The challenging earnings and investment environment caused by extremely low interest rates
First written in FY2016. 12 of 28 entries say "Materialised", first in FY2017-Q2. Latest entry: FY2026.
The Bank Of Saga moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
0 other companies' latest entry also says "Other".
- FY2026Higher interest rates increase both investment income and funding costsAnnual report
「As the Bank of Japan gradually normalizes monetary policy, market interest rates have continued to rise, and the transition from the long-standing low interest-rate environment to a "world with interest rates" is progressing.」
The transition to an environment of rising interest rates progressed, and net interest income increased from ¥28,303 million to ¥30,069 million, while funding costs increased from ¥3,761 million to ¥7,548 million. - 2026-05-12ReframedEarnings
「The transition from the prolonged low-interest-rate environment to a “world with interest rates” is progressing. As a result, each bank is reviewing its deposit and lending rates, and the operating environment is entering a major period of transition.」
The financial environment is described as a period of transition in which interest rates are rising and deposit and lending rates are being reviewed, rather than as a continuation of the low-interest-rate environment. - FY2026-H1Higher interest income on loans and deposits amid rising interest ratesAnnual report
「The financial industry is returning to a "world with interest rates," with banks moving to raise deposit and lending rates in response to policy rate hikes.」
The company has moved from its previous focus on the continuation of the low interest-rate environment to describing a return to a "world with interest rates" following policy rate hikes. During the interim period, interest income on loans increased from ¥10,489 million in the previous year to ¥13,442 million, while interest expense on deposits also increased from ¥352 million to ¥2,375 million. - FY2025Higher interest income amid rising interest ratesAnnual report
「The financial industry is entering a transition from the long-standing era of low interest rates to a "world with interest rates," with banks beginning to raise deposit and lending rates following the Bank of Japan's lifting of the negative interest rate policy.」
The company has moved from describing an environment premised on the continuation of negative interest rates to describing a transition to a "world with interest rates," where deposit and lending rates are rising. Net interest income increased from ¥25,612 million in the previous year to ¥28,303 million. - FY2025-H1Progress in raising deposit and lending ratesAnnual report
「The financial industry is moving toward a "world with interest rates," with banks beginning to raise deposit and lending rates, partly in response to the lifting of the negative interest rate policy.」
Regarding the environment following the lifting of the negative interest rate policy, the company states that banks have begun raising deposit and lending rates. Net interest income also increased from ¥12,203 million in the previous year to ¥14,048 million, indicating that earnings and funding costs are being affected by rising interest rates as well as by the previous continuation of low rates. - FY2024Lifting of the negative interest rate policy and transition to a world with interest ratesAnnual report
「The financial industry is moving toward a "world with interest rates," with the Bank of Japan taking steps in that direction, including its decision at a Monetary Policy Meeting to lift the negative interest rate policy.」
The company describes the transition from an earnings environment premised on the continued negative interest rate policy to a new financial environment, a "world with interest rates," following the lifting of the policy. - FY2024-Q3WorsenedAnnual report
「Ordinary expenses increased by ¥6,486 million year on year to ¥34,765 million, due to higher losses on sales of Japanese government bonds and other bonds resulting from the accelerated restructuring of the securities portfolio, as well as higher foreign-currency funding costs.」
Ordinary expenses increased by ¥6,486 million year on year due mainly to higher foreign-currency funding costs. Funding costs also increased from ¥1,612 million in the previous year to ¥2,509 million, and the greater funding burden was reflected in results. - FY2024-Q2Continued low interest rates, monitoring of policy and exchange-rate trends, and higher foreign-currency funding costsAnnual report
「In the financial industry, interest rates remained low in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place. Meanwhile, the impact of monetary policy and exchange-rate trends in Japan, the United States and Europe, among other factors, requires close monitoring. Ordinary expenses increased by ¥4,654 million year on year to ¥21,930 million, due mainly to higher losses on sales and foreign-currency funding costs associated with the above factors.」
While noting the continuation of the low interest-rate environment, the company identifies monetary policy and exchange-rate trends in Japan, the United States and Europe as matters requiring close monitoring. Funding costs increased from ¥747 million in the previous year to ¥1,730 million, and higher foreign-currency funding costs contributed to the increase in ordinary expenses. - FY2024-Q1Higher interest income and higher foreign-currency funding costsAnnual report
「Ordinary revenue increased by ¥2,172 million year on year to ¥13,993 million, mainly because interest income increased due to higher interest income on loans and interest and dividend income on securities, and other ordinary revenue increased due to higher gains on sales of shares and other securities. Ordinary expenses increased by ¥3,742 million year on year to ¥11,894 million, due mainly to higher foreign-currency funding costs and an increase in other ordinary expenses resulting from higher credit-related expenses and losses on sales of shares and other securities.」
