Business and Financial Risks Arising from the Spread of COVID-19
First written in FY2020. 6 of 17 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2025-H1.
Yokohama Financial Group moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 12 of 31 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「After a certain period had passed since COVID-19 was reclassified as a Category 5 disease, and the subsequent performance of borrowers had begun to be reflected in obligor classification assessments, we determined that the gap in the degree of uncertainty regarding future prospects between specified industries and other industries was narrowing.」
The disclosure stated that the difference in uncertainty regarding future prospects between specified industries and other industries was narrowing with respect to the impact of COVID-19 on economic activity. - FY2024MitigatedAnnual report
「Although the impact of COVID-19 on economic activity in Japan is being resolved as restrictions on going out have been lifted following the transition to Category 5, the impact on the future business activities of borrowers remains uncertain because of the end of public support such as subsidies, labour shortages arising during the pandemic, changes in consumer behaviour, and other factors,」
The disclosure stated that the impact of the pandemic on economic activity was being resolved, while uncertainty remained regarding its impact on borrowers' business activities and credit risk. - FY2024-Q3RestatedAnnual report
「Although the impact of COVID-19 on economic activity in Japan is weakening, its impact on borrowers' credit risk remains uncertain,」
The recognition that, while the impact of COVID-19 on economic activity had weakened, its impact on borrowers' credit risk remained uncertain was reaffirmed. - FY2024-Q1RestatedAnnual report
「Although the impact of COVID-19 on economic activity in Japan is weakening, its impact on borrowers' credit risk remains uncertain,」
The recognition that, while the impact of COVID-19 on economic activity had weakened, its impact on borrowers' credit risk remained uncertain was reaffirmed. - FY2023MitigatedAnnual report
「Although the impact of COVID-19 on economic activity in Japan is weakening, its impact on borrowers' credit risk remains uncertain,」
The disclosure stated that, although the impact of the pandemic on economic activity had weakened, uncertainty remained regarding its impact on borrowers' credit risk. - FY2023-Q3MitigatedAnnual report
「Personal consumption recovered against a backdrop of the weakening impact of COVID-19 in Japan, the normalisation of economic activity, and gradual improvement in employment and income conditions.」
The disclosure stated that the weakening impact of COVID-19 had led to the normalisation of economic activity and a recovery in personal consumption. Meanwhile, the accounting assumption that the effects of the pandemic would continue for the time being was maintained. - FY2023-Q2MaterialisedAnnual report
「However, in the July-September quarter, the momentum of personal consumption slowed because of the rapid spread of COVID-19 and deteriorating consumer sentiment resulting from further price increases for food and other goods.」
The rapid spread of COVID-19 and rising prices appeared in the interim-period economic environment as deteriorating consumer sentiment and slower growth in personal consumption. - FY2023-Q1RestatedAnnual report
「We assume that the effects of the spread of COVID-19 will continue for the time being but gradually subside.」
The recognition that the effects of COVID-19 will continue for the time being but gradually subside was reaffirmed. - FY2022RestatedAnnual report
「To continue providing customers with services necessary for the functioning of society, we are working to expand contactless services for customers and secure systems for business continuity, including telework and split operations for officers and employees, while giving consideration to the safety of customers, officers and employees.」
The continued potential effects of COVID-19 variants and other factors were recognised, and contactless services, telework, and split operations were described as countermeasures. - FY2022-Q3WorsenedAnnual report
「We had assumed that the effects of the spread of COVID-19 would gradually ease during the interim consolidated accounting period toward the end of the current consolidated fiscal year. However, in light of the resurgence of infections during the third quarter and other circumstances, we revised the assumption to one that the effects would continue for the time being but gradually subside.」
In light of the resurgence of infections and other factors, the previous assumption that the effects of the pandemic would ease toward the end of the fiscal year was revised to an assumption that the effects would continue for the time being. - FY2022-Q2MaterialisedAnnual report
「In August, Kanagawa Prefecture also became subject to the state of emergency, and restrictions on going out were tightened. As a result, personal consumption remained weak, particularly service consumption. Corporate production activity also stalled in its recovery, partly because of supply constraints affecting automotive components.」
The state of emergency related to COVID-19, weak service consumption, and the stalled recovery in production activity actually appeared in the economic environment of the Tokyo metropolitan area and Kanagawa Prefecture. - FY2022-Q1MaterialisedAnnual report
「Looking back at Japan's economy in the April-June 2021 quarter, exports remained on a recovery trend, but personal consumption and other areas weakened, leaving the pace of economic recovery slow.」
While the effects of COVID-19 persisted, weak personal consumption and the slow pace of economic recovery appeared in the economic environment during the quarter. - FY2021MaterialisedAnnual report
「Consolidated gross profit decreased by ¥13,947 million from the previous consolidated fiscal year to ¥201,931 million, mainly because other operating income declined, including as a result of actively recognising valuation losses on investment trusts. Operating expenses increased by ¥2,070 million from the previous consolidated fiscal year to ¥136,888 million, mainly because initiatives set out in the medium-term management plan, including digital initiatives, were implemented. Credit-related costs increased by ¥5,217 million from the previous consolidated fiscal year to ¥31,583 million, reflecting stringent provisioning in preparation for the spread of COVID-19 and additional precautionary provisions for certain business partners.」
The pandemic's business and financial effects appeared in the annual results, including an increase in credit-related costs to ¥31,583 million due to stringent and additional precautionary provisioning in preparation for the spread of the pandemic. - FY2021-Q3WorsenedAnnual report
「We had assumed that the effects of the spread of COVID-19 would gradually ease toward the end of the current consolidated fiscal year. However, in light of the resurgence of infections during the third quarter and the reissuance of the state of emergency in January 2021, we have revised the assumption so that the effects will gradually ease toward the end of the following consolidated fiscal year.」
In light of the resurgence of infections and the reissuance of the state of emergency in January 2021, the assumed timing for the easing of the pandemic's effects was revised from the end of the current consolidated fiscal year to the end of the following consolidated fiscal year. - FY2021-Q2MaterialisedAnnual report
「However, as the end of the impact of COVID-19 remained unforeseeable, concerns about the economic outlook persisted. Corporate capital investment remained sluggish during the cumulative six-month period of the second quarter of the consolidated fiscal year, and employment and income conditions also remained difficult.」
As the effects of the pandemic did not subside, they continued into the interim period in the form of sluggish corporate capital investment and difficult employment and income conditions. - FY2021-Q1MaterialisedAnnual report
「Looking back at Japan's economy in the April-June 2020 quarter, the economy entered an extremely severe situation as exports and personal consumption, which had been weakening since the second half of fiscal 2019, declined further.」
The decline in exports and personal consumption associated with the spread of COVID-19, and the extremely severe economic conditions, materialised in the economic environment during the quarter. The accounting assumption was that the effects would gradually ease in the second half of the fiscal year, although the disclosure stated that this assumption was uncertain. - FY2020First statedAnnual report
「If the business conditions of borrowers fluctuate because of weak personal consumption, stagnant production activity and other factors, resulting in loan losses exceeding estimated losses, or if interest rates, foreign exchange rates, and bond and equity markets fluctuate beyond expectations, the Group's results of operations, financial condition, and access to funding and capital may be affected.」
COVID-19 was first explicitly identified as an independent business risk. The disclosure addressed potential effects on borrowers' business conditions and loan losses, financial markets, and funding and capital procurement, with some effects materialising as higher credit-related costs.