Deteriorating Operating Environment Due to Low Yields, Population Decline and Negative Interest Rates
First written in FY2016. 22 of 35 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-07-30.
The Bank of Iwate moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 11 of 20 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- 2026-07-30MitigatedEarnings
「During the first quarter, ordinary income increased by ¥4,282 million year on year to ¥18,465 million, mainly because interest and dividend income from fund management increased, including interest on loans and interest and dividends on securities, and other ordinary income increased, including gains on sales of equities and other securities.」
Interest on loans and interest and dividends on securities increased, resulting in year-on-year growth in interest and dividend income. - FY2026MitigatedAnnual report
「Net interest income was ¥37.315 billion, up ¥6.076 billion from the previous fiscal year, because interest income from loans and interest and dividend income on securities increased.」
Against the interest-rate backdrop following the lifting of negative interest rates and additional rate hikes, net interest income increased as interest on loans and interest and dividends on securities rose, further easing earnings pressure from low yields. - 2026-05-14MitigatedRevisions to earnings forecasts
「Ordinary income increased by 10% or more from the previous fiscal year’s results on a non-consolidated basis, reflecting increases in interest and dividend income and gains on sales of equities and other securities.」
The increase in interest and dividend income was cited as a reason for the difference in ordinary income from the previous fiscal year’s results, indicating partial easing of earnings pressure from low yields and other factors. Gains on sales of equities and other securities were also a contributing factor. - FY2026-H1MitigatedAnnual report
「Net interest income was ¥18.777 billion, up ¥3.350 billion from the previous interim consolidated accounting period, mainly because interest income on loans and interest and dividend income on securities increased.」
Net interest income increased year on year due to higher interest income on loans and interest and dividend income on securities, partially easing the pressure on earnings from low yields and other factors in the first six months. - FY2025-H1MitigatedAnnual report
「Net interest income was ¥15.427 billion, up ¥1.857 billion from the previous interim consolidated accounting period, mainly because interest income on loans and interest and dividend income on securities increased.」
With the Bank of Japan's negative interest rate policy lifted and additional rate hikes implemented, net interest income increased year on year due to higher interest income on loans and interest and dividend income on securities, partially easing the pressure on earnings from low yields in the first six months. - FY2024MitigatedAnnual report
「Net interest income was ¥27.647 billion, up ¥1.705 billion from the previous fiscal year, because interest income from loans and interest and dividend income on securities increased.」
Net interest income increased due to higher interest income on loans and interest and dividend income on securities, and the yield on domestic banking operations also rose to 0.73%. Pressure on earnings from low yields was partially eased during the fiscal year. - FY2024-Q3MitigatedAnnual report
「Net interest income was ¥20.824 billion, up ¥1.207 billion from the first nine months of the previous fiscal year, mainly because interest income on loans and interest and dividend income on securities increased.」
Net interest income increased year on year due to higher interest income on loans and interest and dividend income on securities, partially easing the pressure on earnings from low interest rates and low yields in the first nine months. - FY2024-Q2MitigatedAnnual report
「Net interest income was ¥13.570 billion, up ¥483 million from the first six months of the previous fiscal year, mainly because interest income on loans increased.」
Net interest income increased year on year, and the increase in interest income on loans partially eased the pressure on earnings from low interest rates and low yields in the first six months. - FY2024-Q1MitigatedAnnual report
「Net interest income was ¥6.897 billion, up ¥39 million from the first quarter of the previous fiscal year, mainly because interest income on loans increased.」
Net interest income increased year on year, and the increase in interest income on loans partially eased the pressure on earnings from low interest rates and low yields in the current quarter. - FY2023WorsenedAnnual report
「The current environment surrounding regional financial institutions is one in which the traditional business model centered on deposits and lending is becoming increasingly unsustainable as low interest rates persist, while institutions are also required to respond to changes including entry into financial services by companies from other industries and the expansion of online banks.」
Regarding the earnings environment for the traditional business model against a backdrop of low interest rates and population decline, the company adds entry by companies from other industries and the expansion of online banks, describing the model as being in decline. - FY2023-Q3MaterialisedAnnual report