Interest income increased due to higher interest income on loans and interest and dividend income on securities, while foreign-currency funding costs, credit-related expenses and losses on sales of shares and other securities also increased, reflecting higher funding and market-related costs in earnings. - FY2023Continued low interest rates and monitoring of rising market interest ratesAnnual report
「In the financial industry, the Bank of Japan raised the permitted fluctuation range for long-term interest rates, in a move viewed as an effective rate hike, but interest rates remained low in the corporate lending and personal loan markets.」
While the low interest-rate environment continued for corporate lending and personal loans, rising market interest rates following the Bank of Japan's expansion of the permitted fluctuation range for long-term interest rates were identified as a new matter requiring close monitoring. - FY2023-Q2Continued low interest rates and monitoring of policy rates and yen depreciationAnnual report
「In the financial industry, interest rates remained at low levels in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place. Going forward, the impact of widening interest-rate differentials between Japan and overseas markets following policy rate hikes in the United States and Europe, as well as exchange-rate trends resulting from the rapid depreciation of the yen, requires close monitoring.」
While noting the continuation of the extremely low interest-rate environment, the widening of interest-rate differentials between Japan and overseas markets following policy rate hikes in the United States and Europe and exchange-rate trends resulting from the rapid depreciation of the yen have been identified as new matters requiring close monitoring. - FY2022RestatedAnnual report
「In the financial industry, interest rates remained at extremely low levels in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place. Going forward, the trends in the interest-rate environment following the scaling back of monetary easing policies in the United States and Europe, as well as the impact of the situation in Ukraine, require close monitoring.」
While the extremely low interest-rate environment continues, changes in financial conditions resulting from the scaling back of monetary easing policies in the United States and Europe and the situation in Ukraine have been identified as new matters requiring close monitoring. - FY2022-Q2RestatedAnnual report
「In the financial industry, interest rates remained at extremely low levels in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place. The impact of monetary easing policies in Japan, the United States and Europe and emergency economic measures to prevent the spread of infectious diseases, among other factors, continues to require close monitoring.」
The company states that the extremely low interest-rate environment under the negative interest rate policy continues. Meanwhile, interest income increased during the interim period due to increases in interest income on loans and interest and dividend income on securities. - FY2021MaterialisedAnnual report
「In the financial industry, interest rates remained at extremely low levels in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place.」
The low interest-rate environment continued, and net interest income decreased from ¥23,115 million in the previous fiscal year to ¥23,080 million. The loan yield also declined from 1.05% to 0.96%, while the securities yield decreased from 0.92% to 0.77%. - FY2021-Q3MaterialisedAnnual report
「For the first three quarters of the fiscal year, net interest income was ¥17,379 million, net fees and commissions were ¥2,885 million, and other operating income was ¥1,142 million.」
Net interest income decreased from ¥17,567 million in the previous year to ¥17,379 million. While interest income declined year on year amid the low interest-rate environment, interest income on loans increased. - FY2021-Q2MaterialisedAnnual report
「In the financial industry, interest rates remained at extremely low levels in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place. The impact of monetary easing policies in Japan, the United States and Europe and the global spread of COVID-19, among other factors, continues to require close monitoring.」
The extremely low interest-rate environment continued, and net interest income for the interim consolidated accounting period decreased from ¥11,631 million in the previous year to ¥11,524 million. Interest and dividend income on securities also decreased from ¥2,567 million to ¥2,391 million, while interest income on loans increased. - FY2020MaterialisedAnnual report
「In the financial industry, interest rates remained at extremely low levels in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place.」
The low interest-rate environment continued, and net interest income decreased from ¥23,675 million in the previous fiscal year to ¥23,115 million. The loan yield also declined from 1.14% to 1.05%. - FY2020-Q2MaterialisedAnnual report
「In the financial industry, interest rates remained at extremely low levels in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place. The impact of monetary easing policies in Japan, the United States and Europe, among other factors, continues to require close monitoring.」
Amid the continuing low interest-rate environment, net interest income decreased by ¥133 million year on year to ¥11,631 million, while interest and dividend income on securities also decreased by ¥118 million year on year. - FY2020-Q1MaterialisedAnnual report
「For the first three quarters of the fiscal year, ordinary revenue increased by ¥207 million year on year to ¥10,144 million. Although interest income decreased, mainly due to a decline in interest and dividend income on securities, the increase in fees and commissions and the increase in other operating income accompanying higher gains on sales of Japanese government bonds and other bonds more than offset the decline.」
