Pressure on Earnings from Low Interest Rates and Declining Investment Yields
First written in FY2017-Q2. 5 of 35 entries say "Worsened", first in FY2017-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2025: 6 of 18 companies on the "Worse" side.
5 other companies' latest entry also says "Other".
- FY2026Increase in both earnings and expenses in a rising-rate environmentAnnual report
「Ordinary income increased by ¥28,285 million from the previous consolidated fiscal year to ¥108,656 million, mainly due to higher interest income from loans and higher interest and dividends on securities, as well as increased gains on sales of stocks and other securities. Ordinary expenses increased by ¥24,047 million from the previous consolidated fiscal year to ¥86,204 million, mainly due to higher funding costs, including interest on deposits, and higher losses on sales of government bonds and other bonds.」
Against a backdrop of higher interest rates, interest income from loans and other sources increased, while funding costs, including interest on deposits, also increased. Net interest income was ¥55,024 million, and funding costs were ¥14,013 million. - FY2026-H1Increase in both investment income and funding costs in a rising-rate environmentAnnual report
「Ordinary income increased by ¥10,085 million from the previous interim consolidated fiscal period to ¥49,657 million, mainly due to higher interest income from loans and other sources and higher other ordinary income, including gains on sales of stocks and other securities. Ordinary expenses increased by ¥8,760 million from the previous interim consolidated fiscal period to ¥36,435 million, mainly due to higher funding costs, including interest on deposits, higher other operating expenses, including losses on sales of government bonds and other bonds, and higher operating expenses.」
Against a backdrop of higher interest rates, interest income from loans and other sources increased, while funding costs, including interest on deposits, also increased. Funding costs rose from ¥1,196 million in the interim period of the previous year to ¥6,075 million. - FY2025Increase in both investment income and funding costs in a rising-rate environmentAnnual report
「Ordinary expenses increased by ¥7,619 million from the previous consolidated fiscal year to ¥62,156 million, mainly due to higher funding costs, including interest on deposits, and higher operating expenses.」
Against a backdrop of higher policy and market interest rates, interest on loans and interest and dividends on securities increased, while funding costs, including interest on deposits, also increased from ¥620 million to ¥4,753 million. The disclosure shifted from earnings pressure under low interest rates to changes in both investment income and funding costs resulting from higher interest rates. - FY2025-H1Change in earnings environment following a policy-rate increaseAnnual report
「In financial markets, against a backdrop of economic recovery, the Nikkei Average reached the ¥42,000 level, a record high. The Bank of Japan raised its policy rate to 0.25% to address rising prices, but concerns about an overseas economic slowdown and other factors subsequently increased uncertainty around market interest rates and the economic outlook.」
The interest-rate environment shifted from the previous low-interest-rate environment to one that included a policy rate increase to 0.25%, while concerns about an overseas economic slowdown and other factors increased uncertainty around market interest rates and the outlook. - FY2024Increase in investment and fee income alongside decline in domestic investment incomeAnnual report
「As a result, total net interest income increased by ¥993 million from the previous consolidated fiscal year to ¥46,977 million, net fees and commissions income increased by ¥625 million to ¥8,686 million, and net other operating income increased by ¥671 million to a loss of ¥7,335 million.」
Total net interest income and net fees and commissions income increased, while the net loss from other operating income also narrowed. Meanwhile, net interest income in the domestic operations segment decreased by ¥52 million, with pressure from the interest-rate and bond investment environment coexisting with offsetting factors. - FY2024-Q3Increase in investment and fee income alongside decline in domestic investment incomeAnnual report
「As a result, total net interest income increased by ¥747 million year on year to ¥36,232 million, net fees and commissions income increased by ¥665 million to ¥6,181 million, and net other operating income increased by ¥622 million to a loss of ¥5,029 million.」
Total net interest income and net fees and commissions income increased year on year, while the net loss from other operating income also narrowed. Meanwhile, net interest income in the domestic operations segment decreased by ¥23 million year on year, with earnings pressure from the low-interest-rate and bond investment environment coexisting with offsetting factors. - FY2024-Q2Increase in investment and fee income alongside decline in domestic investment incomeAnnual report
「As a result, total net interest income increased by ¥227 million year on year to ¥23,888 million, net fees and commissions income increased by ¥413 million to ¥3,662 million, and net other operating income increased by ¥185 million to a loss of ¥3,279 million.」
Total net interest income and net fees and commissions income increased year on year, while the net loss from other operating income also narrowed. Meanwhile, net interest income in the domestic operations segment declined year on year, with earnings pressure from the low-interest-rate and bond investment environment coexisting with offsetting factors. - FY2024-Q1Increase in investment and fee incomeAnnual report
