Risk of a Narrowing Gross Interest Margin Due to Low and Negative Interest Rates
First written in FY2016. 27 of 39 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-10-28.
Japan Post Bank moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
0 other companies' latest entry also says "Materialised".
- FY2026MitigatedAnnual report
「Recently, while the U.S. and European central banks have maintained their policy rates and the Bank of Japan has raised its policy rate, the domestic-overseas interest rate differential has been trending narrower. However, if the differential widens again due to future monetary policy developments and other factors, this may have a significant impact on the Group's results of operations and financial position through higher foreign-currency funding costs.」
The domestic-overseas interest rate differential has been narrowing, and the trend toward lower foreign-currency funding costs was said to be continuing. Meanwhile, the risk of a renewed widening continues to be disclosed. - 2026-05-15MitigatedEarnings presentation materials
「資金粗利鞘は0.56%。」
資金粗利鞘が前年度の0.40％から0.56％へ改善した。国内金利上昇による国債等の収益増加が、低金利・金利差による収益圧迫の緩和要因として示された。 - FY2026-H1MitigatedAnnual report
「Domestic long-term interest rates are on an upward trend, and if this trend continues, earnings are expected to improve as a result of higher yields on new investments in Japanese government bonds and other assets. In addition, overseas short-term interest rates have declined against a backdrop of a shift in monetary policy by the U.S. and European central banks following the easing of inflation, and the trend toward lower foreign-currency funding costs continues.」
It is stated that changes in the domestic and overseas interest rate environment are expected to result in higher yields on new domestic investments and lower foreign-currency funding costs. The risk of earnings pressure from low interest rates and interest rate differentials has shifted toward partial mitigation. - FY2025WorsenedAnnual report
「At the end of the fiscal year under review, valuation gains (losses) on investments held for other purposes deteriorated by ¥1,210.3 billion from the end of the previous fiscal year, after taking hedges into account, to a loss of ¥1,087.9 billion before the tax effect, due to higher domestic interest rates and other factors.」
The decline in the value of bonds and other assets resulting from higher domestic interest rates was reflected in a significant deterioration in valuation gains (losses), with the impact of interest rate risk on results expanding. - FY2025-H1Coexistence of stabilizing domestic-overseas interest rate differentials and foreign-currency funding costs with declining bond valuesAnnual report
「Recently, as central banks' monetary policies have entered a transition phase, with the U.S. and European central banks lowering policy rates while the Bank of Japan has raised its policy rate, the trend toward a wider domestic-overseas interest rate differential is beginning to ease. However, if the differential widens again due to future monetary policy developments and other factors, this may have a significant impact on the Group's results of operations and financial position through higher foreign-currency funding costs.」
While rate cuts in the U.S. and Europe and a rate hike by the Bank of Japan were said to be easing the trend toward a wider interest rate differential and foreign-currency funding costs, the value of bonds and other assets held has declined due to higher domestic interest rates, indicating a change in the nature of interest rate risk. - FY2024-Q3WorsenedAnnual report
「In particular, overseas short-term interest rates have recently risen as the U.S. and European central banks have tightened monetary policy against a backdrop of high global inflation, widening the domestic-overseas interest rate differential and making the increase in foreign-currency funding costs more pronounced. If the domestic-overseas interest rate differential widens further, this may have a significant impact on the Group's results of operations and financial position.」
Higher overseas short-term interest rates and a wider domestic-overseas interest rate differential increased foreign-currency funding costs, reducing net interest income by ¥71.1 billion year on year. The decline in the value of bonds and other assets also continued. - FY2024-Q2WorsenedAnnual report
「Of this, net interest income decreased by ¥91.9 billion year on year, mainly due to higher foreign-currency funding costs.」
Higher overseas short-term interest rates and a wider domestic-overseas interest rate differential increased foreign-currency funding costs, with the impact reflected in a ¥91.9 billion year-on-year decrease in net interest income. - FY2024-Q1WorsenedAnnual report
「In particular, overseas short-term interest rates have recently risen as the U.S. and European central banks have tightened monetary policy against a backdrop of high global inflation, widening the domestic-overseas interest rate differential and making the increase in foreign-currency funding costs more pronounced. If the domestic-overseas interest rate differential widens further, this may have a significant impact on the Group's results of operations and financial position.」
With respect to risks related to low interest rates and interest rate differentials, it is stated that higher overseas short-term interest rates and a wider domestic-overseas interest rate differential have made the increase in foreign-currency funding costs more pronounced. - FY2023MaterialisedAnnual report
「Recently, the value of bonds and other assets held by the Group has declined due to higher domestic and overseas interest rates resulting from monetary tightening by the U.S. and European central banks and the Bank of Japan's review of its yield curve control operations.」
Higher domestic and overseas interest rates led to an actual decline in the value of bonds and other assets held, and net unrealized gains (losses) on other securities also decreased. - FY2023-Q3MaterialisedAnnual report
