Increasing credit costs due to rising non-performing loans and higher allowance provisions
First written in FY2017. 13 of 27 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2026.
Fukuoka Financial Group moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2019: 6 of 18 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Credit costs (①+②) amounted to negative ¥12,412 million.」
While credit costs decreased from ¥129 million in the previous fiscal year to negative ¥12,412 million, a ¥17,341 million provision expense for the allowance for loan losses and a ¥5,267 million net provision expense for individually assessed loan losses were also recorded. - 2026-05-13WorsenedRevision to earnings forecast
「貸倒引当金繰入額 5,253 17,341」
連結貸倒引当金繰入額が前年度の52億5,300万円から173億4,100万円へ増加し、信用コストも増加している。 - FY2025MitigatedAnnual report
「Credit costs (①+②) amounted to negative ¥129 million.」
Credit costs decreased from ¥15,828 million in the previous fiscal year to negative ¥129 million in the current fiscal year, including reversals. Improvement was reported in the actual results related to non-performing loan and allowance risks. - FY2024WorsenedAnnual report
「Credit costs (①+②) amounted to ¥15,828 million.」
Credit costs on a combined standalone basis for the banks increased from ¥3,146 million in the previous fiscal year to ¥15,828 million. Increases in provision expense for the allowance for loan losses and non-performing loan disposal costs were also disclosed. - FY2024-Q3WorsenedAnnual report
「Provision expense for allowance for loan losses ¥4,720 million ¥11,636 million」
The provision expense for the allowance for loan losses increased from ¥4,720 million in the same period of the previous year to ¥11,636 million. Provisioning as a factor contributing to higher credit costs has increased. - FY2024-Q2WorsenedAnnual report
「Provision expense for allowance for loan losses ¥8,428 million」
The provision expense for the allowance for loan losses increased from ¥1,640 million in the previous interim period to ¥8,428 million. Credit costs arising from an increase in non-performing loans and additional provisioning have increased. - FY2024-Q1WorsenedAnnual report
「Provision expense for allowance for loan losses ¥2,820 million」
The provision expense for the allowance for loan losses increased from ¥1,047 million in the same period of the previous year to ¥2,820 million. - FY2023WorsenedAnnual report
「Credit costs (①+②) amounted to ¥3,146 million.」
Credit costs on a combined standalone basis for the 3 banks increased from ¥1,546 million in the previous fiscal year to ¥3,146 million. Increases in non-performing loan disposal costs and provision expense for the allowance for loan losses were also disclosed. - FY2023-Q2WorsenedAnnual report
「Provision expense for allowance for loan losses ¥1,640 million」
The provision expense for the allowance for loan losses increased from ¥1,560 million in the previous interim period to ¥1,640 million. - FY2023-Q1WorsenedAnnual report
「Provision expense for allowance for loan losses — ¥ million ¥1,047 million」
Compared with the ¥1,160 million gain on reversal of the allowance for loan losses in the same period of the previous year, a ¥1,047 million provision expense for the allowance was recorded in the first quarter of the current fiscal year. - FY2022MitigatedAnnual report
「Credit costs remained low, partly because new corporate bankruptcies remained at a low level.」
After recording substantial credit costs through forward-looking provisioning and other measures in the previous fiscal year, credit costs remained low at ¥1,546 million on a combined standalone basis for the 3 banks in the current fiscal year. - FY2022-Q3WorsenedAnnual report
「Provision expense for allowance for loan losses — ¥ million ¥2,752 million」
While there was no provision expense for the allowance for loan losses in the same period of the previous year, a ¥2,752 million provision expense was recorded in the first 3 quarters of the current fiscal year. - FY2022-Q1MitigatedAnnual report
「Other ordinary income includes the following: Gain on reversal of allowance for loan losses ¥1,160 million」
While a ¥2,010 million provision expense for the allowance for loan losses was recorded in the same period of the previous year, the current quarter resulted in a ¥1,160 million reversal gain. - FY2021MitigatedAnnual report
「Credit costs resulted in a ¥272 million provision expense, a significant year-on-year decrease of ¥61,102 million, due to the absence of factors from the previous fiscal year, including the introduction of forward-looking provisioning.」
After recording credit costs of ¥61,374 million in the previous fiscal year, mainly from forward-looking provisioning, credit costs decreased to a ¥272 million provision expense in the current fiscal year. - FY2021-Q3MitigatedAnnual report
「Other ordinary income includes the following: Gain on reversal of allowance for loan losses ¥4,447 million」
