Conservative provisioning against medium- to long-term loan-loss risks
First written in FY2017-Q1. 20 of 34 entries say "Mitigated", first in FY2017-Q2. Latest entry: 2026-11-11.
Aozora Bank moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 30 of 56 companies on the "Worse" side.
25 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The problem-loan amount decreased from ¥76,241 million to ¥45,702 million, and loans requiring management decreased from ¥15,472 million to ¥9,058 million.」
The problem-loan amount and loans requiring management decreased from the end of the previous fiscal year, and the subtotal under the Financial Revitalization Law also declined from ¥91.7 billion to ¥55.2 billion. Loan-loss provisions decreased from ¥71.0 billion to ¥53.0 billion. - FY2026-H1MitigatedAnnual report
「Problem-loan amount ¥76,241 million ¥50,057 million Subtotal ¥91,713 million ¥66,155 million」
The problem-loan amount decreased from ¥76.241 billion to ¥50.057 billion, and the subtotal of disclosed claims under the Financial Revitalization Law declined from ¥91.713 billion to ¥66.155 billion. Meanwhile, loan write-offs of ¥5.537 billion were recorded during the interim period. - FY2025MitigatedAnnual report
「The balance of loans to borrowers at risk of failure involving US office properties declined by approximately 40% in line with the plan, while additional credit-related expenses were limited.」
For loans involving US office properties, the balance of loans to borrowers at risk of failure declined by approximately 40% in line with the plan, and additional credit-related expenses were also limited. - FY2025-H1MitigatedAnnual report
「Problem-loan amount ¥118,572 million ¥94,677 million Subtotal ¥131,105 million ¥113,565 million」
The problem-loan amount decreased from ¥118.5 billion to ¥94.7 billion, and the subtotal of disclosed claims under the Financial Revitalization Law declined from ¥131.1 billion to ¥113.5 billion. Loan-loss provision expenses also decreased from ¥9.778 billion in the same period of the previous year to ¥4.255 billion. - FY2024-Q3WorsenedAnnual report
「The company re-examined all non-recourse real estate loan cases involving US office properties and reassessed property valuations from a forward-looking perspective, incorporating the risk of price declines over the next 2 years in addition to current valuations. It recorded ¥32.4 billion in provision expenses in the third quarter as the maximum currently anticipated level of coverage. As a result, the provision ratio for non-recourse real estate loans involving US office properties was 18.8% as of the end of December, securing an adequate buffer and minimizing the risk of losses arising in the future.」
An additional ¥32.4 billion provision was recorded for non-recourse real estate loans involving US office properties, incorporating the risk of price declines over the next 2 years, bringing the provision ratio to 18.8%. The burden of addressing credit risk is becoming more pronounced. - FY2024-Q2WorsenedAnnual report
「Credit-related expenses amounted to ¥9.0 billion in the second quarter and ¥9.9 billion for the interim period, primarily due to additional provisions for overseas non-recourse real estate loans.」
Credit-related expenses for the interim period amounted to ¥9.9 billion due to additional provisions for overseas non-recourse real estate loans and other factors. Additional loan-loss provisions are increasingly translating into actual loss burdens. - FY2024-Q1WorsenedAnnual report
「Credit-related expenses totaled ¥900 million, comprising ¥300 million in specific provisions for overseas real estate non-recourse loans, ¥300 million in losses on sales resulting from the rebalancing of North American corporate loans, and ¥200 million in general provisions associated with the increase in the loan balance.」
The company incurred ¥900 million in credit-related expenses due to specific loan-loss provisions for overseas non-recourse real estate loans, losses on the sale of North American corporate loans, and general provisions associated with the increase in outstanding loans. - FY2023-Q3MitigatedAnnual report
「• The consolidated disclosed-claims ratio under the Financial Revitalization Law was 0.50% (down 0.13 percentage points from 31 March 2022 and down 0.07 percentage points from the end of September) - The balance of disclosed claims decreased by ¥1.5 billion from 31 March 2022 (down ¥2.4 billion from the end of September)」
The disclosed-claims ratio declined to 0.50%, and the balance of disclosed claims also decreased. The loan-loss provision ratio to outstanding loans was maintained at 1.06%, and that for overseas loans at approximately 1.7%. - FY2023-Q1MitigatedAnnual report