「Net interest income was ¥19.617 billion, down ¥522 million from the first nine months of the previous fiscal year, mainly because interest and dividend income on securities declined.」
The decline in interest and dividend income on securities was the primary factor behind the ¥522 million year-on-year decrease in net interest income, and pressure on earnings from low interest rates and low yields continued to be reflected in results. - FY2023-Q2MaterialisedAnnual report
「Net interest income was ¥13.087 billion, down ¥205 million from the first six months of the previous fiscal year, mainly because interest and dividend income on securities declined.」
Net interest income declined ¥205 million year on year due to lower interest and dividend income on securities, with pressure on earnings from low interest rates and low yields again reflected in results. - FY2023-Q1MitigatedAnnual report
「Net interest income was ¥6.858 billion, up ¥180 million from the first quarter of the previous fiscal year, mainly because interest and dividend income on securities increased.」
In the current quarter, net interest income increased year on year due to higher interest and dividend income on securities, temporarily easing the impact of pressure on earnings from low yields and other factors. - FY2022MaterialisedAnnual report
「Net interest income was ¥26.498 billion, down ¥682 million from the previous fiscal year, because interest income from securities and other sources declined.」
Pressure on earnings from the low-interest-rate and low-yield environment continued, and net interest income declined ¥682 million year on year. The yield on domestic banking operations also fell from 0.83% to 0.73%. - FY2022-Q3MaterialisedAnnual report
「Net interest income was ¥20.139 billion, down ¥495 million from the first nine months of the previous fiscal year, because interest and dividend income on securities declined.」
Pressure on earnings from the low-interest-rate and low-yield environment continued, and net interest income declined ¥495 million year on year through lower interest and dividend income on securities. - FY2022-Q2MaterialisedAnnual report
「Net interest income was ¥13.292 billion, down ¥214 million from the first six months of the previous fiscal year, mainly because interest and dividend income on securities declined.」
The decline in interest and dividend income on securities was the primary factor behind the ¥214 million year-on-year decrease in net interest income, with pressure on earnings from low interest rates and low yields continuing. - FY2022-Q1MaterialisedAnnual report
「Net interest income was ¥6.678 billion, down ¥293 million from the first quarter of the previous fiscal year, mainly because interest and dividend income on securities declined.」
The decline in interest and dividend income on securities was the primary factor behind the ¥293 million year-on-year decrease in net interest income, reflecting the continued pressure on earnings from low interest rates and low yields. - FY2021MaterialisedAnnual report
「Net interest income was ¥27.180 billion, down ¥1.606 billion from the previous fiscal year, because interest income from securities and other sources declined.」
Pressure on earnings from the low-interest-rate and low-yield environment continued. Net interest income declined ¥1.606 billion year on year, and the yield on domestic banking operations fell to 0.83%. - FY2021-Q3MaterialisedAnnual report
「Net interest income was ¥20.634 billion, down ¥1.433 billion from the first nine months of the previous fiscal year, because interest income from securities and other sources declined.」
Pressure on interest income from the low-interest-rate and low-yield environment continued, and net interest income declined ¥1.433 billion year on year through lower interest and dividend income on securities and other sources. - FY2021-Q2MaterialisedAnnual report
「Net interest income was ¥13.506 billion, down ¥1.175 billion from the first six months of the previous fiscal year, mainly because interest and dividend income on securities declined.」
Pressure on interest income from the low-interest-rate and low-yield environment continued, reflected in a year-on-year decline in net interest income through lower interest and dividend income on securities. - FY2021-Q1MaterialisedAnnual report
「Net interest income was ¥6.971 billion, down ¥527 million from the first quarter of the previous fiscal year, mainly because interest and dividend income on securities declined.」
Pressure on interest income from the low-interest-rate and low-yield environment continued, reflected in lower interest and dividend income on securities and a year-on-year decline in net interest income. - FY2020MaterialisedAnnual report
「The environment surrounding financial institutions remains challenging. In addition to the continuing decline in interest income due to the impact of negative interest rate policies, competition is intensifying as the further advance of digitalization encourages more companies from other industries to enter financial services.」
Net interest income was ¥28.786 billion, down ¥758 million year on year, while the yield on loans declined to 0.96%, reflecting pressure on earnings from low interest rates in full-year results. - FY2020-Q3MaterialisedAnnual report
