Risk of Fluctuations in Interest Rates, Foreign Exchange Rates and Securities Prices
First written in FY2016. 7 of 30 entries say "Worsened", first in FY2020. Latest entry: FY2026.
Kyushu Financial Group moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 13 of 16 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As of 31 March 2026, 株式会社肥後銀行's VaR for interest rate risk was ¥11.4 billion (¥15.2 billion at the end of the previous consolidated fiscal year), while VaR for price fluctuation risk was ¥16.4 billion (¥25.5 billion at the end of the previous consolidated fiscal year). At 株式会社鹿児島銀行, VaR for interest rate risk was ¥8.0 billion (¥17.1 billion at the end of the previous consolidated fiscal year), while VaR for price fluctuation risk was ¥9.5 billion (¥20.5 billion at the end of the previous consolidated fiscal year).」
VaR for interest rate risk and price fluctuation risk declined from the end of the previous fiscal year at both banks. The negative valuation difference on available-for-sale securities also narrowed from ¥62.137 billion to ¥47.963 billion, while deferred hedge gains/losses improved. - 2026-05-14MitigatedEarnings
「Valuation differences on other securities △62,137 △47,963 Deferred hedge gains (losses) 69,135 90,866」
The negative valuation difference on other securities narrowed, while deferred hedge gains also increased. Although the effects of market movements remained, valuation impacts improved from the end of the previous fiscal year. - FY2026-H1MitigatedAnnual report
「Valuation difference on available-for-sale securities △ 62,137 △ 44,312 Deferred hedge gains/losses 69,135 77,584」
The negative valuation difference on available-for-sale securities narrowed from ¥62.137 billion at the end of the previous fiscal year to ¥44.312 billion, while deferred hedge gains/losses improved from ¥69.135 billion to ¥77.584 billion. The impairment loss on securities was zero. - FY2025VaR decline concurrent with deterioration in valuation difference on securitiesAnnual report
「As of 31 March 2025, 株式会社肥後銀行's VaR for interest rate risk was ¥14.6 billion (¥19.9 billion at the end of the previous consolidated fiscal year), while VaR for price fluctuation risk was ¥25.5 billion (¥29.3 billion at the end of the previous consolidated fiscal year). At 株式会社鹿児島銀行, VaR for interest rate risk was ¥17.1 billion (¥19.7 billion at the end of the previous consolidated fiscal year), while VaR for price fluctuation risk was ¥20.5 billion (¥24.1 billion at the end of the previous consolidated fiscal year).」
VaR for interest rate risk and price fluctuation risk declined from the end of the previous fiscal year at both banks, while valuation difference on available-for-sale securities deteriorated from negative ¥31.755 billion to negative ¥62.137 billion. The market-related impact was not one-directional. - FY2025-H1WorsenedAnnual report
「Valuation difference on available-for-sale securities △ 31,755 △ 33,943 Deferred hedge gains/losses 74,773 57,082」
The negative valuation difference on available-for-sale securities widened from ¥31.755 billion at the end of March 2024 to ¥33.943 billion, while deferred hedge gains/losses declined from ¥74.773 billion to ¥57.082 billion. During the interim period, valuation difference on available-for-sale securities was negative ¥2.2 billion, and deferred hedge gains/losses were negative ¥1.769 billion. Meanwhile, the impairment loss on securities was zero. - FY2024-Q3MitigatedAnnual report
「Valuation difference on available-for-sale securities △ 47,047 △ 37,736 Deferred hedge gains/losses 50,474 61,530」
The negative valuation difference on available-for-sale securities narrowed from ¥47.047 billion to ¥37.736 billion, while deferred hedge gains/losses improved from ¥50.474 billion to ¥61.530 billion. Although the impact of market fluctuations remained, the valuation impact improved from the end of the previous fiscal year. - FY2024-Q2WorsenedAnnual report
「Valuation difference on available-for-sale securities △47,047 △69,803 Deferred hedge gains/losses 50,474 89,437」
The negative valuation difference on available-for-sale securities widened from ¥47.047 billion to ¥69.803 billion. Meanwhile, deferred hedge gains/losses improved from ¥50.474 billion to ¥89.437 billion, so the market-related impact was not one-directional. The impairment loss on securities during the interim period was zero. - FY2024-Q1Narrowing of the negative valuation difference and improvement in deferred hedge gains/lossesAnnual report
「Valuation difference on available-for-sale securities △ 47,047 △ 40,855 Deferred hedge gains/losses 50,474 58,320」
The negative valuation difference on available-for-sale securities narrowed from ¥47.047 billion to ¥40.855 billion, while deferred hedge gains/losses improved from ¥50.474 billion to ¥58.320 billion. The impact of market fluctuations remained, but the valuation impact for the quarter was not a one-directional deterioration from the end of the previous fiscal year. - FY2023WorsenedAnnual report
「As of 31 March 2023, 株式会社肥後銀行's VaR for interest rate risk was ¥21.4 billion (¥5.6 billion at the end of the previous consolidated fiscal year), while VaR for price fluctuation risk was ¥26.3 billion (¥30.8 billion at the end of the previous consolidated fiscal year). At 株式会社鹿児島銀行, VaR for interest rate risk was ¥15.9 billion (¥8.0 billion at the end of the previous consolidated fiscal year), while VaR for price fluctuation risk was ¥23.0 billion (¥27.0 billion at the end of the previous consolidated fiscal year).」