「• The consolidated disclosed-claims ratio under the Financial Revitalization Law was 0.52% (down 0.11 percentage points from the end of the previous fiscal year) - Disclosed claims decreased by ¥2.1 billion from the end of the previous fiscal year due to the resolution of problem claims and other factors」
Disclosed claims decreased by ¥2.1 billion due to the resolution of problem claims and other factors, and the disclosed-claims ratio declined to 0.52%. Although the loan-loss provision ratio declined to 1.17%, it remained at an adequate level. - FY2022-Q3MitigatedAnnual report
「The disclosed-claims ratio under the Financial Revitalization Law for the bank on a standalone basis was 0.50%, down 0.36 percentage points from 31 March 2021. Disclosed claims decreased by ¥9.5 billion from 31 March 2021 due to the resolution of problem claims and other factors. The ratio of loan-loss provisions to outstanding loans at the end of the quarter remained at an adequate level of 1.48%.」
Disclosed claims and the disclosed-claims ratio declined due to the resolution of problem claims and other factors, while the loan-loss provision ratio was also maintained at an adequate level. - FY2022-Q2MitigatedAnnual report
「• The disclosed-claims ratio under the Financial Revitalization Law for the bank on a standalone basis was 0.60% (down 0.26 percentage points from 31 March 2021) - Disclosed claims decreased by ¥6.9 billion from the end of March due to the resolution of problem claims and other factors • The ratio of loan-loss provisions to outstanding loans at the end of the interim period remained at an adequate level of 1.54% - The ratio of loan-loss provisions to overseas loans was approximately 2.3%」
Disclosed claims and the disclosed-claims ratio declined due to the resolution of problem claims and other factors, while the loan-loss provision ratio was also maintained at an adequate level. - FY2022-Q1MitigatedAnnual report
「• The disclosed-claims ratio under the Financial Revitalization Law for the bank on a standalone basis was 0.65% (down 0.21 percentage points from the end of the previous fiscal year) - Disclosed claims decreased by ¥6.0 billion from the end of the previous fiscal year due to the resolution of problem claims and other factors • The ratio of loan-loss provisions to outstanding loans at the end of the quarter remained at an adequate level of 1.58%」
Disclosed claims decreased by ¥6.0 billion due to the resolution of problem claims and other factors, and the disclosed-claims ratio declined to 0.65%. The loan-loss provision ratio was also maintained at an adequate level of 1.58%. - FY2021MitigatedAnnual report
「The disclosed-claims ratio under the Financial Revitalization Law for the bank on a standalone basis was 0.86%, down 0.09 percentage points from the end of the previous fiscal year. The ratio of loan-loss provisions to outstanding loans at the end of the period remained high at 1.72%.」
Disclosed claims and the disclosed-claims ratio declined from the end of the previous fiscal year, while conservative provisioning was maintained. Meanwhile, provision calculations based on the assumption that the pandemic would be prolonged have continued. - FY2021-Q3Decline in disclosed claims alongside provisioning and portfolio measuresAnnual report
「Risk control measures were implemented through rebalancing the loan portfolio, and a loss on the sale of claims of ¥3.1 billion was recorded. Meanwhile, reversal gains were recorded on the general loan-loss provisions recognized in prior fiscal years. Provisions were made taking into account the prolonged impact of COVID-19.」
While the disclosed-claims ratio declined to 0.94%, the company recorded ¥1.2 billion in expenses for specific loan-loss provisions due to downgrades of individual overseas borrowers, and disclosed provisions taking into account the sale of claims and the prolonged impact of COVID-19. - FY2021-Q2WorsenedAnnual report
「Loan-loss provisions for the relevant borrowers are calculated based on the assumption that the impact of the global spread of COVID-19 on economic and corporate activity will be prolonged, and that for some borrowers the impact on business performance may continue through fiscal 2022 at the latest, taking into account the possibility of future deterioration in their credit condition.」
Loan-loss provisions were calculated on the assumption that the impact of COVID-19 could continue through fiscal 2022 at the latest, taking into account future deterioration in credit conditions. The loan-loss provision ratio remained high at 1.66% as of the end of the interim period. - FY2021-Q1WorsenedAnnual report
