Shift from dependence on deposit and loan income to fee income and core operating revenue
First written in FY2016. 17 of 24 entries say "Advanced", first in FY2018-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2023: 1 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「By continuously introducing new businesses, we will diversify our revenue base, strengthen recurring revenue and advance the shift toward a stable revenue structure that is less affected by the interest-rate environment.」
In its new medium-term management plan, the company stated that it would strengthen recurring revenue and reduce dependence on the interest-rate environment as part of its shift toward a revenue structure that complements lending and deposit income. Fee income reached ¥230.5 billion. - FY2025-H1AdvancedAnnual report
「Combined trust fees and net fees and commissions, fee income increased ¥6.4 billion from the first half of the previous fiscal year to ¥112.3 billion, as fee income from asset-building, payment-related, corporate solutions and real estate-related operations remained solid.」
Fee income that complements lending and deposit income increased by ¥6.4 billion from the previous interim period, led by wealth formation, settlement services, corporate solutions and real estate-related services. Domestic lending and deposit income also increased due mainly to higher lending yields. - FY2024-Q3Progress in the shift toward a fee-income-based revenue structure was unevenAnnual report
「Fee income from payment-related operations increased, but fee income from asset-building and loan operations declined, reducing net fees and commissions by ¥1.5 billion from the first nine months of the previous fiscal year to ¥133.8 billion. However, it returned to growth on a quarterly basis in the third quarter.」
Although settlement-related fee income increased, cumulative fee income declined by ¥1.5 billion due to decreases in wealth-formation-related and lending-related services. On a quarterly basis, however, it turned upward. - FY2024-Q1Progress in the shift toward a fee-income-based revenue structure was unevenAnnual report
「Fee income from payment-related operations increased, but fee income from succession-related and asset-building operations declined, reducing net fees and commissions by ¥2.6 billion from the first quarter of the previous fiscal year to ¥47.3 billion.」
Although settlement-related fee income increased, total complementary fee income declined by ¥2.6 billion year on year due to decreases in succession-related and wealth-formation-related income. - FY2023-Q3AdvancedAnnual report
「Driven by fee income from insurance sales, succession-related operations, including real estate and M&A, and payment-related operations, net fees and commissions increased ¥0.8 billion from the first nine months of the previous fiscal year to ¥135.3 billion.」
Fee income from insurance sales, succession-related services and settlement-related services grew as complementary revenue sources to lending and deposit income, bringing fees and commissions income to ¥135.3 billion. - FY2023-Q2AdvancedAnnual report
「Fees and commissions income increased by ¥2.6 billion from the previous interim consolidated accounting period to ¥98.0 billion, driven by revenue from succession-related services such as real estate and M&A, settlement-related services such as debit cards and EB, and insurance sales through wealth-formation support services. The consolidated fee-income ratio increased by 4.6 percentage points from the previous interim consolidated accounting period to 37.3%.」
Fee income that complements lending and deposit income brought fees and commissions income to ¥98.0 billion and the consolidated fee-income ratio to 37.3%, led by succession-related services, settlement services and wealth-formation support. - FY2023-Q1AdvancedAnnual report
「Driven by fee income from succession-related operations, including real estate and M&A, net fees and commissions increased ¥4.2 billion from the first quarter of the previous fiscal year to ¥49.9 billion.」
Fee income from succession-related services such as real estate and M&A grew as a complementary revenue source to lending and deposit income, bringing fees and commissions income to ¥49.9 billion. - FY2022-Q3AdvancedAnnual report
「Driven by asset-building support operations, including investment funds and fund wraps, and succession-related operations, including real estate and M&A, net fees and commissions increased ¥12.1 billion from the first nine months of the previous fiscal year to ¥134.5 billion.」
As complementary revenue sources to lending and deposit income, wealth-formation support, real estate and succession-related services such as M&A grew, increasing fees and commissions income by ¥12.1 billion year on year. - FY2022-Q2AdvancedAnnual report
「Driven by asset-building support operations, including investment fund sales, and succession-related operations, including real estate and M&A, net fees and commissions increased ¥11.1 billion from the first half of the previous fiscal year to ¥95.3 billion.」
As complementary revenue sources to lending and deposit income, wealth-formation support, real estate and succession-related services such as M&A grew, bringing fees and commissions income to ¥95.3 billion. - FY2022-Q1AdvancedAnnual report
「Driven by asset-building support and payment-related operations, net fees and commissions increased ¥6.2 billion from the first quarter of the previous fiscal year to ¥45.6 billion.」
Fee income that complements lending and deposit income increased to ¥45.6 billion in fees and commissions income, led by wealth-formation support and settlement-related services. - FY2021AdvancedAnnual report