「As a result, total net interest income increased by ¥183 million year on year to ¥1,250 million, net fees and commissions income increased by ¥124 million to ¥1,552 million, and net other operating income increased by ¥597 million to a loss of ¥1,935 million.」
In the earnings mix under the low-interest-rate environment, net interest income and net fees and commissions income increased year on year, while the net loss from other operating income also narrowed. Earnings pressures remained, but some of the main income and expense items improved during the quarter. - FY2023-Q3WorsenedAnnual report
「In the domestic operations segment, net interest income decreased by ¥1,531 million year on year to ¥34,755 million, net fees and commissions income decreased by ¥1,137 million to ¥5,538 million, and net other operating income decreased by ¥3,091 million to a loss of ¥3,645 million.」
In the domestic operations segment, net interest income, net fees and commissions income, and net other operating income all declined year on year. In total, net other operating income was a loss of ¥5,652 million, with earnings pressure from losses on sales of bonds and other factors intensifying. - FY2023-Q2Lower investment and fee income alongside higher bond-sale lossesAnnual report
「In the domestic operations segment, net interest income decreased by ¥476 million year on year to ¥23,184 million, net fees and commissions income decreased by ¥585 million to ¥3,266 million, and net other operating income decreased by ¥1,998 million to a loss of ¥2,202 million. Ordinary expenses increased by ¥1,756 million year on year to ¥25,432 million, as increases in other operating expenses, mainly due to higher losses on sales of government bonds and other bonds, outweighed decreases in operating expenses and other ordinary expenses.」
With long-term interest rates remaining generally in the 0.2% range, net interest income and net fees and commissions income declined year on year, while higher losses on sales of government bonds and other bonds also pressured earnings. Meanwhile, ordinary income increased due to reversals of allowance for loan losses and gains on sales of stocks and other securities. - FY2023-Q1Increase in investment income alongside higher bond-sale lossesAnnual report
「Ordinary income increased by ¥1,925 million year on year to ¥18,451 million, mainly due to higher interest income from increased interest on deposits with banks and interest and dividends on securities, as well as higher other ordinary income from the recognition of reversals of allowance for loan losses and increased gains on sales of stocks and other securities.」
With long-term interest rates remaining generally in the 0.2% range, interest income increased due to higher interest on deposits with banks and interest and dividends on securities. Meanwhile, other operating expenses increased due to higher losses on sales of government bonds and other bonds, showing that the earnings factors in the low-interest-rate environment were mixed. - FY2022Increase in investment income despite lower yieldsAnnual report
「Despite continued declines in investment yields, net interest income increased by ¥1,279 million from the previous consolidated fiscal year to ¥48,336 million, mainly due to higher interest on deposits with banks and interest and dividends on securities.」
Although investment yields continued to decline, net interest income increased to ¥48,336 million due to higher interest on deposits with banks and interest and dividends on securities. Net fees and commissions income also increased to ¥9,046 million, with other earnings factors offsetting earnings pressure from low interest rates. - FY2022-Q3Offsetting earnings pressure through higher investment and fee incomeAnnual report
「Ordinary income increased by ¥1,780 million year on year to ¥49,744 million, mainly due to higher interest income and fees and commissions income.」
Amid continued low interest rates, net interest income increased by ¥1,026 million year on year, while net fees and commissions income also increased by ¥1,755 million. These increases drove a ¥1,780 million year-on-year increase in ordinary income. - FY2022-Q2Offsetting pressure through higher investment and fee incomeAnnual report
「Ordinary income increased by ¥864 million year on year to ¥32,849 million, as increases in interest income and fees and commissions income outweighed decreases in other operating income and other ordinary income, mainly due to lower gains on sales of securities.」
With long-term interest rates remaining generally near 0%, interest income increased by ¥144 million year on year and fees and commissions income increased by ¥1,672 million. Higher interest income and fees and commissions income offset the decline in gains on sales of securities and other income. - FY2022-Q1Offsetting pressure through higher investment and fee incomeAnnual report
「In financial markets, the Nikkei Average at times fell below ¥28,000 due to declines in U.S. stock prices and other factors, but remained around ¥29,000 owing to monetary easing by the Bank of Japan and the government's fiscal policies. Long-term interest rates also remained generally near 0%. Ordinary income increased by ¥249 million year on year to ¥16,526 million, as increases in interest income and fees and commissions income outweighed decreases in other operating income and other ordinary income, mainly due to lower gains on sales of securities.」