「Recently, the value of bonds and other assets held by the Group has declined due to higher domestic and overseas interest rates resulting from monetary tightening by the U.S. and European central banks and the Bank of Japan's review of its yield curve control (YCC) operations.」
It is stated that higher domestic and overseas interest rates resulting from monetary tightening by overseas central banks and the review of YCC operations led to an actual decline in the value of bonds and other assets held. - FY2023-Q2RestatedAnnual report
「In addition, the domestic low-interest-rate environment is continuing, and the group's operating environment remains challenging because its primary source of earnings is investment in domestic and overseas securities.」
The continued domestic low-interest-rate environment has been reconfirmed. Income from foreign bond investment trusts declined due to higher overseas interest rates and other factors. - FY2023-Q1MaterialisedAnnual report
「Of this, net interest income decreased by ¥89.2 billion year on year, mainly due to a decrease in income from foreign bond investment trusts. The decrease in income from foreign bond investment trusts was attributable to an increase in special distributions that could not be recognized as income due to higher overseas interest rates and wider credit spreads, a decrease in gains on redemption associated with the early redemption of bonds held in the investment trusts, an increase in foreign-currency funding costs, and a decrease in gains on cancellation of investment trusts, among other factors.」
Higher overseas interest rates, wider credit spreads and higher foreign-currency funding costs, among other factors, reduced income from foreign bond investment trusts, with the resulting earnings pressure reflected in a ¥89.2 billion year-on-year decrease in net interest income. - FY2022MaterialisedAnnual report
「In the fiscal year under review, net interest income in the domestic operations segment decreased to ¥402.2 billion, mainly due to a decrease in interest income on government bonds as high-yield Japanese government bonds purchased in the past matured while the domestic low-interest-rate environment continued.」
The prolonged domestic low-interest-rate environment and decrease in interest income on government bonds were reflected in net interest income of ¥402.2 billion in the domestic operations segment. - FY2022-Q3MaterialisedAnnual report
「In addition, with the domestic low-interest-rate environment also continuing for an extended period, the Group, whose principal source of earnings is investment in domestic and overseas securities, continues to face a challenging operating environment.」
The prolonged domestic low-interest-rate environment continued, with earnings pressure reflected in a ¥46.8 billion year-on-year decrease in net interest income in the domestic operations segment. Meanwhile, overall net interest income increased due to an increase in interest income on foreign securities. - FY2022-Q1RestatedAnnual report
「As the low-interest-rate environment has continued for an extended period, and although vaccines have been developed and vaccinations have progressed in some regions in response to COVID-19, the emergence of variants and other factors have left the international community and global economy in an environment of continued high uncertainty. Accordingly, the Group, whose principal source of earnings is investment in domestic and overseas securities, continues to face a challenging operating environment.」
The prolonged low-interest-rate environment continues to be noted. Meanwhile, overall net interest income increased in the quarter under review due to an increase in interest income on foreign securities. - FY2021MaterialisedAnnual report
「Of this, under a challenging operating environment, including the prolonged low-interest-rate environment, interest income on securities declined, resulting in a ¥14.6 billion decrease in net interest income from the previous consolidated fiscal year.」
The prolonged low-interest-rate environment reduced interest income on securities, with the resulting earnings pressure reflected in a ¥14.6 billion year-on-year decrease in net interest income in the full-year results. - FY2021-Q3MaterialisedAnnual report
「Of this, under a challenging operating environment, including the prolonged low-interest-rate environment, interest income on securities declined, resulting in a ¥49.1 billion year-on-year decrease in net interest income.」
The prolonged low-interest-rate environment and decrease in interest income on securities reduced net interest income by ¥49.1 billion year on year. - FY2021-Q2MaterialisedAnnual report
「Of this, interest income on securities declined, resulting in a ¥80.7 billion year-on-year decrease in net interest income.」
Against a backdrop of the prolonged low-interest-rate environment, interest income on securities declined, reducing net interest income by ¥80.7 billion year on year, with the earnings pressure from low interest rates becoming evident in the interim period. - FY2021-Q1MaterialisedAnnual report
「Of this, interest income on securities declined, resulting in a ¥63.2 billion year-on-year decrease in net interest income.」
Against a backdrop of the prolonged low-interest-rate environment, interest income on securities declined, reducing net interest income by ¥63.2 billion year on year, with the risk of a narrower gross earnings spread becoming evident in the quarter under review. - FY2020MaterialisedAnnual report
「Of this, net interest income decreased by ¥39.2 billion from the previous consolidated fiscal year, mainly due to the decrease in interest income on government bonds.」
The prolonged low-interest-rate environment led to pressure on net interest income through the decrease in interest income on government bonds, which was reflected in the full-year results. - FY2020-Q3MaterialisedAnnual report
「Of this amount, net interest income decreased by ¥43.2 billion year on year, mainly due to lower interest income on government bonds.」
The decrease in interest income on government bonds resulting from low interest rates was reflected in a ¥43.2 billion year-on-year decrease in net interest income in the cumulative results through the third quarter. - FY2020-Q2MaterialisedAnnual report
