Increase in Credit Costs and Provisions for Loan Losses
First written in FY2017-Q2. 14 of 33 entries say "Worsened", first in FY2017. Latest entry: 2026-11-10.
The Nanto Bank moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2024: 6 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As a result, credit-related expenses increased by ¥122 million from the previous fiscal year to ¥2,880 million.」
While continuing customer support and credit management, standalone credit-related expenses increased by ¥122 million from the previous fiscal year due to downgrades of large exposures and other factors. - FY2026-H1WorsenedAnnual report
「Regarding credit-related expenses for the current interim consolidated accounting period, the Group thoroughly pursued activities to gain a deep understanding of customers’ businesses and worked to support their core operations and improve their performance. Provision reversals were recognized in the interim accounting period as a result of improved business conditions at counterparties, but credit-related expenses increased by ¥817 million year on year to ¥1,476 million due to an increase in loan write-offs and other factors.」
While continuing to support customers, standalone credit-related expenses increased by ¥817 million year on year to ¥1,476 million due to higher loan write-offs and other factors. - FY2025-H1WorsenedAnnual report
「Regarding credit-related expenses for the current interim accounting period, the Group thoroughly pursued activities to gain a deep understanding of customers’ businesses and worked to support their core operations and improve their performance. In the previous interim accounting period, provision reversals were recognized as a result of improved business conditions at counterparties. In the current interim accounting period, however, the provision for loan losses was recognized, among other factors, resulting in an increase of ¥2,457 million year on year to ¥659 million.」
Credit-related expenses increased from provision reversals of ¥2,445 million in the previous interim period to ¥659 million in the current interim period due to the provision for loan losses and other factors, an increase of ¥2,457 million year on year. - FY2024-Q3MitigatedAnnual report
「Credit-related expenses for the nine months ended 31 December decreased by ¥1,811 million year on year to ¥(1,622) million, as efforts to gain an in-depth understanding of customers’ businesses and provide core-business and performance-improvement support helped improve clients’ business conditions.」
Credit-related expenses decreased by ¥1,811 million year on year, resulting in net provision reversals of ¥1,622 million. The easing of the credit cost burden is described against a backdrop of improved business conditions at counterparties. - FY2024-Q2MitigatedAnnual report
「Credit-related expenses decreased.」
Credit-related expenses decreased from ¥96 million in the same period of the previous year to negative ¥1,667 million. The credit cost burden was eased by an increase in provision reversals and other factors. - FY2024-Q1MitigatedAnnual report
「Credit-related expenses decreased.」
Credit-related expenses decreased from ¥28 million in the same period of the previous year to negative ¥620 million. The credit cost burden in the current quarter was eased by an increase in provision reversals and other factors. - FY2023-Q3Decrease in non-performing loan disposals in the banking business and increase in credit costs in the leasing and other businesses continuedAnnual report
「In the leasing business, ordinary income increased by ¥383 million from the same quarter of the previous year to ¥7,403 million, as leasing sales and installment income increased. Meanwhile, ordinary expenses increased by ¥466 million to ¥7,180 million, as leasing costs, operating expenses and credit costs increased.」
The amount of non-performing loan disposals decreased in the banking business, while credit costs increased in the leasing business. In Other, increases in credit costs in the credit guarantee and credit card businesses were also reported, with trends differing by segment. - FY2023-Q2Decrease in non-performing loan disposals in the banking business and increase in credit costs in the leasing business occurred concurrentlyAnnual report
「Meanwhile, ordinary expenses increased by ¥861 million from the same quarter of the previous year to ¥30,614 million. Other ordinary expenses decreased due to lower operating expenses and a decrease in the amount of non-performing loan disposals, but other operating expenses increased due to higher funding costs and higher losses on sales of Japanese government bonds and other securities.」
In the banking business, other ordinary expenses decreased due to a decrease in the amount of non-performing loan disposals, while credit costs increased in the leasing business. Trends differed by credit cost item and segment. - FY2023-Q1MitigatedAnnual report
