Deteriorating earnings environment due to negative interest rates and population decline
First written in FY2017. 9 of 10 entries say "Worsened", first in FY2018. Latest entry: FY2026.
Nishi-Nippon Financial Holdings moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2026: 10 of 12 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Top risk: population decline in the region • An outflow of people from Kyushu to outside the region exceeding expectations will shrink the customer base. • Difficulty securing personnel will force reductions in the range of services and branch network, shrinking the earnings base.」
Population decline has been classified as a top risk rather than merely an existing business-environment concern, with specific impacts identified on the customer base, personnel recruitment, branch network and earnings base. - FY2022WorsenedAnnual report
「The environment surrounding regional financial institutions remains increasingly challenging, with growing uncertainty about the outlook due to population decline, the declining birth rate and aging population, the continuation of the low-interest-rate environment, the prolonged COVID-19 pandemic, and higher prices and supply constraints resulting from the situation in Ukraine.」
In addition to the existing factors of population decline, low interest rates and intensifying competition, the prolonged COVID-19 pandemic, the situation in Ukraine, higher prices and supply constraints have been added as factors worsening the earnings environment. - FY2022-Q2WorsenedAnnual report
「During the six months ended in the second quarter, the domestic economy gradually recovered, although production showed some weakness due to factors including weak private consumption following the declaration of a state of emergency in response to the spread of COVID-19 and semiconductor supply shortages.」
In addition to the challenging earnings environment resulting from longstanding low interest rates, population decline and other factors, the description cites weak private consumption following the declaration of a state of emergency and weak production due to semiconductor supply shortages. The economy is nevertheless described as gradually recovering. - FY2021WorsenedAnnual report
「In fiscal 2020, the domestic economy deteriorated rapidly at the beginning of the fiscal year due to the spread of COVID-19.」
In addition to the pressure on earnings from the negative interest rate policy, the domestic and local Kyushu economies deteriorated rapidly at the beginning of the fiscal year due to COVID-19. - FY2021-Q2WorsenedAnnual report
「During the six months ended in the second quarter, the domestic economy was in an extremely difficult condition as production, exports and private consumption fell sharply due to the impact of COVID-19. Toward the end of the interim period, however, signs of a recovery emerged as economic activity gradually resumed.」
The impact of COVID-19 caused production, exports and private consumption to fall sharply, and the difficult earnings environment was described in terms of actual domestic economic conditions alongside the low-interest-rate environment. - FY2020WorsenedAnnual report
「The environment surrounding regional financial institutions has become increasingly challenging, due to the sharp slowdown in the global economy, the normalization of the negative interest rate policy, and intensifying competition from banks with new business models and others.」
The description of the negative interest rate policy has strengthened from “prolonged” to “normalized,” with a sharp global economic slowdown and intensifying competition added to the picture. - FY2020-Q2WorsenedAnnual report
「In the first half of fiscal 2019, the Japanese economy continued to recover moderately. Exports showed weakness and production slowed in part due to the slowdown in overseas economies, but capital investment increased against a backdrop of strong corporate earnings, while private consumption remained firm.」
In addition to the longstanding issues of low interest rates and population decline, the economic environment is described as showing weak exports and a sense of slowing production due to the overseas economic slowdown. - FY2019WorsenedAnnual report
「The challenging environment continues, with growing uncertainty over the global economy, the prolonged negative interest rate policy and market contraction resulting from population decline, compounded by intensifying competition from other regional banks and “banks with new business models.”」
Growing uncertainty over the global economy has been added to the description of a challenging environment characterized by prolonged negative interest rates, population decline, market contraction and intensifying competition. - FY2018WorsenedAnnual report
「The Group continues to operate in a challenging environment, with competition from other regional banks and internet-only banks, among others, intensifying in addition to the prolonged negative interest rate policy and market contraction associated with population decline.」
The negative interest rate policy is described as becoming prolonged, while market contraction due to population decline and intensifying competition are reaffirmed as concurrent features of a challenging earnings environment. - FY2017First statedAnnual report
「The earnings environment is becoming increasingly challenging due to declining net interest income as the negative interest rate policy continues and market contraction resulting from population decline.」
Negative interest rates and population decline are identified for the first time as business-environment factors worsening the earnings environment.