「Net interest income was ¥22.067 billion, down ¥815 million from the first nine months of the previous fiscal year, because interest income from securities and other sources declined.」
Pressure on interest income from low yields and other factors continued, reflected in a year-on-year decline in net interest income. - FY2020-Q2MaterialisedAnnual report
「Net interest income was ¥14.681 billion, down ¥541 million from the first six months of the previous fiscal year, mainly because interest and dividend income on securities declined.」
Pressure on interest income from the low-interest-rate and low-yield environment continued, reflected in a year-on-year decline in net interest income through lower interest and dividend income on securities. - FY2020-Q1MaterialisedAnnual report
「Net interest income was ¥7.498 billion, down ¥680 million from the first quarter of the previous fiscal year, mainly because interest and dividend income on securities declined.」
Pressure on interest income from low yields and other factors continued, and net interest income declined ¥680 million year on year due to lower interest and dividend income on securities. - FY2019-Q3MaterialisedAnnual report
「Net interest income was ¥22.882 billion, down ¥162 million from the first nine months of the previous fiscal year, because interest income from loans and other sources declined.」
Pressure on earnings from low yields and other factors continued, and net interest income declined ¥162 million year on year. - FY2018MaterialisedAnnual report
「Ordinary income increased ¥1.301 billion year on year to ¥47.168 billion, as the increase in other ordinary income, including gains on sales of shares and other securities, more than offset the decline in interest income from loans and other sources resulting from lower funding yields.」
The decline in interest income from loans and other sources resulting from lower funding yields was reflected in full-year results. Net interest income was ¥30.014 billion, down ¥366 million year on year. - FY2018-Q3MaterialisedAnnual report
「Net interest income was ¥23.044 billion, down ¥16 million from the first nine months of the previous fiscal year, because interest income from loans and other sources declined.」
Pressure on earnings from low yields and other factors continued, and net interest income declined ¥16 million year on year. - FY2018-Q2MaterialisedAnnual report
「Net interest income was ¥15.074 billion, down ¥155 million from the first six months of the previous fiscal year, mainly because interest income on loans declined.」
Pressure on earnings from low yields and other factors was reflected in first-half results as a decline in interest income on loans and a ¥155 million year-on-year decrease in net interest income. - FY2018-Q1MaterialisedAnnual report
「Net interest income was ¥7.769 billion, down ¥171 million from the first quarter of the previous fiscal year, mainly because lower yields reduced interest income on loans.」
Pressure on earnings from low yields was also reflected in the current first quarter as a decline in interest income on loans and a ¥171 million year-on-year decrease in net interest income. - FY2017WorsenedAnnual report
「The net interest margin continues to narrow due to declining yields on loans and securities investments. In addition, concerns about market contraction resulting from population decline and the declining birthrate and aging population have led us to recognize that the operating environment surrounding the Bank has become increasingly challenging.」
The company describes both the narrowing net interest margin caused by low yields and market contraction resulting from population decline and the declining birthrate and aging population, stating that operating conditions have become increasingly challenging. - FY2017-Q3MaterialisedAnnual report
「Net interest income was ¥23.060 billion, down ¥1.111 billion from the first nine months of the previous fiscal year, mainly because lower yields reduced interest income from loans and other sources.」
Pressure on earnings from low yields is reflected in results for the first nine months as declines in interest income from loans and other sources and a year-on-year decrease in net interest income. - FY2017-Q2MaterialisedAnnual report
「Net interest income was ¥15.229 billion, down ¥826 million from the first six months of the previous fiscal year, mainly because lower yields reduced interest income on loans.」
Pressure on earnings from low yields continued to be reflected in first-half results as declines in interest income on loans and net interest income. - FY2017-Q1MaterialisedAnnual report
「Net interest income was ¥7.940 billion, down ¥189 million from the first quarter of the previous fiscal year, mainly because lower yields reduced interest income on loans.」
Pressure on earnings from low yields is reflected in results as declines in interest income on loans and net interest income. - FY2016First statedAnnual report
「Operating conditions are becoming increasingly challenging due to declining yields on loans and securities investments, market contraction resulting from population decline, and the Bank of Japan's introduction of negative interest rates.」
The company describes changes in the operating environment that had already emerged as the background to the formulation of its new medium-term management plan.