With long-term interest rates remaining generally near 0%, gains on sales of securities and other income declined, while ordinary income increased by ¥249 million year on year due to higher interest income and fees and commissions income. - FY2021Offsetting lower yields with higher balances and fee incomeAnnual report
「Net interest income was ¥47,056 million, almost unchanged from the previous year, as higher balances of securities and loans offset continued declines in investment yields. The Company actively promoted lending to individuals, mainly through housing loans, and supported customers' cash-flow management in response to the spread of COVID-19.」
Although investment yields continued to decline, net interest income remained almost unchanged from the previous year due to higher securities and loan balances. Net fees and commissions income also increased by ¥8,700 million, with higher balances and fee income offsetting earnings pressure from low interest rates. - FY2021-Q3Increase in investment income alongside decline in other incomeAnnual report
「Ordinary income decreased by ¥4,811 million year on year to ¥47,964 million, as decreases in other operating income and other ordinary income, mainly due to lower gains on sales of securities, more than offset increases in interest income and fees and commissions income.」
Interest income and fees and commissions income increased, while other income declined due to lower gains on sales of securities and other factors, resulting in a ¥4,811 million year-on-year decrease in ordinary income. The composition of earnings factors in the low-interest-rate environment differed from that of the previous quarter. - FY2021-Q2Increase in investment income alongside decline in other incomeAnnual report
「Ordinary income decreased by ¥2,683 million year on year to ¥31,985 million, as increases in interest income were more than offset by decreases in other operating income and other ordinary income, mainly due to lower income related to securities.」
Although interest income increased, ordinary income decreased by ¥2,683 million year on year due to lower income related to securities and other factors. Long-term interest rates remained generally in the 0.0% range. - FY2021-Q1RestatedAnnual report
「Ordinary income for the first quarter of the current consolidated fiscal year increased by ¥81 million year on year to ¥16,277 million, as increases in other operating income and other ordinary income, mainly from higher gains related to securities, outweighed decreases in interest income and fees and commissions income.」
Interest income and fees and commissions income continued to decline, but ordinary income increased by ¥81 million year on year due to higher income related to securities and other factors. Earnings pressure from low interest rates and lower investment yields continued to coexist with support from other income. - FY2020Pressure on earnings offset by other incomeAnnual report
「Ordinary income increased by ¥616 million from the previous consolidated fiscal year to ¥68,081 million, as increases in other operating income and other ordinary income, mainly from higher gains related to securities, outweighed decreases in interest income and fees and commissions income.」
Interest income and fees and commissions income continued to decline against a backdrop of low interest rates and lower investment yields, but ordinary income exceeded the previous year due to higher income related to securities and other factors. - FY2020-Q3Change in earnings driversAnnual report
「Although interest income decreased, ordinary income increased by ¥2,124 million year on year from the previous corresponding consolidated cumulative period to ¥52,775 million, owing to increases in other operating income and other ordinary income resulting mainly from higher income related to securities.」
Although lower interest income continued, increases in income related to securities and other factors more than offset the decline, and ordinary income increased by ¥2,124 million year on year. Pressure from low interest rates and lower investment yields coexisted with support from other earnings drivers. - FY2020-Q2RestatedAnnual report
「In financial markets, the Nikkei Stock Average was volatile amid heightened political and economic uncertainty overseas, falling temporarily to the ¥20,200 range. Long-term interest rates fell temporarily to -0.29%, partly because the Bank of Japan continued quantitative and qualitative monetary easing with yield curve control. Although interest income decreased, ordinary income increased by ¥838 million year on year from the previous corresponding consolidated cumulative period to ¥34,668 million, owing to increases in other operating income and other ordinary income resulting mainly from higher income related to securities.」
Although the decline in long-term interest rates and lower interest income continued, ordinary income increased year on year owing to higher income related to securities and other factors. - FY2020-Q1WorsenedAnnual report
「Although loan and deposit balances increased, ordinary income decreased by ¥1,342 million year on year from the previous corresponding consolidated cumulative period to ¥16,195 million, due mainly to lower interest income resulting from a decline in investment yields and lower other ordinary income resulting from lower gains on sales of stocks and other securities.」
In addition to lower investment yields, lower gains on sales of stocks and other securities also weighed on earnings, and ordinary income decreased by ¥1,342 million year on year. The earnings pressure from low interest rates and lower investment yields was quantified in the first quarter as well. - FY2019-Q3Change in earnings driversAnnual report
