Higher Financing Costs Due to Rising Interest Rates
First written in FY2017. 9 of 13 entries say "Worsened", first in FY2023-Q2. Latest entry: FY2026.
Seven Bank moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2023: 9 of 38 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The average balance of funding accounts decreased by ¥53,084 million to ¥1,022,577 million, while interest increased by ¥1,245 million to ¥3,344 million, and the yield was 0.32%.」
Although the average balance of funding accounts declined, funding interest increased from ¥2,098 million to ¥3,344 million, quantifying the increase in funding costs due to higher interest rates. - 2026-05-08WorsenedFinancial results presentation
「Profit declined mainly due to higher depreciation expense associated with ATM replacements and increased funding costs resulting from changes in the interest-rate environment」
Higher funding costs resulting from changes in the interest-rate environment contributed to the decline in non-consolidated ordinary profit. - FY2024WorsenedAnnual report
「Expenses also increased at consolidated subsidiary FCTI, Inc. due partly to higher funding costs accompanying the rise in US interest rates.」
The increase in funding costs due to higher interest rates continued at FCTI, resulting in a full-year ordinary loss. - FY2024-Q3WorsenedAnnual report
「FCTI, Inc.'s consolidated results for January through September 2023 were ordinary income of US$143.3 million, up 2.4% year on year, an ordinary loss of US$8.3 million, compared with an ordinary loss of US$1.5 million in the same period of the previous year, and a quarterly net loss of US$6.2 million, compared with a quarterly net loss of US$1.7 million, due mainly to higher funding costs resulting from policy rate increases.」
The increase in funding costs due to higher policy interest rates continued at FCTI, widening the loss from the same period of the previous year. - FY2024-Q2WorsenedAnnual report
「Due mainly to higher funding costs accompanying the rise in policy interest rates, ordinary revenue was US$94.8 million, up 2.8% year on year, ordinary loss was US$5.0 million, compared with ordinary profit of US$1.1 million in the same period of the previous year, and interim net loss was US$4.5 million, compared with interim net profit of US$0.9 million in the same period of the previous year.」
The increase in funding costs due to higher policy interest rates continued at FCTI, resulting in a shift from profit in the same period of the previous year to an ordinary loss and interim net loss. - FY2024-Q1WorsenedAnnual report
「Due mainly to higher funding costs accompanying the rise in policy interest rates, ordinary revenue was US$46.8 million, up 4.2% year on year, ordinary loss was US$2.9 million, compared with ordinary profit of US$0.8 million in the same period of the previous year, and quarterly net loss was US$2.4 million, compared with quarterly net profit of US$0.5 million in the same period of the previous year.」
The increase in funding costs due to higher interest rates, previously identified as a risk, continued at FCTI, resulting in a shift from profit in the same period of the previous year to a loss. - FY2023WorsenedAnnual report
「In the United States, funding costs are increasing due to higher US interest rates, but we will take measures to minimize the impact of interest rate markets, including reducing the cash held in ATMs.」
The increase in funding costs due to higher US interest rates continued to emerge as a full-year loss at FCTI. The company identified measures to reduce the cash held in ATMs as a response. - FY2023-Q3WorsenedAnnual report
「Due mainly to higher funding costs accompanying the rise in policy interest rates, ordinary revenue was US$139.9 million, down 12.0% year on year, ordinary loss was US$1.5 million, compared with ordinary profit of US$19.3 million in the same period of the previous year, and quarterly net loss was US$1.7 million, compared with quarterly net profit of US$18.8 million in the same period of the previous year.」
The increase in funding costs due to higher policy interest rates continued at FCTI, resulting in a shift from profit in the same period of the previous year to an ordinary loss and net loss. - FY2023-Q2WorsenedAnnual report
「Due mainly to higher funding costs accompanying the rise in policy interest rates, ordinary revenue was US$92.1 million, down 13.7% year on year, ordinary profit was US$1.1 million, down 91.4%, and interim net profit was US$0.9 million, down 92.9%.」
The increase in funding costs due to higher interest rates continued at FCTI, resulting in a significant contraction in profit. - FY2023-Q1MaterialisedAnnual report
「Due mainly to higher funding costs accompanying the rise in policy interest rates, ordinary revenue was US$44.9 million, down 14.5% year on year, ordinary profit was US$0.8 million, down 87.1%, and quarterly net profit was US$0.5 million, down 90.6%.」
The increase in funding costs due to higher interest rates, previously identified as a risk, materialized at FCTI. - FY2022RestatedAnnual report
「We are taking appropriate measures, including increasing funding at long-term fixed rates to mitigate the impact of interest rate fluctuations. However, if significant interest rate movements cause an unexpected increase in funding costs, our earnings and financial position may be affected.」
The increase in funding costs due to higher interest rates and the response of securing long-term fixed-rate funding are ongoing. - FY2018RestatedAnnual report
「We are taking appropriate measures to limit the impact of interest rate fluctuations, including increasing funding at long-term fixed interest rates. However, if substantial interest rate fluctuations result in an unexpected increase in funding costs, this could affect our operating results and financial position.」
The increase in funding costs due to higher interest rates and the response of securing long-term fixed-rate funding are ongoing. - FY2017First statedAnnual report
「We are taking appropriate measures to limit the impact of interest rate fluctuations, including increasing funding at long-term fixed interest rates. However, if substantial interest rate fluctuations result in an unexpected increase in funding costs, this could affect our operating results and financial position.」
The risk of higher funding costs due to substantial interest rate fluctuations was disclosed, with long-term fixed-rate funding presented as a countermeasure.