Increase in Loan Losses and Credit-Related Expenses in the Integrated Financial Services Business
First written in FY2017. 8 of 16 entries say "Worsened", first in FY2021-Q1. Latest entry: 2026-10-13.
Aeon moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2019: 6 of 14 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- 2026-10-13MitigatedEarnings
「加えて、与信の高度化や債権管理の効率化により貸倒関連費用を抑制したことから、営業利益は前年同期を上回りました。」
与信高度化・債権管理効率化により、海外の貸倒関連費用を抑制したと記載した。 - FY2026-H1MitigatedAnnual report
「In Hong Kong, operating profit increased substantially because bad-debt-related expenses improved despite operating revenue remaining at about the same level as in the same period of the previous year, owing to enhanced benefits tailored to consumers' preference for saving, individually targeted customer approaches based on data analysis, and strengthened systems for ongoing credit assessment and collections.」
Regarding credit costs in the Comprehensive Financial Services business, bad-debt-related expenses improved in Hong Kong as a result of individual customer approaches and strengthened systems for ongoing credit assessment and collections. - FY2025WorsenedAnnual report
「Provision for credit losses ¥87,788 million」
Regarding credit costs in the Comprehensive Financial Services business, the provision for credit losses increased from ¥70.951 billion in the previous fiscal year to ¥87.788 billion. - FY2025-H1WorsenedAnnual report
「In Greater China, the burden on consumers has continued in Hong Kong, the main area, because of the stagnation of the Chinese economy and rising prices and mortgage interest rates, resulting in an increase in bad-debt-related expenses.」
In Hong Kong, bad-debt-related expenses continued to increase against a backdrop of the stagnation of the Chinese economy and rising prices and mortgage interest rates. - FY2025-Q1MaterialisedAnnual report
「In Greater China, bad-debt-related expenses are increasing in Hong Kong, the main area, as a result of the impact of the stagnation of the Chinese economy, although」
An actual increase in bad-debt-related expenses occurred in Hong Kong against a backdrop of stagnation in the Chinese economy. - FY2024-Q3WorsenedAnnual report
「In addition to the Comprehensive Financial Services business, where the provision for credit losses increased in line with operating receivables」
In the Comprehensive Financial Services business, the provision for credit losses increased in line with the balance of operating receivables, becoming a factor in a ¥14.723 billion year-on-year decline in operating profit. - FY2024-Q2WorsenedAnnual report
「Profit declined in the Comprehensive Financial Services business, where the provision for credit losses increased in line with the balance of operating receivables.」
In the Comprehensive Financial Services business, the provision for credit losses actually increased as operating receivables grew, becoming a factor in a ¥10.802 billion year-on-year decline in operating profit. - FY2024-Q1WorsenedAnnual report
「Comprehensive Financial Services business, where the provision for credit losses and sales promotion expenses increased in line with operating receivables」
In the Comprehensive Financial Services business, the provision for credit losses increased in line with the balance of operating receivables, and operating profit decreased by ¥6.038 billion from the same period of the previous year. - FY2023-Q1MitigatedAnnual report
「Although profit declined in the Comprehensive Financial Services business, results exceeded expectations, owing to factors including growth in card transaction volumes in Japan and overseas and efforts to reduce bad-debt-related expenses.」
The company stated that credit costs in the Comprehensive Financial Services business came in above expectations as a result of efforts to reduce bad-debt-related expenses. - FY2022MitigatedAnnual report
「The provision for credit losses decreased from ¥70,084 million in the previous fiscal year to ¥48,440 million in the current fiscal year.」
The provision for credit losses decreased from ¥70.084 billion in the previous fiscal year to ¥48.440 billion, reducing the credit cost burden. - FY2022-Q2MitigatedAnnual report
「Provision for credit losses ¥48,985 million ¥21,902 million」
The provision for credit losses decreased from ¥48.985 billion in the same period of the previous year to ¥21.902 billion, reducing the credit cost burden. - FY2021WorsenedAnnual report
「Provision for credit losses ¥70,084 million」
The provision for credit losses increased from ¥64,440 million in the previous fiscal year to ¥70,084 million, increasing the credit cost burden. - FY2021-Q2WorsenedAnnual report
「Provision for credit losses ¥48,985 million」
The provision for credit losses increased from ¥32.727 billion in the same period of the previous year to ¥48.985 billion, increasing the credit cost burden in preparation for future bad debts during the pandemic. - FY2021-Q1WorsenedAnnual report
「In light of these circumstances, provisions for credit losses were recorded in preparation for a future increase in bad debts, resulting in an increase in the provision for credit losses in Japan and overseas and becoming a major factor in lower profit in the Comprehensive Financial Services business.」
In light of the spread of COVID-19, provisions for credit losses increased in Japan and overseas in preparation for future increases in bad debts. - FY2020-Q3MaterialisedAnnual report
「Increase in provision for credit losses accompanying the buildup of performing receivables in Malaysia, where IFRS 9, Financial Instruments, has been adopted」
An actual increase in the provision for credit losses accompanying the buildup of performing receivables occurred in Malaysia, becoming a factor in lower profit in the Comprehensive Financial Services business. - FY2017First statedAnnual report
「However, if credit-related expenses or the balance of non-performing loans increases more than anticipated, this may affect the Group's operating performance and financial position.」
For consumer loans and other receivables, the Group identifies as a risk an increase in credit-related expenses and non-performing loan balances beyond expectations.