Deteriorating profitability as competition intensifies and interest margins narrow
First written in FY2017-Q1. 14 of 33 entries say "Materialised", first in FY2018-Q1. Latest entry: 2026-11-10.
The Nanto Bank moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2025: 12 of 24 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2026Increases in both lending interest income and deposit interest expenseAnnual report
「Although interest on deposits increased, the amount increased by ¥5,439 million year on year to ¥61,740 million, mainly because interest on loans increased.」
While higher interest on loans increased net interest income, interest on deposits also rose, with the impact of the interest-rate environment differing by line item. - FY2026-H1RestatedAnnual report
「Meanwhile, ordinary expenses increased by ¥4,375 million from the previous fiscal year to ¥44,116 million, mainly because operating expenses increased and funding costs rose as interest on deposits increased.」
The pattern of net interest income increasing while funding costs also rise due to higher interest on deposits continues. - FY2025-H1An increase in net interest income coexisted with an increase in funding costs.Annual report
「In the current interim consolidated accounting period, consolidated gross profit increased compared with the previous fiscal year because net interest income and net fees and commissions income increased, although operating expenses and credit-related expenses also increased.」
Net interest income increased by ¥5,861 million year on year, while funding costs also increased as interest on deposits rose, with the impact on the earnings environment differing by line item. - FY2024-Q3MaterialisedAnnual report
「In the current third quarter of the fiscal year (cumulative), operating results included an increase in gains and losses on equities and other securities and a decrease in credit-related expenses compared with the same quarter of the previous fiscal year, but net interest income decreased and operating expenses increased.」
Net interest income decreased by ¥3,311 million, from ¥35,313 million in the same period of the previous fiscal year to ¥32,002 million, with downward pressure on profitability related to yields and the funds investment environment reflected in results. - FY2024-Q2MaterialisedAnnual report
「In the current second quarter of the fiscal year (cumulative), operating results included an increase in other operating income and a decrease in credit-related expenses compared with the same quarter of the previous fiscal year, but net interest income, net fees and commissions income, and gains and losses on equities and other securities decreased, while operating expenses increased.」
Net interest income decreased by ¥2,683 million year on year, with downward pressure on profitability from yields, market conditions and other factors reflected in results. - FY2024-Q1MaterialisedAnnual report
「Net interest income and net fees and commissions income decreased from the same quarter of the previous fiscal year, but」
Net interest income decreased by ¥935 million year on year, and the downward pressure on profitability related to competition and the yield environment continues to be reflected in results. Meanwhile, ordinary income increased due to improved gains and losses on bonds, including Japanese government bonds. - FY2023-Q3The decrease in the domestic operations segment and increase in the international operations segment continued.Annual report
「Net interest income for the current third quarter of the fiscal year (cumulative) in the domestic operations segment decreased by ¥2,342 million from the cumulative third quarter of the previous fiscal year to ¥32,975 million, mainly because interest and dividends on securities declined as yields fell. In the international operations segment, net interest income increased by ¥1,186 million from the cumulative third quarter of the previous fiscal year to ¥2,340 million, mainly because interest and dividends on securities and interest on loans increased as balances and yields rose.」
Net interest income decreased by ¥2,342 million in the domestic operations segment, while it increased by ¥1,186 million in the international operations segment. The differing trends between the segments continue. - FY2023-Q2The decrease in the domestic operations segment and increase in the international operations segment continued.Annual report
「Net interest income for the current second quarter of the fiscal year (cumulative) in the domestic operations segment decreased by ¥731 million from the cumulative second quarter of the previous fiscal year to ¥22,158 million, mainly because interest and dividends on securities declined as yields fell. In the international operations segment, net interest income increased by ¥624 million from the cumulative second quarter of the previous fiscal year to ¥1,407 million, mainly because interest and dividends on securities and interest on loans increased as balances and yields rose. As a result, total net interest income decreased by ¥107 million from the cumulative second quarter of the previous fiscal year to ¥23,565 million.」
Net interest income decreased by ¥731 million in the domestic operations segment, while it increased by ¥624 million in the international operations segment, resulting in a ¥107 million decrease in total net interest income. The differing trends between the segments continued from the previous quarter. - FY2023-Q1A decrease in the domestic operations segment coexisted with an increase in the international operations segment.Annual report
「Net interest income for the current first quarter of the fiscal year (cumulative) in the domestic operations segment decreased by ¥445 million from the cumulative first quarter of the previous fiscal year to ¥11,444 million, mainly because interest and dividends on securities and other items declined. In the international operations segment, net interest income increased by ¥159 million from the cumulative first quarter of the previous fiscal year to ¥575 million, mainly because interest on loans and interest and dividends on securities increased. As a result, total net interest income decreased by ¥285 million from the cumulative first quarter of the previous fiscal year to ¥12,020 million.」
Net interest income decreased by ¥445 million in the domestic operations segment and increased by ¥159 million in the international operations segment. Total net interest income decreased by ¥285 million, with divergent trends between the segments. - FY2022MaterialisedAnnual report
