Risk of the spread of COVID-19
First written in FY2020. 11 of 17 entries say "Materialised", first in FY2022-Q2. Latest entry: FY2025.
The Akita Bank moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 12 of 31 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「During the current consolidated fiscal year, we determined that the increase in credit risk had subsided and discontinued the additional recognition of this allowance for loan losses. This change reduced the allowance for loan losses by ¥956 million.」
We determined that the increase in credit risk had subsided for lodging businesses and other sectors affected by the infectious disease, and discontinued the additional provision. - FY2025-H1MaterialisedAnnual report
「During the current interim consolidated accounting period, the Bank determined that credit risk remained high for borrowers in certain industries, including accommodations, that had been significantly affected by the economic impact of the spread of COVID-19. Treating these borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional ¥961 million allowance for loan losses.」
We determined that credit risk remained elevated in certain sectors, including lodging businesses affected by the infectious disease, and recognized an additional allowance for loan losses of ¥961 million. - FY2024MaterialisedAnnual report
「Treating the borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional ¥891 million allowance for loan losses.」
The Bank determined that the high level of credit risk had persisted in certain industries, including accommodations, affected by the infectious disease, and recognized an additional ¥891 million allowance for loan losses. - FY2024-Q2MaterialisedAnnual report
「Treating the borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional ¥802 million allowance for loan losses.」
The Bank determined that the high level of credit risk had persisted in certain industries, including accommodations, affected by COVID-19, and recognized an additional ¥802 million allowance for loan losses. - FY2024-Q1MaterialisedAnnual report
「During the current first-quarter consolidated accounting period, the Bank determined that the high level of credit risk had persisted for borrowers in certain industries, including accommodations, considered to have been significantly affected by the economic impact of the spread of COVID-19. Treating these borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional ¥661 million allowance for loan losses.」
The Bank determined that the high level of credit risk had persisted in certain industries, including accommodations, affected by the infectious disease, and recognized an additional ¥661 million allowance. - FY2023MaterialisedAnnual report
「The Bank determined that the high level of credit risk had persisted for borrowers in certain industries, including accommodations, considered to have been significantly affected by the economic impact of the spread of COVID-19. Treating these borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional ¥678 million allowance for loan losses.」
The Bank determined that the high level of credit risk had persisted in industries including accommodations affected by the infectious disease, and recognized an additional ¥678 million allowance. - FY2023-Q3MaterialisedAnnual report
「During the current third-quarter consolidated accounting period, the Bank determined that credit risk had increased for borrowers in certain industries, including accommodations, considered to have been significantly affected by the spread of COVID-19. Treating these borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional ¥602 million allowance for loan losses.」
The Bank determined that credit risk had increased in certain industries, including accommodations, affected by the infectious disease, and recognized an additional ¥602 million allowance for loan losses. - FY2023-Q2MaterialisedAnnual report
「Treating the borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional ¥606 million allowance for loan losses.」
The Bank determined that credit risk had increased in certain industries, including accommodations, significantly affected by COVID-19, and recognized an additional ¥606 million allowance for loan losses. - FY2023-Q1MaterialisedAnnual report
「During the current first-quarter consolidated accounting period, the Bank determined that credit risk had increased for borrowers in certain industries, including accommodations, considered to have been significantly affected by the spread of COVID-19. Treating these borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional ¥686 million allowance for loan losses.」
The Bank determined that credit risk had increased in certain industries, including accommodations, significantly affected by the infectious disease, and recognized an additional ¥686 million allowance for loan losses. - FY2022MaterialisedAnnual report
「The Bank also determined that credit risk had increased for borrowers in certain industries, including accommodations, considered to have been significantly affected by the spread of COVID-19. Treating these borrowers as having been downgraded in terms of borrower classification, the Bank made the necessary adjustments to the historical loss rate and recognized an additional allowance for loan losses. As a result, the allowance for loan losses at the end of the current consolidated fiscal year increased by ¥671 million, while ordinary income and net income before income taxes and other adjustments decreased by ¥671 million for the fiscal year.」
