Impact of COVID-19 on Regional Economies, Credit Costs, and Business Continuity
First written in FY2020. 5 of 11 entries say "Restated". Latest entry: FY2024-Q2.
The whole theme swung hardest in 2020: 12 of 31 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2024-Q2MitigatedAnnual report
「During the six-month period ended 30 September, the Japanese economy recovered moderately as economic activity normalised following the reclassification of COVID-19 as a Class 5 infectious disease.」
The normalisation of economic activity following the reclassification of COVID-19 as a Class 5 infectious disease and the recovery in local personal consumption and tourism-related businesses were reported. However, it was not stated that the impact on credit risk estimates had disappeared. - FY2024-Q1RestatedAnnual report
「In addition to these assumptions, the Group assumes that the impact of COVID-19 on economic activity will remain after the end of the previous consolidated fiscal year, and that the credit risk associated with the Group's loans and other assets will be affected to a certain extent. Under these circumstances, the Group reflects available information affecting estimates in its debtor classifications. There has been no material change in this assumption from the previous consolidated fiscal year.」
The assumption that the impact of COVID-19 would remain after the end of the previous consolidated fiscal year was maintained and reflected in the estimate of credit risk. No material change was identified in the assumption from the previous fiscal year. - FY2023MitigatedAnnual report
「Personal consumption and tourism-related businesses recovered moderately as the impact of COVID-19 eased.」
The impact of the infectious disease on the regional economy eased, and a recovery in personal consumption and tourism-related businesses was reported. However, in estimating the allowance for loan losses, the assumption that the impact of the infectious disease would persist was maintained. - FY2023-Q2MitigatedAnnual report
「In the local economy, as in Japan as a whole, personal consumption and tourism-related businesses recovered moderately as the impact of COVID-19 eased.」
The impact of COVID-19 eased, and personal consumption and tourism-related businesses were reported to have recovered moderately. However, in estimating credit risk, no material change was made to the assumption that the impact of the infectious disease would continue for the time being. - FY2023-Q1RestatedAnnual report
「In addition to these assumptions, the Group assumes that the spread of COVID-19 and its impact on economic activity will continue for the time being from the end of the previous consolidated fiscal year, and that the credit risk associated with the Group's loans and other assets will be affected to a certain extent. Under these circumstances, the Group reflects available information affecting estimates in its debtor classifications. There has been no material change in this assumption from the previous consolidated fiscal year.」
The assumption that the impact of COVID-19 would continue for the time being was maintained and reflected in the estimate of credit risk. No material change in the assumption from the previous fiscal year was identified. - FY2022-Q2RestatedAnnual report
「During the six-month period ended 30 September, the Japanese economy was significantly affected by the impact of COVID-19, which had continued since the previous year.」
The impact of COVID-19 continued, with personal consumption declining in the local economy and tourism-related businesses remaining in an extremely difficult situation. No material change was made to the assumption that the impact of the infectious disease on credit risk estimates would continue for the time being from the end of the previous fiscal year. - FY2022-Q1RestatedAnnual report
「In addition to these assumptions, the Group assumes that the spread of COVID-19 and its impact on economic activity will continue for the time being from the end of the previous consolidated fiscal year, and that the credit risk associated with the Group's loans and other assets will be affected to a certain extent. Under these circumstances, the Group reflects available information affecting estimates in its debtor classifications. There has been no material change in this assumption from the previous consolidated fiscal year.」
The assumption that the impact of COVID-19 would continue for the time being was maintained and reflected in the estimate of credit risk. No material change in the assumption from the previous fiscal year was identified. - FY2021-Q3WorsenedAnnual report
「The Group assumes that the spread of COVID-19 and its impact on economic activity will continue for the time being, and that the credit risk associated with the Group's loans and other assets will be affected to a certain extent. Under these circumstances, the Group reflects available information affecting estimates in its debtor classifications and records an allowance for loan losses. Provision for allowance for loan losses ¥1,406 million ¥5,798 million」
The assumption that COVID-19 and its impact on economic activity would continue for the time being was maintained, and the credit risk associated with loans and other assets was reflected in the estimate of the allowance for loan losses. During the nine-month period ended 31 December, the provision for allowance for loan losses increased from ¥1,406 million in the same period of the previous year to ¥5,798 million. - FY2021-Q2MaterialisedAnnual report
「During the six-month period ended 30 September, the Japanese economy was severely affected by the spread of COVID-19. Production declined, personal consumption fell sharply, corporate earnings deteriorated rapidly and employment conditions weakened. Provision for allowance for loan losses ¥1,369 million ¥4,494 million」
The adverse impact of COVID-19 on production, consumption and corporate earnings was recorded in actual results. The provision for allowance for loan losses also increased from ¥1,369 million in the same period of the previous year to ¥4,494 million, quantifying the impact on credit costs. - FY2021-Q1RestatedAnnual report
「The Group assumes that the spread of COVID-19 and its impact on economic activity will continue for approximately one year from the end of the previous consolidated fiscal year, and that the credit risk associated with the Group's loans and other assets will be affected to a certain extent. Under these circumstances, the Group reflects available information affecting estimates in its debtor classifications and records an allowance for loan losses.」
The assumption that the impact of the infectious disease would continue for approximately one year from the end of the previous fiscal year was maintained, and the credit risk associated with loans and other assets was reflected in debtor classifications and the estimate of the allowance for loan losses. Although the assumption remains uncertain, no material changes were identified during the quarter. - FY2020First statedAnnual report
「In response to COVID-19, which was spreading worldwide, countries including Japan introduced measures such as states of emergency and cross-border travel bans. In Japan, people were asked to refrain from non-essential outings and travel across prefectural borders, while businesses including restaurants were also asked to suspend operations. These measures have brought the movement of people and goods to a halt worldwide. There is still no sign that the situation has subsided in Japan, overseas or the local economy, and concern remains over the expanding and prolonged impact.」
COVID-19 was disclosed independently for the first time as a risk that could cause a rapid deterioration in the local economy, worsening business conditions among counterparties, higher credit costs, difficulties in maintaining business operations and market volatility. Credit costs for the fiscal year ending March 2021 were projected at ¥9 billion.