There was no provision expense for the allowance for loan losses in the first 3 quarters of the current fiscal year, and a ¥4,447 million reversal gain was recorded. - FY2021-Q2MitigatedAnnual report
「Gain on reversal of allowance for loan losses ¥6,784 million」
Compared with the ¥3,340 million provision expense for the allowance for loan losses in the previous interim period, a gain on reversal of the allowance was recorded in the current interim period. - FY2021-Q1WorsenedAnnual report
「Other ordinary expenses include the following: Provision expense for allowance for loan losses ¥2,010 million」
While there was no provision expense for the allowance for loan losses in the first quarter of the previous fiscal year, a provision expense of ¥2,010 million was recorded in the first quarter of the current fiscal year. - FY2020MaterialisedAnnual report
「As it has become possible to reasonably estimate future risks, including the default rate based on economic forecasts, the method for estimating the allowance for loan losses was changed to introduce forward-looking provisioning, and an allowance for loan losses of ¥41.8 billion was recorded in the current fiscal year. In addition, an allowance of ¥8.7 billion was recorded for the impact of COVID-19, from the perspective of precautionary provisioning, primarily for industries where deterioration in business conditions is a concern.」
The increase in the allowance for loan losses previously identified as a factor contributing to higher credit risk has actually been recorded as forward-looking provisioning and precautionary provisioning in response to COVID-19. - FY2020-Q2WorsenedAnnual report
「Provision expense for allowance for loan losses ¥3,340 million」
The provision expense for the allowance for loan losses increased from ¥2,280 million in the previous interim period to ¥3,340 million. - FY2020-Q1MitigatedAnnual report
「Other ordinary income includes the following: Gain on reversal of allowance for loan losses ¥633 million」
A ¥633 million reversal gain, rather than a provision expense for the allowance for loan losses, was recorded, and no credit costs arising from an increase in the allowance were reported for the quarter. - FY2019-Q3WorsenedAnnual report
「Provision expense for allowance for loan losses ¥3,513 million」
The provision expense for the allowance for loan losses increased from ¥2,280 million in the previous interim period, and ¥3,513 million was recorded in the first 3 quarters of the current fiscal year. The provision identified as a factor contributing to higher credit costs has continued to arise. - FY2019-Q2MaterialisedAnnual report
「Other ordinary expenses include the following: Provision expense for allowance for loan losses ¥2,280 million」
Compared with the ¥5,698 million gain on reversal of the allowance for loan losses in the previous interim period, the company recorded a ¥2,280 million provision expense for the allowance in the current interim period. The provision for the allowance identified as a factor contributing to higher credit costs has actually arisen. - FY2019-Q1MitigatedAnnual report
「Other ordinary income includes the following: Gain on reversal of allowance for loan losses ¥1,733 million」
The allowance for loan losses, identified as a factor contributing to higher credit costs, resulted in a ¥1,733 million reversal gain in the first quarter of the current fiscal year. - FY2018MitigatedAnnual report
「Credit costs decreased by ¥1,519 million year on year, resulting in a reversal gain of ¥503 million.」
Regarding the risk of higher credit costs, it states that credit costs resulted in a reversal gain in the current fiscal year. - FY2018-Q3MitigatedAnnual report
「Other ordinary income includes the following: Gain on reversal of allowance for loan losses ¥3,769 million」
The allowance for loan losses, identified as a factor contributing to higher credit costs, had no provision expense in the first 3 quarters of the current fiscal year, and resulted in a ¥3,769 million reversal gain. - FY2018-Q2MitigatedAnnual report
「Consolidated ordinary income increased by ¥6.183 billion from the previous interim period, mainly due to reversals of allowance for loan losses and higher fee and commission income, to ¥122.177 billion.」
The allowance for loan losses, identified as a factor contributing to higher credit costs, resulted in a ¥5,698 million reversal gain in the current interim period. - FY2017First statedAnnual report
「Credit risk arising from deterioration in borrowers' financial conditions and other factors is the largest risk held by the Group's banking subsidiaries. Factors that may increase the credit costs arising from this credit risk, or credit-related expenses, include rising non-performing loans, higher allowance provisions and deteriorating conditions in specific industries.」
Positions credit risk as the largest risk and identifies non-performing loans, allowance provisions and deteriorating conditions in specific industries as factors that may increase credit costs.