「Claims disclosed under the Financial Reconstruction Act increased by ¥3.6 billion from the end of the previous period to ¥32.0 billion, while the disclosed-claims ratio rose by 0.12 percentage points to 1.07%, due to factors including downgrades of certain borrowers in light of the spread of COVID-19. Excluding rehabilitation finance for failed borrowers, the disclosed-claims ratio was 0.92%. The coverage ratio for disclosed claims was 96.6%.」
Due to downgrades of borrowers in light of the spread of COVID-19, disclosed claims rose to ¥32.0 billion and the disclosed-claims ratio rose to 1.07%, indicating a deterioration in credit-risk indicators from the end of the previous fiscal year. Meanwhile, the coverage ratio was 96.6%. - FY2020-Q3MitigatedAnnual report
「Claims disclosed under the Financial Reconstruction Act increased by ¥3.0 billion from the end of March 2019 to ¥18.6 billion, a decrease of ¥1.9 billion from the end of September. The disclosed-claims ratio rose by 0.07 percentage points to 0.62%, down 0.09 percentage points from the end of September. The coverage ratio for disclosed claims was 91.6%. The ratio of the allowance for credit losses to total loans remained high at 1.41% on a consolidated basis.」
Disclosed claims and the disclosed-claims ratio increased from the end of March 2019, but declined by ¥1.9 billion and 0.09 percentage points, respectively, from the end of September. The company also continued its conservative provisioning policy and maintained a high allowance ratio. - FY2020-Q2WorsenedAnnual report
「Claims disclosed under the Financial Reconstruction Act increased by ¥5.0 billion from the end of March 2019 to ¥20.6 billion, while the disclosed-claims ratio rose by 0.16 percentage points to 0.71%. The coverage ratio for disclosed claims was 92.2%. The ratio of the allowance for credit losses to total loans remained high at 1.47% on a consolidated basis.」
Disclosed claims increased to ¥20.6 billion and the disclosed-claims ratio to 0.71%, indicating deterioration in credit-risk indicators from the end of the previous period. At the same time, the coverage ratio of 92.2% and allowance ratio of 1.47% were maintained. - FY2020-Q1WorsenedAnnual report
「Claims disclosed under the Financial Reconstruction Act increased by ¥1.4 billion from the end of the previous period to ¥17.0 billion, while the disclosed-claims ratio rose by 0.04 percentage points to 0.59%, due to measures including the continued resolution of existing non-performing loans and the origination of rehabilitation finance transactions for failed borrowers. The coverage ratio for disclosed claims was 94.2%. The ratio of the allowance for credit losses to total loans remained high at 1.43% on a consolidated basis.」
Disclosed claims increased to ¥17.0 billion and the disclosed-claims ratio to 0.59% from the end of the previous period, due in part to the origination of rehabilitation finance transactions. The coverage ratio of 94.2% and allowance ratio of 1.43% were also maintained. - FY2019WorsenedAnnual report
「Claims disclosed under the Financial Reconstruction Act increased by ¥8.6 billion from the end of the previous period to ¥15.6 billion, while the disclosed-claims ratio rose by 0.29 percentage points to 0.55%. The coverage ratio for disclosed claims was 93.6%. The ratio of the allowance for credit losses to total loans remained high at 1.61% on a consolidated basis.」
Disclosed claims increased to ¥15.6 billion and the disclosed-claims ratio to 0.55%, indicating deterioration in credit-risk indicators from the end of the previous period. The allowance ratio of 1.61% and coverage ratio of 93.6% were also reported. - FY2019-Q3Decline in disclosed claims and increase in allowance ratioAnnual report
「Claims disclosed under the Financial Reconstruction Act increased by ¥1.3 billion from the end of March 2018 to ¥8.2 billion, while the disclosed-claims ratio rose by 0.04 percentage points to 0.30%. The coverage ratio for disclosed claims was 92.3%. The ratio of the allowance for credit losses to total loans remained high at 1.59% on a consolidated basis.」
Disclosed claims and the disclosed-claims ratio increased from the end of March 2018, but declined from the ¥9.0 billion and 0.33% reported for the previous quarter. The allowance ratio increased to 1.59% and remained high, indicating both improvement and deterioration. - FY2019-Q2WorsenedAnnual report
