Risk of Synergies from Management Integration Failing to Materialize and Additional Costs Being Incurred
First written in FY2018. 3 of 8 entries say "Advanced", first in FY2021. Latest entry: FY2024-Q3.
The whole theme swung hardest in 2017: 1 of 10 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2024-Q3Decline in profit in the Kansai Mirai Financial Group segmentAnnual report
「At Kansai Mirai Financial Group, gross operating profit decreased by ¥2.6 billion from the first 3 quarters of the previous fiscal year to ¥103.2 billion, while business profit after credit costs decreased by ¥1.6 billion to ¥26.3 billion.」
In relation to the realization of integration benefits, gross operating profit in the Kansai Mirai Financial Group segment was ¥103.2 billion and business profit after credit costs was ¥26.3 billion, both down year on year. - FY2022-Q3AdvancedAnnual report
「At Kansai Mirai Financial Group, gross operating profit increased by ¥6.4 billion from the first 3 quarters of the previous fiscal year to ¥112.1 billion, while business profit after credit costs increased by ¥13.8 billion to ¥29.5 billion.」
For the Kansai Mirai Financial Group segment, gross operating profit was ¥112.1 billion and business profit after credit costs was ¥29.5 billion, increases of ¥6.4 billion and ¥13.8 billion, respectively, from the same period of the previous year. - FY2022-Q2AdvancedAnnual report
「In the Kansai Mirai Financial Group segment, gross operating profit increased by ¥4.9 billion from the previous interim consolidated accounting period to ¥74.0 billion, while business profit after credit costs increased by ¥8.7 billion to ¥16.8 billion.」
As interim results following Kansai Mirai Financial Group's conversion into a wholly owned subsidiary, gross operating profit of ¥74.0 billion and business profit after credit costs of ¥16.8 billion were disclosed, both higher than in the interim period of the previous year. - FY2021AdvancedAnnual report
「To realize the benefits of the integration, we will continue to promote the use of trust and real estate functions at Kansai Mirai Financial Group, the development of digital transformation strategies and differentiated products, and the use of the Group's information network, while working to optimize human resources and channels on a group-wide basis.」
Measures to realize integration benefits have been specified as the use of trust and real estate functions, DX, differentiated products, information networks, and the optimization of human resources and channels. - FY2020MaterialisedAnnual report
「The impairment loss includes ¥4,610 million resulting from the reduction of the carrying amounts of operating branches, including land and buildings, to their recoverable amounts because certain consolidated banking subsidiaries in the Kansai region decided to consolidate and relocate branches following the merger, making recovery of the investments unlikely.」
Branch consolidation and relocation following the integration of the 3 Kansai banks resulted in an impairment loss of ¥4.610 billion, showing that additional financial effects related to the integration were actually recognized. - FY2019RestatedAnnual report
「If synergies are not fully realized because efforts to strengthen operational cooperation within the Group and make mutual use of management resources do not produce the intended results, or if unexpected additional costs arise from the development, integration or reorganization of management infrastructure associated with the management integration, the Group's performance and financial condition may be adversely affected because the integration benefits initially expected may not be fully realized.」
Following the management integration, the Company continues to disclose the risks of unrealized synergies and additional costs associated with infrastructure integration. - FY2019-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The Company states that there have been no material changes regarding the risk of unrealized management-integration synergies and additional costs. - FY2018First statedAnnual report
「If synergies are not fully realized because efforts to strengthen operational cooperation within the Group and make mutual use of management resources do not produce the intended results, or if unexpected additional costs arise from the development, integration or reorganization of management infrastructure associated with the management integration, the Group's performance and financial condition may be adversely affected because the integration benefits initially expected may not be fully realized.」
Following completion of the management integration of the 3 Kansai banks, the disclosure for the first time explicitly identifies the failure to realize integration benefits and the incurrence of additional costs as separate business risks.