by the infectious disease. - FY2021-Q3Recovery amid challenging conditionsAnnual report
「During the first 9 months of the fiscal year, Japan’s economy remained in a challenging situation due to the effects of COVID-19, although signs of recovery emerged in household consumption and other areas.」
While the challenging economic environment caused by the effects of the infectious disease continued, the report states that household consumption and other areas showed signs of recovery. - FY2021-Q1WorsenedAnnual report
「Although signs of recovery have emerged following the lifting of the state of emergency, continued attention is required regarding developments related to infectious diseases in Japan and overseas and volatility in the financial and capital markets.」
While signs of recovery have emerged in the domestic economy, the report continues to specifically identify developments related to infectious diseases and volatility in the financial and capital markets as new downside factors. - FY2020WorsenedAnnual report
「In particular, economic activity has recently been pushed down sharply by the effects of COVID-19, leaving the outlook uncertain. Close attention is required to the risk of further downside in domestic and overseas economies and the financial and capital markets.」
In addition to the challenging earnings environment caused by low interest rates, competition among banks and FinTech, the report explicitly identifies the downside risks to the economy and financial markets arising from COVID-19. - FY2020-Q3Weakness in domestic manufacturing and stagnation in regional economiesAnnual report
「During the first 9 months of the fiscal year, Japan’s economy continued to recover moderately, although exports remained weak and weakness, particularly in manufacturing, intensified further.」
While indicating a moderate recovery trend, the report states that exports remained weak and weakness in manufacturing intensified further. It also describes a stalled recovery in the Miyagi prefectural economy. - FY2020-Q2Uncertainty due to trade issues, the Chinese economy and other factorsAnnual report
「The economy remained on an uncertain course, with attention required regarding trade issues, the outlook for the Chinese economy, rising crude oil prices and volatility in the financial and capital markets.」
While describing a moderate recovery in the domestic economy, the report specifically identifies trade issues, the Chinese economy, crude oil prices and volatility in the financial and capital markets as sources of uncertainty for the outlook. - FY2020-Q1Domestic economic stability coexisting with recovery and stagnation in regional economiesAnnual report
「During the first 3 months of the fiscal year, Japan’s economy remained relatively stable, although exports continued to be weak, as employment conditions steadily improved and corporate earnings remained solid.」
The report states that the domestic economy remained relatively stable, supported by employment and corporate earnings, while exports continued to be weak. In the company’s operating regions, it describes both a stalled recovery in Miyagi and a moderate recovery in Yamagata. - FY2019RestatedAnnual report
「However, the outlook remains uncertain due to the impact of US policy trends, the slowdown in the Chinese economy, geopolitical risks and other factors.」
While indicating a moderate recovery in the domestic economy, the report continues to identify US policy, the Chinese economy and geopolitical risks as sources of uncertainty for the outlook. - FY2019-Q2Uncertain outlook due to trade policy and geopolitical risksAnnual report
「During the first 6 months of the fiscal year, Japan’s economy was recovering moderately as employment and income conditions continued to improve. However, concerns including US trade policy issues and rising global geopolitical risks left the economy facing an uncertain outlook.」
While indicating a moderate recovery in the domestic economy, the report specifically identifies US trade policy issues and global geopolitical risks as sources of uncertainty for the outlook. - FY2019-Q1Domestic economic stability and recovery trend in regional economiesAnnual report
「During the first 3 months of the fiscal year, Japan’s economy remained relatively stable, as corporate capital investment, employment conditions and the income environment continued to improve and overall corporate earnings remained solid.」
Unlike the previous year’s concerns about a challenging environment caused by negative interest rates, FinTech and entry by companies from other industries, the report describes the domestic economy as having remained relatively stable during the quarter. - FY2018WorsenedAnnual report
「However, the business environment is expected to become increasingly challenging due to the effects of negative interest rates, FinTech and new entrants from other industries.」
In addition to the low-interest-rate environment, the report explicitly identifies FinTech and entry by companies from other industries as new sources of pressure, reinforcing concerns about the earnings environment. - FY2018-Q3Continued recovery trend in the domestic economyAnnual report
「During the first 9 months of the fiscal year, Japan’s economy continued to recover moderately as household consumption recovered amid continued improvement in employment and income conditions.」
The report describes a moderate recovery trend in the domestic economy, supported by improvements in employment and income conditions and the recovery in household consumption. - FY2018-Q2Recovery trend coexisting with overseas and geopolitical risksAnnual report
「Although expectations for an economic recovery are growing, the outlook remains uncertain in light of concerns about a slowdown in overseas economies, including emerging markets, and heightened geopolitical risks.」
While expressing expectations for an economic recovery, the report identifies concerns about a slowdown in overseas economies, including emerging markets, and geopolitical risks as sources of uncertainty. - FY2018-Q1Recovery trend coexisting with weaknessAnnual report
「The moderate recovery trend continued, as household consumption and capital investment, which had been slow to improve, showed signs of recovery.」
While stating that the domestic economy continued to recover, the report notes that household consumption, residential investment and public investment remained weak in the company’s operating regions. The wording concerning sources of uncertainty has shifted to reflect the coexistence of recovery and weakness. - FY2017Change in uncertainty factorsAnnual report
「During the fiscal year, Japan’s economy continued to recover moderately, with corporate earnings and employment and income conditions showing signs of improvement. However, the outlook remained uncertain due to the impact of the change in the US administration and heightened geopolitical risks.」
While recognising the recovery trend in the domestic economy, the report identifies the change in the US administration and geopolitical risks as sources of uncertainty. - FY2017-Q3Addition of a source of uncertaintyAnnual report
「During the first 9 months of the fiscal year, Japan’s economy continued to recover moderately against a backdrop of improving corporate earnings and employment conditions. However, overseas developments, including the UK’s decision to leave the EU and concerns about policy trends following the US presidential election, had a significant impact, leaving the economy unstable.」
In addition to the UK’s decision to leave the EU, the report specifically identifies concerns about policy trends following the US presidential election as a source of uncertainty in the economic environment. - FY2017-Q2Addition of a source of uncertaintyAnnual report
「The outlook remains uncertain due to the advancing appreciation of the yen, the slowdown in the Chinese economy, and the decision for the UK to leave the EU.」
In addition to the UK’s decision to leave the EU and other factors cited in the previous quarter, the report specifically identifies the advancing appreciation of the yen and the slowdown in the Chinese economy as sources of uncertainty in the market and economic environment. - FY2017-Q1Greater Specificity in Sources of UncertaintyAnnual report
「The outlook remains uncertain due to factors including sluggish growth in personal consumption and the impact of the United Kingdom's decision to leave the European Union (EU).」
The Group cites sluggish personal consumption and the United Kingdom's decision to leave the EU as specific factors contributing to uncertainty in market and economic conditions. - FY2016First statedAnnual report
「Given market and economic conditions, earnings are expected to come under increasing pressure going forward」
In light of negative interest rates and uncertainty in market trends, the Group identifies strengthening earnings power and improving efficiency as key challenges.