「Claims disclosed under the Financial Reconstruction Act increased by ¥2.1 billion from the end of March 2018 to ¥9.0 billion, while the disclosed-claims ratio rose by 0.07 percentage points to 0.33%. The coverage ratio for disclosed claims was 89.5%. The ratio of the allowance for credit losses to total loans remained high at 1.53% on a consolidated basis.」
Disclosed claims increased to ¥9.0 billion and the disclosed-claims ratio to 0.33%, indicating deterioration in credit-loss risk indicators from the end of the previous period. The coverage ratio of 89.5% and allowance ratio of 1.53% were also reported. - FY2019-Q1RestatedAnnual report
「During the first quarter, new non-performing loans remained minimal. However, credit-related costs resulted in a gain of ¥700 million, mainly due to the recognition of reversal gains on the general allowance for credit losses as debtor conditions improved. The company continues to take measures including conservative provisioning against potential credit loss risk from a medium- to long-term perspective, and the ratio of the allowance for credit losses to total loans remains high at 1.62%.」
New non-performing loans were minimal, while the company continued conservative provisioning and maintained the allowance ratio at the high level of 1.62%. - FY2018-Q3MitigatedAnnual report
「Claims disclosed under the Financial Reconstruction Act decreased by ¥6.9 billion, or 53.5%, from the end of March 2017 to ¥6.0 billion, due to the collection of claims requiring caution and other factors. The disclosed-claims ratio declined by 0.28 percentage points to 0.22%. The coverage ratio for disclosed claims was 88.9%. The ratio of the allowance for credit losses to total loans remained high at 1.79% on a consolidated basis.」
The collection of claims requiring caution and other factors reduced disclosed claims to ¥6.0 billion and the disclosed-claims ratio to 0.22%. The high allowance ratio was also maintained. - FY2018-Q2MitigatedAnnual report
「Claims disclosed under the Financial Reconstruction Act decreased by ¥8.8 billion, or 68.4%, from the end of March 2017 to ¥4.1 billion, due to the collection of claims requiring caution and other factors. The disclosed-claims ratio declined by 0.35 percentage points to 0.15%. The coverage ratio for disclosed claims was 83.7%. The ratio of the allowance for credit losses to total loans remained high at 1.78% on a consolidated basis.」
The collection of claims requiring caution and other factors reduced disclosed claims to ¥4.1 billion and the disclosed-claims ratio to 0.15%. The allowance ratio remained high at 1.78%. - FY2018-Q1MitigatedAnnual report
「Claims disclosed under the Financial Reconstruction Act decreased by ¥9.3 billion, or 72.5%, from the end of the previous period to ¥3.5 billion, due to the collection of claims requiring caution and other factors. The disclosed-claims ratio declined to 0.13%. The coverage ratio for disclosed claims was 100.0%. The ratio of the allowance for credit losses to total loans remained high at 1.86% on a consolidated basis.」
The collection of claims requiring caution and other factors reduced disclosed claims to ¥3.5 billion and the disclosed-claims ratio to 0.13%, while the coverage ratio reached 100.0%. Conservative provisioning also continued. - FY2017-Q3RestatedAnnual report
「The company continues to take measures including conservative provisioning against potential credit loss risk from a medium- to long-term perspective. The ratio of the allowance for credit losses to total loans remains high at 2.20%.」
The company continues to make conservative provisions against potential credit loss risk and maintains the allowance ratio at the high level of 2.20%. - FY2017-Q2MitigatedAnnual report
「Claims disclosed under the Financial Reconstruction Act decreased by ¥5.9 billion, or 25.5%, from the end of March 2016 to ¥17.1 billion, due to the collection of claims requiring caution and claims requiring management, among other factors. The disclosed-claims ratio improved by 0.23 percentage points from the end of March to 0.67%. The coverage ratio for disclosed claims was 86.7%. The ratio of the allowance for credit losses to total loans remained high at 2.28% on a consolidated basis.」
Disclosed claims declined to ¥17.1 billion and the disclosed-claims ratio improved to 0.67%, while the allowance ratio remained high at 2.28%. - FY2017-Q1First statedAnnual report
「The company continues to take measures including conservative provisioning against potential medium- to long-term credit loss risk. The ratio of the allowance for credit losses to total loans remains high at 2.40%.」
The company identified medium- to long-term credit loss risk and reported conservative provisioning measures and an allowance ratio of 2.40%.