「Meanwhile, ordinary expenses increased by ¥849 million from the same quarter of the previous year to ¥16,295 million. Other ordinary expenses decreased due to a decrease in the amount of non-performing loan disposals and other factors, but other operating expenses increased due to higher losses on sales of Japanese government bonds and other securities.」
Other ordinary expenses decreased due to a decrease in the amount of non-performing loan disposals and other factors. Meanwhile, total ordinary expenses increased by ¥849 million year on year due to higher losses on sales of Japanese government bonds and other factors. - FY2022MitigatedAnnual report
「Provision for loan losses decreased by ¥1,450 million from the previous fiscal year to ¥2,528 million, mainly because the provision for loan losses decreased.」
Provision for loan losses decreased from ¥3,978 million in the previous fiscal year to ¥2,528 million, improving the credit cost burden. - FY2022-Q3Decrease in provision for loan losses and increase in loan write-offs occurred concurrentlyAnnual report
「Loan write-offs ¥651 million ¥971 million Losses on sales of stocks and other securities ¥2,320 million ¥648 million Provision for loan losses ¥2,729 million ¥284 million」
The provision for loan losses decreased from ¥2,729 million in the same period of the previous year to ¥284 million, while loan write-offs increased from ¥651 million to ¥971 million. The trends differed by credit-related expense item. - FY2022-Q2Provision for loan losses eliminated, while loan write-offs increasedAnnual report
「Loan write-offs ¥456 million ¥880 million Provision for loan losses ¥2,207 million —¥ million」
The provision for loan losses, which was ¥2,207 million in the same period of the previous year, was not recognized in the current interim period, while loan write-offs increased from ¥456 million to ¥880 million. The trends differed by credit-related expense item. - FY2022-Q1MitigatedAnnual report
「Provision reversals for loan losses —¥ million ¥336 million」
The provision for loan losses, which was ¥488 million in the same period of the previous year, was not recognized in the current quarter, while provision reversals of ¥336 million were recognized, easing the credit cost burden. Meanwhile, loan write-offs increased from ¥274 million to ¥604 million. - FY2021MitigatedAnnual report
「Provision for loan losses decreased by ¥3,535 million from the previous fiscal year to ¥3,787 million, mainly because loan write-offs and the provision for individually assessed loan losses decreased.」
Provision for loan losses decreased from ¥7,322 million in the previous fiscal year to ¥3,787 million, improving the credit cost burden. - FY2021-Q3WorsenedAnnual report
「Provision for loan losses ¥2,142 million ¥2,729 million」
The provision for loan losses increased from ¥2,142 million in the same quarter of the previous year to ¥2,729 million, indicating a higher credit cost burden. - FY2021-Q2WorsenedAnnual report
「Provision for loan losses ¥8 million ¥2,207 million」
The provision for loan losses increased from ¥8 million in the same period of the previous year to ¥2,207 million. An increase in non-performing loan disposals and other factors is also cited as a reason for the rise in ordinary expenses. - FY2021-Q1WorsenedAnnual report
「Meanwhile, ordinary expenses increased by ¥2,260 million from the same quarter of the previous year to ¥18,210 million, mainly because other operating expenses increased due to higher losses on sales of Japanese government bonds and other securities in the banking business, and other ordinary expenses increased due to higher credit costs.」
The increase in credit costs is again cited as a factor behind the rise in ordinary expenses. The provision for loan losses increased from ¥0 million in the same period of the previous year to ¥488 million. - FY2020-Q3WorsenedAnnual report
「Provision for loan losses ¥150 million ¥2,142 million Loan write-offs ¥852 million ¥1,192 million」
The provision for loan losses increased from ¥150 million in the same period of the previous year to ¥2,142 million, while loan write-offs increased from ¥852 million to ¥1,192 million. Credit-related loss charges increased year on year. - FY2020-Q2WorsenedAnnual report
「Loan write-offs ¥324 million ¥865 million」
Loan write-offs increased from ¥324 million in the same period of the previous year to ¥865 million. The increase in credit-related loss charges is reported as part of the results. - FY2020-Q1MitigatedAnnual report
「Provision reversals for loan losses ¥266 million ¥306 million」
Provision reversals for loan losses increased from ¥266 million in the same period of the previous year to ¥306 million, indicating the recognition of reversals related to credit costs. - FY2019-Q3WorsenedAnnual report
「In Other, ordinary income increased by ¥163 million from the same quarter of the previous year to ¥3,362 million, mainly because revenue increased in the credit card and real estate leasing and management businesses. Ordinary expenses increased by ¥39 million to ¥2,512 million, mainly because credit costs increased in the credit card business. As a result, segment profit (ordinary profit) increased by ¥124 million to ¥850 million.」