The Bank determined that credit risk had increased in industries including accommodations affected by the infectious disease, and recognized an additional ¥671 million allowance for loan losses. - FY2022-Q3MaterialisedAnnual report
「As a result, the allowance for loan losses at the end of the current third-quarter consolidated accounting period increased by ¥639 million, while ordinary income and quarterly net income before income taxes and other adjustments decreased by ¥639 million for the cumulative third-quarter period.」
The Bank determined that credit risk had increased in certain industries, including accommodations, significantly affected by the infectious disease, revised expected loss rates and recognized an additional ¥639 million allowance for loan losses. - FY2022-Q2MaterialisedAnnual report
「During the current interim consolidated accounting period, the Bank determined that credit risk had increased for borrowers in certain industries, including accommodations, that were considered to have been significantly affected by the spread of COVID-19. The Bank revised the expected loss rates for loans and other exposures to these borrowers and recognized an additional allowance for loan losses. As a result, the allowance for loan losses at the end of the current interim consolidated accounting period increased by ¥649 million, while ordinary income and interim net income before income taxes and other adjustments decreased by ¥649 million for the period.」
The Bank determined that credit risk had increased in certain industries, including accommodations, affected by the infectious disease, and revised expected loss rates and recognized an additional ¥649 million allowance for loan losses. - FY2021WorsenedAnnual report
「The bank had assumed at the end of the previous consolidated fiscal year that the economic impact of the spread of COVID-19 would continue for approximately the next year. However, in light of infection trends in Japan and overseas and other factors, this assumption was revised at the end of the current consolidated fiscal year to one that the impact would continue for several more years.」
The assumed duration of the economic impact of the infectious disease used in accounting estimates was extended by several more years. - FY2021-Q3RestatedAnnual report
「The impact on the quarterly consolidated financial statements for the current third quarter is limited, but the assumption involves uncertainty. If it takes longer than expected for the spread of the infectious disease to subside, future results may be affected by additional provisions for loan losses and impairment losses on fixed assets, or by the reversal of deferred tax assets.」
The impact of COVID-19 on accounting estimates was described as limited, while the possibility of additional losses and other effects if the situation persists was again disclosed. - FY2021-Q2RestatedAnnual report
「The bank assumes that the economic impact of the spread of COVID-19 will continue throughout the current consolidated fiscal year and, based on this assumption, makes judgments regarding estimates of future cash flows in impairment assessments for certain debtors for which the DCF method is used to calculate the allowance for loan losses, estimates of future cash flows in impairment assessments for fixed assets, and estimates of future taxable income in assessing the recoverability of deferred tax assets.」
The Bank continues to use the assumption that the economic impact of COVID-19 will continue during the current consolidated fiscal year when estimating the allowance for loan losses, impairment of fixed assets and deferred tax assets. - FY2021-Q1RestatedAnnual report
「The bank assumes that the economic impact of the spread of COVID-19 will continue for approximately the next year and, based on this assumption, makes judgments regarding estimates of future cash flows in impairment assessments for certain debtors for which the DCF method is used to calculate the allowance for loan losses, estimates of future cash flows in impairment assessments for fixed assets, and estimates of future taxable income in assessing the recoverability of deferred tax assets.」
The economic impact of COVID-19 is assumed to continue for approximately the next year for accounting estimates. There has been no material change in this assumption from the previous consolidated fiscal year. - FY2020First statedAnnual report
「If the number of infections among the Bank’s officers and employees increases as a result of the spread of COVID-19, novel influenza and other infectious diseases, business operations may be disrupted. In addition, if the impact extends to the real economy and markets, credit risk and market risk may increase, potentially adversely affecting the Bank’s operating performance and financial condition.」
The spread of infectious diseases was described for the first time as an independent major risk, indicating the potential effects on business operations, the real economy, markets and credit risk.