VaR for interest rate risk increased at both banks, from ¥5.6 billion to ¥21.4 billion at 肥後銀行 and from ¥8.0 billion to ¥15.9 billion at 鹿児島銀行. Valuation difference on available-for-sale securities also shifted from positive ¥22.732 billion to negative ¥47.047 billion. - FY2023-Q3WorsenedAnnual report
「Valuation difference on available-for-sale securities 22,732 △ 73,306 Deferred hedge gains/losses 19,326 70,523」
Valuation difference on available-for-sale securities shifted from positive ¥22.732 billion at the end of March 2022 to negative ¥73.306 billion at the end of December 2022. Valuation difference on available-for-sale securities for the nine-month period was also negative ¥96.039 billion, reflecting an increased valuation impact from fluctuations in market interest rates, securities prices and other factors. Meanwhile, deferred hedge gains/losses improved into positive territory. - FY2023-Q2WorsenedAnnual report
「Valuation difference on available-for-sale securities 22,732 △ 66,252 Deferred hedge gains/losses 19,326 69,514」
Valuation difference on available-for-sale securities shifted from positive ¥22.732 billion at the end of March 2022 to negative ¥66.252 billion at the end of September 2022. The change in valuation difference on available-for-sale securities during the interim period was negative ¥88.985 billion, reflecting an increased impact from market fluctuations in interest rates, foreign exchange rates and securities prices. Meanwhile, deferred hedge gains/losses improved into positive territory. - FY2023-Q1WorsenedAnnual report
「Valuation difference on available-for-sale securities 22,732 △ 31,199 Deferred hedge gains/losses 19,326 46,240」
Valuation difference on available-for-sale securities shifted from positive ¥22.732 billion at the end of March 2022 to negative ¥31.199 billion at the end of June 2022. The valuation difference for all available-for-sale securities also shifted from positive ¥31.7 billion to negative ¥45.8 billion. Meanwhile, deferred hedge gains/losses improved into positive territory, so the market-related impact was not one-directional. - FY2022-Q3Continued increase in valuation difference and deterioration in deferred hedge gains/lossesAnnual report
「Valuation difference on available-for-sale securities 65,194 81,534 Deferred hedge gains/losses △ 2,484 △ 10,743」
Valuation difference on available-for-sale securities increased from ¥65.194 billion at the end of March 2021 to ¥81.534 billion, while deferred hedge gains/losses deteriorated from negative ¥2.484 billion to negative ¥10.743 billion. The market-related impact was not one-directional. - FY2022-Q2Increase in valuation difference and deterioration in deferred hedge gains/losses occurred concurrentlyAnnual report
「Valuation difference on available-for-sale securities 65,194 86,039 Deferred hedge gains/losses △ 2,484 △ 15,955」
Valuation difference on available-for-sale securities increased from ¥65.194 billion at the end of March 2021 to ¥86.039 billion, while deferred hedge gains/losses deteriorated from negative ¥2.484 billion to negative ¥15.955 billion. The market-related impact was not one-directional. In addition, the impairment loss on securities during the interim consolidated accounting period was zero. - FY2022-Q1Increase in valuation difference and increase in equity securities write-downs occurred concurrentlyAnnual report
「Valuation difference on available-for-sale securities 65,194 82,956 Write-downs of equity securities, etc. 314 million 693 million」
Valuation difference on available-for-sale securities increased from the end of the previous fiscal year, while write-downs of equity securities and other instruments increased from ¥314 million in the same period of the previous year to ¥693 million. The market-related impact was not one-directional. - FY2021-Q2MaterialisedAnnual report
「The impairment loss recognized during the interim consolidated accounting period was ¥1,203 million (equity securities: ¥1,203 million).」
An impairment loss of ¥1.203 billion on equity securities related to fluctuations in market prices and other factors was actually recognized during the interim period. Meanwhile, valuation difference on available-for-sale securities increased from ¥74.783 billion at the end of the previous fiscal year to ¥87.532 billion, indicating that the impact was not one-directional. - FY2021-Q1Increase in Valuation Difference on Other SecuritiesAnnual report
「Valuation difference on available-for-sale securities 74,783 80,193」
Valuation difference on available-for-sale securities increased from ¥74.783 billion at the end of March 2020 to ¥80.193 billion at the end of June 2020. Although the impact of market price fluctuations is indicated, the disclosure does not state that market risk itself has disappeared. - FY2020WorsenedAnnual report
「株式会社肥後銀行 primarily measures VaR using the historical simulation method (holding period: 10 days to 6 months; confidence level: 99%; observation period: 5 years). As of 31 March 2020, VaR for interest rate risk was ¥11.9 billion (¥6.8 billion at the end of the previous consolidated fiscal year), while VaR for price fluctuation risk was ¥19.9 billion (¥17.2 billion at the end of the previous consolidated fiscal year).」