Credit costs increased in the credit card business, confirming the factor behind the increase that continued from the previous quarter. - FY2019-Q2WorsenedAnnual report
「Meanwhile, ordinary expenses increased by ¥820 million from the same quarter of the previous year to ¥28,860 million. Operating expenses decreased, but other operating expenses increased due to higher losses on sales of Japanese government bonds and other securities, and other ordinary expenses increased due to higher credit costs.」
The banking and securities businesses reported an increase in other ordinary expenses due to higher credit costs, indicating a return to an increasing-cost factor after the decreases and improvements through the previous quarter. - FY2019-Q1MitigatedAnnual report
「In Other, ordinary income increased by ¥55 million from the same quarter of the previous year to ¥1,111 million, mainly because revenue increased in the credit card business and other operations. Ordinary expenses decreased by ¥119 million to ¥865 million, mainly because credit costs decreased in the credit guarantee business. As a result, segment profit (ordinary profit) increased by ¥174 million to ¥245 million.」
The decrease in credit costs in the credit guarantee business is described. Provision reversals also increased from ¥87 million in the same period of the previous year to ¥266 million, indicating a continuing reduction in the credit cost burden. - FY2018MitigatedAnnual report
「Provision for loan losses decreased by ¥3,360 million from the previous fiscal year to ¥628 million, mainly because the provision for general loan losses decreased.」
Provision for loan losses decreased from ¥3,989 million in the previous fiscal year to ¥628 million, while provision reversals of ¥3,036 million were also recognized. The full-year results indicate an improvement in the credit cost burden. - FY2018-Q3MitigatedAnnual report
「Meanwhile, ordinary expenses decreased by ¥625 million from the same quarter of the previous year to ¥47,062 million. Other operating expenses increased due to higher losses on sales of Japanese government bonds and other securities, but other ordinary expenses decreased as a result of lower credit costs in the banking and securities businesses.」
Other ordinary expenses decreased as a result of lower credit costs, and the improvement in the credit cost burden continued. - FY2018-Q2MitigatedAnnual report
「Meanwhile, ordinary expenses decreased by ¥77 million from the same quarter of the previous year to ¥31,104 million, mainly because other ordinary expenses decreased as a result of lower credit costs, despite an increase in other operating expenses due to higher losses on sales of Japanese government bonds and other securities in the banking and securities businesses.」
Credit costs decreased, resulting in a decrease in other ordinary expenses. Provision reversals of ¥508 million were also recognized, indicating an improvement in the credit cost burden. - FY2018-Q1MitigatedAnnual report
「Other ordinary expenses decreased due to a decrease in the amount of non-performing loan disposals and other factors. However, other operating expenses increased due to higher losses on sales of Japanese government bonds and other securities, and operating expenses also increased. As a result, ordinary expenses increased by ¥1,052 million from the same quarter of the previous year to ¥13,940 million.」
The banking and securities businesses reported a decrease in the amount of non-performing loan disposals. Provision reversals for the first quarter amounted to ¥87 million. - FY2017WorsenedAnnual report
「Provision for loan losses increased by ¥2,658 million from the previous fiscal year to ¥3,989 million, mainly because the provision for general loan losses increased.」
Provision for loan losses increased from ¥1,330 million in the previous fiscal year to ¥3,989 million, specifically indicating a higher credit cost burden. - FY2017-Q3RestatedAnnual report
「Meanwhile, ordinary expenses increased by ¥1,965 million from the same quarter of the previous year to ¥47,688 million, mainly because other ordinary expenses increased as a result of higher credit costs, despite a decrease in operating expenses in the banking and securities businesses.」
The continued increase in credit costs is described as a factor behind the rise in ordinary expenses. The provision for loan losses was ¥1,745 million. - FY2017-Q2First statedAnnual report
「Meanwhile, ordinary expenses increased by ¥641 million from the same quarter of the previous year to ¥31,181 million, mainly because other ordinary expenses increased as a result of higher credit costs, despite a decrease in operating expenses in the banking and securities businesses.」
The increase in credit costs contributed to the rise in ordinary expenses. The provision for loan losses was ¥1,980 million, compared with ¥30 million in the same period of the previous year.