「Of this, net interest income decreased by ¥47.2 billion year on year, mainly due to the decrease in interest income on government bonds.」
The decrease in interest income on government bonds resulting from the low-interest-rate environment was reflected in a ¥47.2 billion year-on-year decrease in net interest income in the interim results. - FY2020-Q1MaterialisedAnnual report
「Of this amount, net interest income decreased by ¥19.9 billion year on year, mainly due to lower interest income on government bonds.」
The decrease in interest income on government bonds resulting from low interest rates was reflected in a ¥19.9 billion year-on-year decrease in net interest income in the first-quarter results. - FY2019MaterialisedAnnual report
「Of this, net interest income decreased by ¥159.7 billion from the previous consolidated fiscal year, mainly due to the decrease in interest income on government bonds.」
The decrease in interest income on government bonds resulting from low interest rates was reflected in a ¥159.7 billion year-on-year decrease in net interest income in the full-year results. - FY2019-Q3MaterialisedAnnual report
「Of this amount, net interest income decreased by ¥116.9 billion year on year, mainly due to lower interest income on government bonds.」
The decrease in interest income on government bonds resulting from low interest rates was reflected in a ¥116.9 billion year-on-year decrease in net interest income in the cumulative results through the third quarter. - FY2019-Q2MaterialisedAnnual report
「Of this, net interest income fell by ¥68.9 billion year on year.」
The decrease in interest income on government bonds resulting from the low-interest-rate environment was reflected in a ¥68.9 billion year-on-year decrease in net interest income in the interim results. - FY2019-Q1MaterialisedAnnual report
「Of this amount, net interest income decreased by ¥27.3 billion year on year, mainly due to lower interest income on government bonds.」
Against a backdrop of low interest rates, interest income on government bonds declined, reducing net interest income by ¥27.3 billion year on year, with the earnings pressure from low interest rates becoming evident in the first quarter under review. - FY2018MaterialisedAnnual report
「Of this, net interest income decreased by ¥47.8 billion from the previous fiscal year, mainly due to the decrease in interest income on government bonds.」
The decrease in interest income on government bonds resulting from the low-interest-rate environment was reflected in a ¥47.8 billion year-on-year decrease in net interest income in the full-year results. - FY2018-Q3MaterialisedAnnual report
「Of this amount, net interest income decreased by ¥48.6 billion year on year to ¥912.8 billion, mainly due to lower interest income on government bonds.」
Against a backdrop of low interest rates, interest income on government bonds declined, reducing net interest income by ¥48.6 billion year on year, with the earnings pressure from low interest rates becoming evident in the cumulative period through the third quarter. - FY2018-Q2MaterialisedAnnual report
「Of this, net interest income was ¥618.0 billion, down ¥11.2 billion year on year, mainly due to the decrease in interest income on government bonds.」
The decrease in interest income on government bonds against a backdrop of low interest rates was reflected in a ¥11.2 billion year-on-year decrease in net interest income in the interim period under review. - FY2018-Q1MaterialisedAnnual report
「Of this, net interest income was ¥303.9 billion, down ¥4.0 billion year on year, mainly due to the decrease in interest income on government bonds.」
The decrease in interest income on government bonds against a backdrop of low interest rates was reflected in a ¥4.0 billion year-on-year decrease in net interest income in the first quarter under review. - FY2017MaterialisedAnnual report
「Of this, net interest income was ¥1,223.5 billion, down ¥137.5 billion from the previous fiscal year, mainly due to the decrease in interest income on government bonds.」
The decrease in interest income on government bonds reduced net interest income by ¥137.5 billion on a full-year basis. - FY2017-Q3MaterialisedAnnual report
「Of this, net interest income was ¥961.4 billion, down ¥99.3 billion year on year, mainly due to the decrease in interest income on government bonds.」
Against a backdrop of low interest rates, interest income on government bonds declined, reducing net interest income by ¥99.3 billion year on year. The decrease expanded from ¥70.1 billion year on year in the cumulative period through the previous quarter. - FY2017-Q2MaterialisedAnnual report
「Of this, net interest income was ¥629.3 billion, down ¥70.1 billion year on year, mainly due to a decrease in interest income on Japanese government bonds.」
Against a backdrop of low interest rates, interest income on government bonds declined, reducing net interest income by ¥70.1 billion year on year. The overall net interest margin also fell from 0.12% in the same period of the previous year to 0.06%. - FY2017-Q1MaterialisedAnnual report
「Of this, net interest income was ¥308.0 billion, down ¥47.3 billion year on year, mainly due to a decrease in interest income on Japanese government bonds.」
Under negative interest rates, interest income on Japanese government bonds declined, and the impact of low interest rates on earnings emerged in the form of a ¥47.3 billion year-on-year decrease in net interest income. - FY2016First statedAnnual report
「There are differences in the maturities and interest-rate repricing cycles of financial assets, including Japanese government bonds (¥82.2 trillion, or 39% of total assets, as of the end of March 2016), and liabilities consisting of deposits, including time deposits, and market-based funding, including foreign currencies.」
Against the backdrop of the scale of government bonds and time deposits and maturity mismatches between assets and liabilities, both falling and rising interest rates are explained as risks.