「Total net interest income increased by ¥419 million year on year to ¥47,285 million.」
While total net interest income increased, the combined yield on interest-earning assets declined from 0.84% in the previous fiscal year to 0.77%, and the impact of lower yields continues to be reflected in results. - FY2022-Q3The increase in the domestic operations segment and decrease in the international operations segment continued.Annual report
「Net interest income for the current third quarter of the fiscal year (cumulative) in the domestic operations segment increased by ¥1,750 million from the cumulative third quarter of the previous fiscal year to ¥35,317 million, mainly because interest on deposits with banks, loans and securities increased as balances and yields rose. In the international operations segment, net interest income decreased by ¥327 million from the cumulative third quarter of the previous fiscal year to ¥1,154 million, mainly because interest on securities and other items declined as balances and yields fell.」
Net interest income increased by ¥1,750 million in the domestic operations segment, while it decreased by ¥327 million in the international operations segment. The differing trends between the segments continue. - FY2022-Q2An increase in the domestic operations segment coexisted with a decrease in the international operations segment.Annual report
「Net interest income for the current second quarter of the fiscal year (cumulative) in the domestic operations segment increased by ¥412 million from the cumulative second quarter of the previous fiscal year to ¥22,890 million, mainly because interest on loans and deposits with banks increased as balances rose. In the international operations segment, net interest income decreased by ¥233 million from the cumulative second quarter of the previous fiscal year to ¥782 million, mainly because interest on securities declined as balances and yields fell. As a result, total net interest income increased by ¥179 million from the cumulative second quarter of the previous fiscal year to ¥23,672 million.」
In the domestic operations segment, net interest income increased by ¥412 million due to higher interest on loans and deposits with banks, while in the international operations segment it decreased by ¥233 million as balances and yields fell. Total net interest income increased by ¥179 million. - FY2022-Q1MitigatedAnnual report
「Net interest income for the current first quarter of the fiscal year (cumulative) in the domestic operations segment increased by ¥1,466 million from the cumulative first quarter of the previous fiscal year to ¥11,890 million, mainly because interest on securities increased as investment balances and yields rose.」
In the domestic operations segment, net interest income increased by ¥1,466 million year on year due to higher investment balances and yields, mitigating the impact this quarter of the previously reported deterioration in profitability from lower yields. In contrast, net interest income declined in the international operations segment as yields fell, showing divergent trends between the segments. - FY2021WorsenedAnnual report
「In addition to market contraction caused by population decline and ageing, the operating environment is expected to change in ways that could significantly affect the customer and earnings bases, including digital payment of wages and lower interbank fees amid moves to ease regulations to advance a cashless society. This makes transformation of the earnings structure necessary.」
In addition to traditional competition and narrowing interest margins, factors affecting the earnings base, including demographic trends, digital wage payments and lower interbank fees, are becoming more concrete. - FY2021-Q3MaterialisedAnnual report
「In the international operations segment, interest and dividends on securities declined as balances and yields fell, resulting in interest income decreasing by ¥519 million from the cumulative third quarter of the previous fiscal year to ¥36,036 million.」
In the international operations segment, interest and dividends on securities declined as balances and yields fell. Meanwhile, total net interest income increased by ¥1,000 million due to lower funding costs, with the impact differing by segment and line item. - FY2021-Q2MaterialisedAnnual report
「In the international operations segment, net interest income decreased by ¥736 million from the cumulative second quarter of the previous fiscal year to ¥1,015 million, mainly because interest on securities declined as balances and yields fell.」
Lower yields reduced interest on securities in the international operations segment, resulting in a ¥736 million year-on-year decrease in net interest income. - FY2021-Q1MaterialisedAnnual report
「Net interest income for the current first quarter of the fiscal year (cumulative) in the domestic operations segment decreased by ¥280 million from the cumulative first quarter of the previous fiscal year to ¥10,423 million, mainly because interest on securities declined as yields fell. In the international operations segment, net interest income also decreased by ¥304 million from the cumulative first quarter of the previous fiscal year to ¥574 million, mainly because interest on securities declined as yields fell. As a result, total net interest income decreased by ¥585 million from the cumulative first quarter of the previous fiscal year to ¥10,997 million.」
The impact of declining yields, which had temporarily eased in the previous fiscal year, was reported again, and net interest income declined year on year in both the domestic and international operations segments. - FY2020-Q3MitigatedAnnual report
「Net interest income for the current third quarter of the fiscal year (cumulative) in the domestic operations segment increased by ¥3,041 million from the cumulative third quarter of the previous fiscal year to ¥31,498 million, mainly because interest on securities increased as yields rose.」
In the domestic operations segment, higher yields increased interest on securities, resulting in a ¥3,041 million year-on-year increase in net interest income. The impact of deteriorating profitability from lower yields was mitigated in the domestic operations segment this quarter. - FY2020-Q2MitigatedAnnual report
「Net interest income for the current second quarter of the fiscal year (cumulative) in the domestic operations segment increased by ¥1,878 million from the cumulative second quarter of the previous fiscal year to ¥20,709 million, mainly because interest on loans increased as balances rose and interest on securities increased as yields rose.」