肥後銀行's VaR for interest rate risk increased from ¥6.8 billion to ¥11.9 billion, while VaR for price fluctuation risk increased from ¥17.2 billion to ¥19.9 billion. The annual impairment loss on securities was also ¥784.2 million. - FY2020-Q3Year-on-year improvement in valuation difference on available-for-sale securitiesAnnual report
「Valuation difference on available-for-sale securities △ 11,652 12,605」
Valuation difference on available-for-sale securities changed from a negative ¥11.652 billion in the same period of the previous year to a positive ¥12.605 billion in the nine-month period of the current fiscal year. Although the impact of market price fluctuations is indicated, the disclosure does not state that the risk itself has disappeared. - FY2020-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no unusual changes or other abnormal developments in the financial position or results of operations. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes were identified in the risks associated with fluctuations in interest rates, foreign exchange rates and securities prices. - FY2019MaterialisedAnnual report
「The impairment loss recognized during the consolidated fiscal year was ¥747 million (equity securities: ¥747 million).」
An impairment loss of ¥747 million on equity securities related to fluctuations in market prices and other factors was recognized for the fiscal year, although there had been none in the previous fiscal year. Meanwhile, 肥後銀行's VaR for interest rate fluctuation risk declined from ¥16.2 billion to ¥6.8 billion. - FY2019-Q3MaterialisedAnnual report
「Valuation difference on available-for-sale securities 11,362 △ 11,652 Quarterly comprehensive income 32,778 5,762」
Valuation difference on available-for-sale securities declined from an increase of ¥11.2 billion in the same period of the previous year to a decrease of ¥11.652 billion in the current period, while quarterly comprehensive income also declined from ¥32.778 billion to ¥5.762 billion. - FY2019-Q2MaterialisedAnnual report
「The impairment loss recognized during the interim consolidated accounting period was ¥82 million (equity securities: ¥82 million).」
An impairment loss of ¥82 million on equity securities related to fluctuations in securities market prices and other factors was actually recognized. No impairment loss was recognized in the previous consolidated fiscal year, but one arose again in the current interim period. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no unusual changes or other abnormal developments in the financial position or results of operations. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes were identified in the risks associated with fluctuations in interest rates, foreign exchange rates and securities prices. - FY2018Change in VaR measurement method and increase in interest rate riskAnnual report
「肥後銀行 primarily measures VaR using the historical simulation method (holding period: 10 days to 6 months; confidence level: 99%; observation period: 5 years). As of 31 March 2018, VaR for interest rate fluctuation risk was ¥16.2 billion (¥14.0 billion at the end of the previous consolidated fiscal year), while VaR for share price fluctuation risk was ¥17.3 billion (¥17.0 billion at the end of the previous consolidated fiscal year).」
The VaR measurement method and conditions for market risk management were disclosed, and 肥後銀行's VaR for interest rate fluctuation risk increased from ¥14.0 billion to ¥16.2 billion. - FY2018-Q2MitigatedAnnual report
「There was no impairment loss during the interim consolidated accounting period.」
An impairment loss of ¥641 million on securities related to fluctuations in market prices and other factors had been recognized in the previous consolidated fiscal year, but the impairment loss during the interim consolidated accounting period was zero. - FY2017MaterialisedAnnual report
「The impairment loss recognized during the consolidated fiscal year was ¥641 million (equity securities: ¥641 million).」
An impairment loss of ¥641 million, primarily on equity securities related to fluctuations in market prices and other factors, was recognized for the fiscal year. - FY2017-Q2MaterialisedAnnual report
「The impairment loss recognized during the interim consolidated accounting period was ¥1,381 million (equity securities: ¥1,381 million).」
An impairment loss of ¥1,381 million on equity securities related to fluctuations in market prices and other factors was actually recognized. - FY2017-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no unusual changes or other abnormal developments in the financial position or results of operations. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes were identified in the risk of fluctuations in interest rates, foreign exchange rates and securities prices. - FY2016First statedAnnual report
「The Group's assets and liabilities consist primarily of loans, securities and deposits, which are its principal businesses, while its main source of earnings is net interest income generated by the spread between lending yields and funding costs. Accordingly, fluctuations in interest rates and other factors may cause the interest spread to fluctuate and could affect the Group's performance.」
Fluctuations in interest rates, foreign exchange rates, bond yields and share prices were disclosed as market risks. VaR was ¥1.6 billion for interest rates and ¥1.88 billion for share prices at Higo Bank, and ¥840 million for interest rates and ¥3.85 billion for prices at Kagoshima Bank.