Risks to Performance, Credit and Business Continuity from the Spread of COVID-19
First written in FY2020. 4 of 9 entries say "Restated". Latest entry: FY2024.
The Awa Bank moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2020: 12 of 31 companies on the "Worse" side.
6 other companies' latest entry also says "Reframed".
- FY2024ReframedAnnual report
「The risk related to infectious diseases is recognized as a significant risk from the perspective of business continuity. The Bank will prevent infections among customers and officers and employees from COVID-19, influenza and other infectious diseases, and work to maintain business continuity and financial functions.」
The risk disclosure has been reorganized from a focus on COVID-19 to the business continuity risks associated with infectious diseases generally, including influenza. - FY2024-Q2Overall recovery trend and continued credit risk in specific industriesAnnual report
「Regarding the economic impact of COVID-19, the Bank assumes that the overall economy will be on a recovery trend in fiscal 2023, but that the impact will remain significant in specific industries such as accommodation and food services. It therefore assumes that credit risk for borrowers in those industries will be higher than for borrowers in other industries.」
While the pandemic's economic impact is generally on a recovery trend, the Bank continues to assume that the impact remains significant in specific industries such as accommodation and food services and that relative credit risk is high. - FY2023-Q2RestatedAnnual report
「Regarding the economic impact of COVID-19, the Bank assumes that the overall impact in fiscal 2022 will be similar to or slightly lower than in the previous fiscal year, but that the impact will remain significant in specific industries such as accommodation and food services. It therefore assumes that credit risk for borrowers in those industries will be higher than for borrowers in other industries.」
The accounting estimate assumptions have been reaffirmed: while the pandemic's economic impact is expected to remain at or slightly below the previous fiscal year's level overall, it remains significant in accommodation, food services and other industries, where credit risk is high. - FY2022RestatedAnnual report
「The spread of COVID-19 is recognized as a significant risk from the perspective of business continuity. The Bank continues to give the highest priority to preventing infections among customers and employees, maintaining business continuity and financial functions, and supporting customers' cash flow.」
The pandemic is treated as a significant risk, and the Bank continues to prevent infections, maintain business continuity and financial functions, and support customers' cash flow. - FY2022-Q2RestatedAnnual report
「Regarding the economic impact of the spread of COVID-19, the Bank assumes that the economy will be on a recovery track in the second half of fiscal 2021 due to progress in vaccination and support under various policies, although concerns about a renewed spread of infections remain.」
The accounting estimate assumptions indicate an expected recovery trend in the second half of fiscal 2021 due to vaccinations and policy support, while concerns about a renewed spread of infections remain. - FY2021-Q3RestatedAnnual report
「However, as the end of the pandemic remained unforeseeable, the assumptions were changed during the second quarter of the current consolidated fiscal year to reflect the expectation that the impact would continue throughout fiscal 2020, while coordinated global monetary easing to stabilize the economy and financial markets would curb increases in interest rates and accommodative liquidity would continue to support financial markets for the time being.」
The disclosure reiterates the continued uncertainty over the end of COVID-19 and the assumptions regarding its impact on financial markets and the economy that were changed in the second quarter. It states that there are no new risks. - FY2021-Q2Change in assumptions and reduction in projected impactAnnual report
「The economic impact of the spread of COVID-19 had been assessed on the assumption that instability in financial markets, including the stock market, would continue until around autumn 2020 and that the global economy would then gradually recover. However, as the end of the pandemic remains unforeseeable, the assumptions were changed to reflect the expectation that the impact would continue throughout fiscal 2020, while coordinated global monetary easing to stabilize the economy and financial markets would curb increases in interest rates and that accommodative liquidity would continue to support financial markets for the time being. Based on these assumptions, fiscal 2020 net interest income is projected at ¥34.8 billion, a decrease of ¥900 million from the previous fiscal year, and net credit costs at ¥5.2 billion, an increase of ¥2.2 billion.」
Given that the end of the pandemic remains unforeseeable, the assumptions regarding the timing of recovery in financial markets were changed. Accordingly, the projected decline in net interest income was revised from ¥1.7 billion to ¥900 million, and the projected increase in net credit costs from ¥3.2 billion to ¥2.2 billion. - FY2021-Q1MaterialisedAnnual report
「Economic conditions in Tokushima Prefecture deteriorated rapidly, as did those in Japan, due to the spread of COVID-19. Ordinary income was ¥16.315 billion, down ¥689 million from the first quarter of the previous consolidated fiscal year, as interest income on loans increased due to growth in loans outstanding, while gains on sales of stocks and other securities declined. As a result, ordinary income was ¥2.941 billion, down ¥1.413 billion, and net income attributable to owners of the parent was ¥2.029 billion, down ¥1.075 billion, from the first quarter of the previous consolidated fiscal year.」
The rapid deterioration in the local economy due to the spread of the pandemic was disclosed, and its impact on performance was quantified as declines in ordinary income, ordinary profit and quarterly net income attributable to owners of the parent. - FY2020First statedAnnual report
「The spread of COVID-19 is recognized as a significant risk from the perspective of business continuity. The Bank is working to prevent infections among employees and is giving the highest priority to supporting customers' cash flow. It also expects net interest income to decline due to deterioration in market conditions, including lower interest rates, and credit-related expenses to increase as a result of the pandemic. Specifically, based on the assumption that instability in financial markets, including the stock market, would continue until around autumn 2020 and that the global economy would then gradually recover, the Bank projected fiscal 2020 net interest income of ¥34 billion, a decrease of ¥1.7 billion from the previous fiscal year, and net credit costs of ¥6.2 billion, an increase of ¥3.2 billion.」
The global spread of the pandemic was disclosed separately for the first time as a significant risk affecting business continuity, financial markets, net interest income, credit costs and employee infections. The projected impact on fiscal 2020 net interest income and net credit costs was also quantified.