Risk of Increased Credit Costs Based on Climate Change Scenario Analysis
First written in FY2023. 2 of 4 entries say "Worsened", first in FY2025. Latest entry: FY2026.
Kyushu Financial Group moved to the "Worse" side of this theme in 2025, 1 year before the typical company in this theme (2026).
The whole theme swung hardest in 2024: 6 of 35 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The increase in credit costs through 2050 was estimated at approximately ¥6.7 billion at maximum. By contrast, the increase in credit costs through 2050 was estimated at approximately ¥24.4 billion at maximum in a single year.」
The maximum estimated physical risk was approximately ¥6.7 billion, at the same level as previously, while transition risk increased from approximately ¥18.3 billion at maximum in a single year to approximately ¥24.4 billion. - FY2025WorsenedAnnual report
「In fiscal 2024, estimates of the impairment in the collateral value of residential mortgage borrowers were added as a direct impact, resulting in an estimated increase in credit costs through 2050 of approximately ¥6.7 billion at maximum. The transportation sector was also newly added in fiscal 2024, and transition risk was quantified. The increase in credit costs through 2050 was estimated at approximately ¥18.3 billion at maximum in a single year.」
Climate-change scenario analysis was enhanced by adding residential mortgage borrowers and the transportation sector. The maximum estimated physical risk was ¥6.7 billion, while transition risk was ¥18.3 billion at maximum in a single year. The figures reflect quantification following an expansion of the analysis scope. - FY2024-Q2RestatedAnnual report
「During the cumulative second-quarter consolidated period, there were no significant changes in the matters described in the quarterly report concerning business conditions and financial information that could materially affect investors’ decisions, or in the business risks described in the securities report for the previous fiscal year.」
No material changes were identified in the risk of increased credit costs under climate-change scenario analysis. - FY2023First statedAnnual report
「Based on estimates of impairment in the value of collateral real estate held by Higo Bank and Kagoshima Bank due to damage from torrential rain and other events, and estimates of the number of days customers' businesses would be disrupted due to building damage, the increase in credit costs through 2050 was estimated at approximately ¥6.5 billion at maximum. For transition risk, the increase in credit costs through 2050 was estimated at approximately ¥10.6 billion at maximum in a single year.」
The increase in credit costs through 2050 was estimated at approximately ¥6.5 billion at maximum for the physical risk of flooding under the 4°C scenario and approximately ¥10.6 billion at maximum in a single year for transition risk under the 1.5°C scenario. These are estimates from scenario analysis and do not represent actual losses incurred.