Contraction in Deposit-Lending Interest Margins and Securities Investment Income Due to Prolonged Low Interest Rates
First written in FY2023-Q1. 3 of 10 entries say "Restated". Latest entry: 2026-08-05.
Procrea Holdings moved to the "Worse" side of this theme in 2024, 6 years after the typical company in this theme (2018).
The whole theme swung hardest in 2025: 6 of 18 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- 2026-08-05WorsenedEarnings
「Ordinary expenses increased by ¥3.736 billion year on year to ¥21.4 billion, due to higher funds procurement expenses, including interest on deposits, and higher other operating expenses, including losses on sales of government bonds and other securities.」
In the new interest-rate environment premised on higher policy rates, increased funds procurement expenses, including interest on deposits, were identified as a factor behind the rise in ordinary expenses in the first quarter. - FY2026ReframedAnnual report
「Since the Bank of Japan shifted its monetary policy, interest rates have continued to trend upward, and the shift away from management based on the former low-interest-rate environment has emerged as an actual management issue.」
The description shifted from the previous environment of compressed deposit-lending margins due to prolonged low interest rates to the need to shift to management based on higher policy rates and respond to a new interest-rate environment, including higher funding costs. - 2026-05-15MitigatedRevision of earnings forecasts
「Ordinary revenue increased by more than 10% year on year, driven by higher funds investment revenue, including interest on loans. Ordinary profit also exceeded the initial forecast, reflecting funds income above forecast as well as lower expenses and other factors.」
Higher funds investment revenue, including interest on loans, was identified as a driver of full-year revenue growth and the upward variance from the forecast. The impact of the previously identified risk of declining investment revenue on results was also shown to have weakened during the fiscal year. - FY2025SoftenedAnnual report
「In January 2025, the Bank of Japan raised its policy interest rate to around 0.5% at a Monetary Policy Meeting.」
The description shifted from the previous environment of compressed deposit-lending margins and investment income due to prolonged low interest rates to one that includes policy rate hikes and higher lending yields. - FY2024-Q3WorsenedAnnual report
「With regard to earnings, ordinary income was ¥54,622 million, down ¥4,560 million year on year, due to a decrease in fund management income, including interest and dividends on securities.」
The continuing decline in fund management income, including interest and dividends on securities, has been quantified as a ¥4,560 million year-on-year decrease in ordinary income. - FY2024-Q1WorsenedAnnual report
「With regard to earnings, ordinary income was ¥16,955 million, down ¥5,163 million year on year, due to a decrease in fund management income, including interest and dividends on securities.」
The previously documented decline in securities investment income was reflected in actual results as a ¥5,163 million year-on-year decrease in ordinary income for the first quarter, quantifying its impact. - FY2023RestatedAnnual report
「As the prolonged low-interest-rate environment continues to compress deposit-lending margins and reduce securities investment income」
Pressure from low interest rates on deposit-lending margins and securities investment income continues. - FY2023-Q3RestatedAnnual report
「As the prolonged low-interest-rate environment continues to compress deposit-lending margins and reduce securities investment income」
Pressure from low interest rates on deposit-lending margins and securities investment income continues to be described as an issue. - FY2023-Q2RestatedAnnual report
「As the prolonged low-interest-rate environment continues to compress deposit-lending margins and reduce securities investment income」
Pressure from low interest rates on deposit-lending margins and securities investment income continues to be described as an issue. - FY2023-Q1First statedAnnual report
「As the prolonged low-interest-rate environment continues to compress deposit-lending margins and reduce securities investment income」
The low-interest-rate environment is described as a structural risk that depresses deposit-lending margins and securities investment income.