「Fee income, comprising trust fees and fees and commissions income, increased by ¥1.2 billion, or 0.6%, from the previous fiscal year to ¥191.4 billion.」
Regarding the shift toward a fee-income-based revenue structure, the company disclosed that combined trust fees and fees and commissions income increased to ¥191.4 billion. - FY2021-Q1Decline in fees and commissions income due to restrictions on face-to-face salesAnnual report
「Net fees and commissions also declined by ¥3.8 billion from the first 3 quarters of the previous fiscal year due to restrictions on face-to-face sales and other factors.」
Regarding the revenue structure that supplements declining lending and deposit income with fee income, fees and commissions income decreased by ¥3.8 billion year on year due to restrictions on face-to-face sales and other factors, resulting in uneven progress in the shift in the revenue structure. - FY2020Decline in fee income alongside growth in recurring fee incomeAnnual report
「Consolidated fee income decreased by ¥3.5 billion from the previous fiscal year to ¥190.2 billion, and the consolidated fee-income ratio was 28.8%. Recurring fee income, excluding investment trust and insurance sales commissions, increased by 1.2% from the previous fiscal year.」
While total fee income declined due to lower financial product sales commissions, recurring fee income, including fund wraps and settlement services, increased. - FY2020-Q3Progress in the shift in the revenue structure was uneven in the third quarterAnnual report
「Within gross operating profit, funds-related income decreased by ¥6.9 billion from the nine-month period of the previous fiscal year to ¥318.2 billion, as domestic lending and deposit income declined due mainly to the lower lending-deposit spread, despite an increase in interest and dividends on securities. Fees and commissions income decreased by ¥4.7 billion from the nine-month period of the previous fiscal year to ¥122.7 billion, as higher fee income from fund wrap sales and settlement-related services was more than offset by a decline in fee income from sales of financial products such as investment trusts and insurance.」
Funds-related income declined due to the lower lending-deposit spread, while fee income also decreased by ¥4.7 billion year on year, mainly because of lower revenue from financial product sales. In contrast, revenue from fund wrap sales and settlement-related services increased, indicating divergent trends among revenue sources. - FY2019AdvancedAnnual report
「Fees and commissions income increased by ¥25.1 billion from the previous fiscal year to ¥174.5 billion, driven by insurance sales revenue and mortgage-related revenue. On an underlying basis, it increased by ¥5.4 billion year on year.」
The company disclosed fees and commissions income of ¥174.5 billion, up ¥25.1 billion year on year, reflecting the shift in the revenue structure through fee income from insurance sales, mortgages and other services. - FY2019-Q3AdvancedAnnual report
「The decline in net interest income resulting from the narrowing of the loan-deposit spread and other factors was partially offset by increased fee income from housing loan-related and corporate solutions-related businesses.」
The shift toward a revenue structure that supplements declining funds-related income with fee income is being pursued through mortgage-related services and corporate solutions. - FY2019-Q2AdvancedAnnual report
「It decreased by ¥5.2 billion due mainly to the narrowing lending-deposit spread. On an underlying year-on-year basis, fee income from financial product sales, including fund wraps and insurance, and mortgage-related services performed well, increasing by ¥6.1 billion.」
The decline in funds-related income resulting from the narrowing lending-deposit spread was offset by higher fee income from financial product sales and mortgage-related services. - FY2019-Q1AdvancedAnnual report
「Total net fees and commissions for the cumulative first quarter amounted to ¥43.4 billion.」
Net fees and commissions increased from ¥36.6 billion in the same period of the previous year to ¥43.4 billion, demonstrating the shift in the revenue structure, including fee income. - FY2018AdvancedAnnual report
「Fees and commissions income increased by ¥6.7 billion from the previous fiscal year to ¥149.4 billion, driven by corporate solutions revenue.」
The decline in funds-related income caused by the narrowing lending-deposit spread was partly offset by higher fees and commissions income, mainly from corporate solutions. - FY2018-Q3AdvancedAnnual report
「Gross operating profit decreased by ¥14.2 billion from the nine-month period of the previous fiscal year to ¥408.1 billion, mainly due to a decline in funds-related income resulting from the narrowing lending-deposit spread. … Total net fees and commissions came to ¥106.3 billion.」
While funds-related income decreased by ¥4.1 billion year on year due to the narrowing lending-deposit spread, net fees and commissions increased from ¥103.9 billion to ¥106.3 billion, providing quantitative evidence of the shift in the revenue structure, including fee income. - FY2017RaisedAnnual report
「We will seek to build a long-term, stable fee-income base by substantially expanding recurring fee income.」
Regarding fee income that complements lending and deposit income, the company explicitly stated that it would substantially expand recurring revenue, strengthening its wording on the shift in its revenue structure. - FY2016First statedAnnual report
「To overcome the downward trend in domestic lending and deposit income caused by lower lending rates and strengthen the corporate business」
Against a backdrop of narrowing lending-deposit spreads, fees, trust services, insurance and real estate have been positioned as complementary sources of value-added revenue.