Interest and dividend income on securities decreased amid the low interest-rate environment, and interest income declined from ¥6,194 million in the previous year to ¥5,983 million. Increases in fees and commissions and gains on sales of Japanese government bonds and other bonds partly offset the decline. - FY2019-Q2MaterialisedAnnual report
「Meanwhile, in the financial industry, interest rates remained at extremely low levels in the corporate lending and personal loan markets amid a funds investment environment in which the negative interest rate policy remained in place. The impact of moves in the United States and Europe toward normalizing monetary policy continues to require close monitoring.」
The low interest-rate environment continued, and net interest income for the interim consolidated accounting period decreased by ¥264 million year on year to ¥11,764 million. Interest and dividend income on securities also decreased by ¥361 million year on year, while interest income on loans increased. - FY2018MaterialisedAnnual report
「In the financial industry, interest rates remained at extremely low levels in the corporate lending and personal loan markets amid the negative interest rate policy.」
The extremely low interest-rate environment under the negative interest rate policy continued. Although interest income on loans turned upward, the earnings environment remained challenging due to declines in interest and dividend income on securities and market-related income. - FY2018-Q2MaterialisedAnnual report
「Meanwhile, in the financial industry, interest rates on corporate loans and personal loans have remained at extremely low levels under an investment environment in which the negative interest-rate policy continues. Net interest income decreased by ¥696 million year on year to ¥12,017 million. Although interest and dividend income on securities decreased by ¥807 million year on year to ¥3,037 million, interest income on loans turned higher year on year for the first time since the interim period ended September 2008, mainly because the loans balance increased steadily.」
The extremely low interest-rate environment continued, and net interest income decreased by ¥696 million year on year, mainly due to a decline in interest and dividend income on securities. Meanwhile, interest income on loans turned upward against the backdrop of growth in the loan balance. - FY2018-Q1MaterialisedAnnual report
「In the financial industry, the investment environment has remained challenging due to the impact of the negative interest-rate policy and other factors, and interest rates on corporate loans and personal loans have remained at extremely low levels. For the first quarter of the current consolidated fiscal year, ordinary income decreased by ¥2,277 million year on year to ¥9,839 million, mainly because gains on sales of bonds, including Japanese government bonds, and income from financial derivatives declined as the Company revised its transaction structure in response to changes in market conditions since the second half of the previous fiscal year.」
While the extremely low interest-rate environment continued, ordinary income decreased by ¥2,277 million year on year. Investment income also declined from ¥6,628 million in the previous year to ¥6,234 million. - FY2017MaterialisedAnnual report
「In terms of earnings, ordinary income decreased by ¥4,812 million year on year to ¥43,508 million. This was mainly because gains on sales of bonds, including Japanese government bonds, decreased by ¥4,644 million from the previous fiscal year, among other factors, as the Company revised its transaction structure in response to changes in market conditions in the second half of the fiscal year amid an investment environment in which interest rates remained at extremely low levels.」
In the low-interest-rate environment, gains on bond sales and loan yields declined, affecting earnings through decreases in ordinary income and ordinary profit. - FY2017-Q3RestatedAnnual report
「In the financial industry, financial markets have remained relatively stable since the Bank of Japan introduced a new monetary easing framework. However, under an investment environment in which the negative interest-rate policy remains in place, interest rates on corporate loans and personal loans have remained at extremely low levels.」
The continuation of the negative interest-rate policy and the extremely low interest rates on corporate loans and personal loans are cited as ongoing challenges in the investment environment. - FY2017-Q2MaterialisedAnnual report
「Net interest income decreased by ¥359 million year on year to ¥12,713 million, mainly because interest income decreased as a result of lower yields on deposits and loans despite increases in their average balances year on year, in addition to a decrease in interest income on securities due to lower interest rates.」
The extremely low interest-rate environment was reflected in actual earnings through lower interest income on securities, lower deposit and loan yields, and a decline in net interest income. - FY2017-Q1RestatedAnnual report
「In the financial industry, interest rates have remained at extremely low levels following the introduction of the negative interest-rate policy, affecting corporate financing and the personal loan market.」
The statement reconfirms the extremely low interest-rate and challenging earnings environment caused by negative interest rates, and refers to the impact on corporate financing and the personal loan market. - FY2016First statedAnnual report
「Interest rates have remained at extremely low levels, partly due to the introduction of the negative interest-rate policy, and the challenging investment environment has continued.」
The low-interest-rate environment resulting from the negative interest-rate policy is identified as an external risk to banking-sector earnings and investment operations.