In the domestic operations segment, net interest income increased by ¥1,878 million year on year due to higher loan balances and higher yields on securities. The segment had continued to experience deteriorating profitability from lower yields, but an increase in net interest income is reported this period. - FY2020-Q1MitigatedAnnual report
「Net interest income for the current first quarter of the fiscal year (cumulative) in the domestic operations segment increased by ¥685 million from the cumulative first quarter of the previous fiscal year to ¥10,703 million, mainly because interest on securities increased as yields rose.」
In the domestic operations segment, higher yields increased interest on securities, resulting in a ¥685 million year-on-year increase in net interest income. In contrast, net interest income declined in the international operations segment as yields fell, showing divergent trends between the segments. - FY2019-Q3MaterialisedAnnual report
「In the domestic operations segment, net interest income decreased by ¥4,872 million from the cumulative third quarter of the previous fiscal year to ¥28,457 million, mainly because interest on loans and securities declined as yields fell.」
Lower yields reduced interest on loans and securities, resulting in a ¥4,872 million year-on-year decrease in net interest income in the domestic operations segment. The impact of deteriorating profitability from narrower interest margins and lower yields continues to be reflected in results. - FY2019-Q2MaterialisedAnnual report
「Net interest income for the current second quarter of the fiscal year (cumulative) in the domestic operations segment decreased by ¥2,711 million from the cumulative second quarter of the previous fiscal year to ¥18,831 million, mainly because interest on loans declined as yields fell and interest on securities declined as balances decreased.」
In addition to lower interest on loans due to declining yields, interest income on securities also declined as securities balances decreased, resulting in a ¥2,711 million year-on-year decrease in net interest income in the domestic operations segment. - FY2019-Q1MaterialisedAnnual report
「In the domestic operations segment, net interest income decreased by ¥889 million year on year to ¥10,018 million, mainly because lending interest income declined due to lower yields and interest income on securities declined due to lower securities balances.」
The decrease in lending interest income due to lower yields and the decrease in interest income due to lower securities balances appeared in actual results, causing net interest income in the domestic operations segment to decline by ¥889 million year on year. - FY2018MaterialisedAnnual report
「Interest income decreased by ¥2,249 million year on year to ¥50,565 million.」
Although average loan balances increased, lending interest income decreased by ¥1,472 million year on year because of lower yields, and the impact of low yields on profitability is described as a full-year actual result. - FY2018-Q3MaterialisedAnnual report
「Net interest income for the nine months ended 31 December increased by ¥610 million year on year to ¥33,329 million in the domestic operations segment. Lending interest income declined because of lower yields, but deposit interest expense also decreased and interest income on securities increased.」
Lending interest income has declined because of lower yields, and the impact of intensified competition and narrower interest margins on profitability continues to appear in actual results. Meanwhile, total net interest income in the domestic operations segment increased by ¥610 million. - FY2018-Q2MaterialisedAnnual report
「Net interest income for the six months ended 30 September decreased by ¥161 million year on year to ¥21,542 million in the domestic operations segment, mainly because lending interest income declined as yields fell, despite higher balances.」
Although loan balances increased, lending interest income decreased because of lower yields, causing net interest income in the domestic operations segment to decline by ¥161 million year on year. The impact of intensified competition and narrower interest margins on profitability is described as an actual result. - FY2018-Q1MaterialisedAnnual report
「Although balances increased in the domestic operations segment, lending interest income decreased by ¥71 million year on year to ¥10,908 million, mainly because of lower yields.」
Although loan balances increased, lending interest income decreased because of lower yields, causing net interest income in the domestic operations segment to decline by ¥71 million year on year. The impact of lower yields on profitability is described as an actual result. - FY2017WorsenedAnnual report
「However, as competition in retail operations such as loans to small and medium-sized enterprises and individuals intensifies, maintaining and strengthening our banking group’s market position over the long term will require further improvements in the quality and competitiveness of financial services, as well as securing the human resources, organization, and systems to support them.」
In addition to the existing risk of intensified competition and narrower interest margins, specifies intensified competition in retail operations for small and medium-sized enterprises and individuals, and the need to secure human resources, organizational capabilities, and systems. - FY2017-Q3RestatedAnnual report
「Because the business environment surrounding our banking group is highly competitive, narrowing interest margins may cause profitability to deteriorate.」
The risk of deteriorating profitability due to intensified competition and narrower interest margins is reiterated with the same content. - FY2017-Q2RestatedAnnual report
「Because the business environment surrounding our banking group is highly competitive, narrowing interest margins may cause profitability to deteriorate.」
The risk of deteriorating profitability due to intensified competition and narrower interest margins is reiterated with the same content. - FY2017-Q1First statedAnnual report
「Because the business environment surrounding our banking group is highly competitive, narrowing interest margins may cause profitability to deteriorate.」
Identifies the possibility that intensified competition will narrow interest margins and deteriorate profitability as a risk.