Increase in Related Costs Associated with Core System Renewal
First written in FY2024-Q2. 1 of 4 entries say "Dropped", first in FY2025-H1. Latest entry: FY2026.
Okinawa Financial Group moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
4 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Selection of the next-generation core system」
The focus of the core system renewal shifted from its previous description as a factor behind higher expenses to a strategic renewal plan involving the selection of the next-generation system, with completion scheduled for January 2030 and capital investment of ¥12.177 billion. - FY2025-H1DroppedAnnual report
「Ordinary expenses decreased by ¥280 million year on year to ¥22.903 billion, despite higher credit-related expenses, due mainly to lower operating expenses and losses on sales of Japanese government bonds and other bonds.」
In this filing, costs related to the renewal of the core system, which had been cited as a factor behind higher expenses through the previous quarter, were no longer cited as a major factor behind ordinary expenses. - FY2024-Q3Continued as a factor behind higher expensesAnnual report
「Ordinary expenses increased by ¥2.515 billion year on year to ¥33.843 billion, due to higher related costs associated with the renewal of the core system, increased losses on securities resulting from a portfolio review, and higher credit-related expenses due to downgrades and other factors.」
The increase in related costs associated with the renewal of the core system continued to be cited as a factor behind the increase in ordinary expenses, which rose by ¥2.515 billion year on year. - FY2024-Q2First statedAnnual report
「Ordinary expenses increased by ¥2.274 billion year on year to ¥23.184 billion, due to higher costs associated with the renewal of the core banking system and increased losses on securities resulting from a portfolio review, as well as higher credit-related costs following downgrades and the reversal of the previous year's credit cost gains.」
Higher costs associated with the renewal of the core banking system were cited for the first time as one factor behind the increase in ordinary expenses for the interim consolidated accounting period.