Credit, Residual Value and Funding Risks in Financial Services
First written in FY2016. 8 of 13 entries say "Worsened", first in FY2017. Latest entry: FY2026.
Honda Motor moved to the "Worse" side of this theme in 2017.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Balance at 31 March 2026 108,374」
The provision for credit losses related to financial services increased from ¥82,125 million at the end of the previous fiscal year to ¥108,374 million. The remeasurement amount also reached ¥84,560 million, indicating an increased credit risk burden. - FY2025WorsenedAnnual report
「Remeasurement 5,515 5,773 59,675 70,963」
The remeasurement of the provision for credit losses related to financial services increased from ¥50,057 million in the previous fiscal year to ¥70,963 million, and the closing balance of the provision also increased from ¥68,999 million to ¥82,125 million. - FY2024WorsenedAnnual report
「The change from remeasurement of the provision for credit losses for the consolidated fiscal year amounted to ¥50,057 million.」
The remeasurement of the provision for credit losses increased from ¥27.018 billion in the previous fiscal year to ¥50.057 billion, and the closing balance of the provision also increased to ¥68.999 billion. - FY2023WorsenedAnnual report
「The change from remeasurement of the provision for credit losses for the consolidated fiscal year amounted to ¥27,018 million.」
The remeasurement of the provision for credit losses increased from ¥9.282 billion in the previous fiscal year to ¥27.018 billion, and the closing balance of the provision also amounted to ¥48.652 billion. - FY2022WorsenedAnnual report
「At the Group’s financial subsidiary, the change from remeasurement of the provision for credit losses for the consolidated fiscal year increased by ¥14.3 billion from the previous consolidated fiscal year. Direct write-offs decreased by ¥8.4 billion, or 40.8%. Losses from the early disposal of operating lease assets increased by ¥18.1 billion from the previous consolidated fiscal year.」
Compared with the previous fiscal year, when credit risk fell substantially as a result of government economic stimulus measures and other factors, the remeasurement of the provision for credit losses and losses from the early disposal of lease assets increased in the current fiscal year. - FY2021MitigatedAnnual report
「At the Group’s financial subsidiary, the change from remeasurement of the provision for credit losses for the consolidated fiscal year decreased by ¥61.9 billion from the previous consolidated fiscal year.」
Credit risk declined due to economic stimulus measures in North America and customer payment deferrals, reducing the remeasurement of the provision for credit losses, direct write-offs and losses from the early disposal of lease assets. - FY2020WorsenedAnnual report
「At the Group’s financial subsidiary, the change from remeasurement of the provision for credit losses for the consolidated fiscal year increased by ¥22.1 billion, or 63.8%, from the previous consolidated fiscal year. … Losses from the early disposal of operating lease assets increased by ¥24.8 billion, or 221.3%, from the previous consolidated fiscal year.」
Against the backdrop of changes in the outlook for unemployment and used-car prices due to COVID-19, the provision for credit losses increased substantially from ¥43.2 billion to ¥63.5 billion, as did losses from the early disposal of lease assets. - FY2019RestatedAnnual report
「The Group’s financial subsidiary measures its provision for credit losses using an expected credit loss model comprising the following 3 stages. Stage 1: 12-month expected credit losses on financial assets whose credit risk has not increased significantly since initial recognition …」
For credit and residual value risks in financial services, the disclosure reports IFRS 9’s three-stage expected credit loss model, delinquency assessments, and management through screening and collections. The closing balance of the provision for credit losses was ¥43.203 billion. - FY2019-Q3RestatedAnnual report
「Application of the expected loss model increased the provision for credit losses on financial services receivables as of 1 April 2018 by ¥4,599 million.」
The disclosure reconfirms that application of the IFRS 9 expected credit loss model increased the provision for credit losses on financial services receivables by ¥4.599 billion. - FY2019-Q1Increase in provisions due to application of the expected credit loss modelAnnual report
「Application of the expected loss model increased the provision for credit losses on financial services receivables as of 1 April 2018 by ¥4,599 million.」
Application of the IFRS 9 expected credit loss model increased the provision for credit losses on financial services receivables by ¥4.599 billion. This was disclosed as an increase in provisions resulting from a change in the accounting model. - FY2018WorsenedAnnual report
「At the Group’s financial subsidiary, the provision for credit losses for the consolidated fiscal year increased by ¥6.6 billion, or 22.2%, from the previous consolidated fiscal year. Credit losses, net of recoveries, increased by ¥6.4 billion, or 25.7%. In addition, losses from the early disposal of operating lease assets increased by ¥3.9 billion, or 49.1%, from the previous consolidated fiscal year, partly because operating lease assets increased in North America.」
The provision for credit losses, credit losses and losses from the early disposal of lease assets all increased year on year. - FY2017WorsenedAnnual report
「At the Group’s financial subsidiary, the provision for credit losses for the consolidated fiscal year increased by ¥4.5 billion, or 18.0%, from the previous consolidated fiscal year. Credit losses, net of recoveries, increased by ¥2.6 billion, or 11.6%. In addition, losses from the early disposal of operating lease assets increased by ¥2.5 billion, or 45.6%, from the previous consolidated fiscal year, partly because operating lease assets increased in North America.」
For credit and residual value risks in financial services, provisions for credit losses, credit losses and losses from the early disposal of lease assets all increased year on year. - FY2016First statedAnnual report
「The financial services provided by the Group involve risks relating to residual values and the cost of capital, as well as credit risk and funding risk.」
Receivables related to financial services amounted to approximately ¥5.0083 trillion, the provision for credit losses amounted to ¥25.374 billion, and credit losses increased year on year; the disclosure also reports actual risk figures.