「Although interest income decreased due mainly to lower interest and dividend income on securities, ordinary income increased by ¥922 million year on year from the previous corresponding consolidated cumulative period to ¥50,650 million, owing to higher other ordinary income resulting from increases in fees and commissions and gains on sales of stocks and other securities.」
Although lower interest and dividend income on securities and other factors continued to reduce interest income, increases in fees and commissions and gains on sales of stocks and other securities more than offset the decline, and ordinary income increased by ¥922 million year on year. - FY2019-Q2Change in earnings driversAnnual report
「Although interest income decreased due mainly to lower interest and dividend income on securities, and other operating income decreased due mainly to lower gains on sales of Japanese government bonds and other securities, ordinary income increased by ¥821 million year on year from the previous corresponding consolidated cumulative period to ¥33,830 million, owing to higher other ordinary income resulting from increases in fees and commissions and gains on sales of stocks and other securities.」
Although lower interest and dividend income on securities and other factors continued to reduce interest income, increases in fees and commissions and gains on sales of stocks and other securities more than offset the decline, and ordinary income increased by ¥821 million year on year. - FY2019-Q1Change in earnings driversAnnual report
「Although interest income decreased due mainly to lower investment yields, ordinary income increased by ¥923 million year on year to ¥17,538 million because fees and commissions and gains on sales of stocks and other securities increased.」
Although lower investment yields continued to reduce interest income, the increase in fees and commissions and gains on sales of stocks and other securities more than offset the decline, and ordinary income increased by ¥923 million year on year. - FY2018RestatedAnnual report
「Although loan and deposit balances increased steadily, ordinary income decreased by ¥1,431 million from the previous consolidated fiscal year to ¥65,139 million, due mainly to lower interest income resulting from a decline in investment yields and lower gains on sales of Japanese government bonds and other securities.」
Despite increases in loans and deposits, lower investment yields reduced interest income and weighed on full-year earnings. - FY2018-Q3RestatedAnnual report
「Although loan and deposit balances increased steadily, ordinary income decreased by ¥1,371 million year on year to ¥49,728 million, due mainly to lower interest income resulting from a decline in investment yields and lower gains on sales of Japanese government bonds and other securities.」
Lower investment yields continued to reduce interest income during the nine-month period, and ordinary income decreased by ¥1,371 million year on year. The earnings pressure factors identified through the previous quarter continued to materialize. - FY2018-Q2WorsenedAnnual report
「Ordinary revenue decreased by ¥1.403 billion year on year to ¥33.008 billion. This reflected a decline in interest and dividend income due to lower investment yields and a decline in gains on sales of Japanese government bonds and other bonds due to reduced bond sales, despite steady growth in loan and deposit balances.」
Lower investment yields continued to reduce interest income, and ordinary income decreased by ¥1,403 million year on year. The earnings pressure from the low-interest-rate environment was quantified in the interim period as well. - FY2018-Q1RestatedAnnual report
「Although loan and deposit balances increased steadily, ordinary income decreased by ¥1,084 million year on year to ¥16,614 million, due mainly to lower interest income resulting from a decline in investment yields and lower gains on sales of Japanese government bonds and other securities.」
Lower investment yields continued to reduce interest income during the quarter, and ordinary income decreased by ¥1,084 million year on year. - FY2017WorsenedAnnual report
「Although loan and deposit balances increased steadily, ordinary income decreased by ¥3,956 million from the previous fiscal year to ¥66,570 million, due mainly to lower interest income resulting from a decline in investment yields.」
Lower investment yields continued to reduce interest income for the full year, and ordinary income decreased by ¥3,956 million year on year. - FY2017-Q3WorsenedAnnual report
「In financial markets, the yen weakened against the US dollar and the Nikkei Stock Average rose. Long-term interest rates moved out of negative territory and turned positive toward year-end. Ordinary income decreased by ¥1,200 million year on year to ¥51,099 million, due mainly to lower interest income resulting from a decline in investment yields and lower fees and commissions.」
Although long-term interest rates moved out of negative territory, lower investment yields continued to reduce interest income, and ordinary income decreased by ¥1,200 million year on year. - FY2017-Q2First statedAnnual report
「In financial markets, long-term interest rates fell to -0.30% in July, setting a new record low amid growing expectations of additional monetary easing by the Bank of Japan, but subsequently remained mostly in the -0.0% range. Ordinary income decreased by ¥628 million year on year to ¥34,411 million, due mainly to lower interest income resulting from a decline in investment yields and lower fees and commissions.」
Low interest rates and lower investment yields actually resulted in lower interest income and a year-on-year decline in ordinary income.