Economic, Credit and Business Continuity Risks from COVID-19
First written in FY2020. 6 of 14 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2024.
The Keiyo Bank moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 11 of 30 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「Although Japan's economy was affected by higher prices, personal consumption recovered due to continued improvements in employment and income conditions and the reclassification of COVID-19 under the Infectious Diseases Act to Category 5, among other factors. Capital investment, which had been postponed during the pandemic, also showed signs of recovery as corporate earnings improved gradually.」
Following the reclassification of COVID-19 as a Category 5 disease, the disclosure described a recovery in personal consumption and capital investment, indicating that the pandemic's economic impact is easing. - FY2024-Q2MitigatedAnnual report
「Looking back on financial and economic conditions during the second-quarter cumulative consolidated period, Japan's economy saw a recovery in personal consumption, particularly services consumption, as economic activity moved toward normalization amid improving employment and income conditions, despite concerns about the effects of global monetary tightening and the outlook for the Chinese economy. Capital investment also showed signs of recovery due to improved corporate earnings and other factors.」
Despite the continuing impact of COVID-19, personal consumption and capital investment showed signs of recovery as economic activity normalized. The pandemic's impact is easing. - FY2024-Q1MitigatedAnnual report
「Although Japan's economy was affected by higher prices, personal consumption recovered due to continued improvements in employment and income conditions and the reclassification of COVID-19 under the Infectious Diseases Act to Category 5, among other factors. Capital investment, which had been postponed during the pandemic, also showed signs of recovery as corporate earnings improved gradually.」
COVID-19 was reclassified as a Category 5 disease under the Infectious Diseases Act, and the disclosure described a recovery in personal consumption and capital investment. Although economic risks from the pandemic remain, its impact is easing. - FY2023-Q2MitigatedAnnual report
「Looking back on financial and economic conditions during the second-quarter cumulative consolidated period, Japan's economy showed gradual signs of recovery in personal consumption as efforts to control the pandemic and normalize economic activity progressed, despite the continuing impact of COVID-19. Production also showed signs of improvement as the impact of shortages in the supply of materials eased.」
Although the impact of COVID-19 remained, efforts to control the pandemic and normalize economic activity progressed, and personal consumption and production showed signs of improvement. - FY2023-Q1MitigatedAnnual report
「Looking back on financial and economic conditions during the first-quarter cumulative consolidated period, Japan's economy saw signs of recovery in personal consumption, particularly services spending, as the severe economic conditions caused by COVID-19 eased.」
The severe economic impact of COVID-19 eased, and personal consumption, particularly services spending, showed signs of recovery. However, the disclosure did not state that the impact of the pandemic had disappeared. - FY2022Continued effects of the pandemic alongside partial improvementAnnual report
「Looking back on financial and economic conditions during the third-quarter cumulative consolidated period, Japan's economy remained in a difficult situation due to the impact of COVID-19. However, as social and economic activity moved toward normalization with the progress of vaccinations, personal consumption and production showed some signs of recovery.」
While the pandemic's impact on the economy continued, personal consumption and production showed some signs of recovery as vaccinations progressed and social and economic activity normalized. - FY2022-Q3MaterialisedAnnual report
「Looking back on financial and economic conditions during the third-quarter cumulative consolidated period, Japan's economy remained in a difficult situation due to the impact of COVID-19. However, as social and economic activity moved toward normalization with the progress of vaccinations, personal consumption and production showed some signs of recovery.」
The impact of COVID-19 continued to materialize, and the domestic economy remained in a difficult situation. Meanwhile, personal consumption and production showed some signs of recovery as vaccinations progressed. The disclosure also cited uncertain factors, including a renewed spread of infections due to variants. - FY2022-Q2MaterialisedAnnual report
「Looking back on financial and economic conditions during the second-quarter cumulative consolidated period, Japan's economy showed some signs of recovery in capital investment and exports. However, personal consumption remained weak due to the prolonged impact of COVID-19, and the outlook remained uncertain.」
While the prolonged impact of COVID-19 kept personal consumption weak, capital investment and exports showed some signs of recovery. The pandemic's impact on the economy continued to materialize. - FY2022-Q1MaterialisedAnnual report
「Looking back on financial and economic conditions during the first-quarter cumulative consolidated period, Japan's economy showed some signs of recovery in exports and production as overseas economies gradually recovered with the progress of vaccinations, despite the prolonged impact of COVID-19. Meanwhile, personal consumption, particularly services spending, stalled due to declarations of a state of emergency and other factors, and the outlook remained uncertain.」
While the impact of the prolonged COVID-19 pandemic caused personal consumption to stall due to declarations of a state of emergency and other measures, exports and production showed some signs of recovery. The pandemic's impact on the economy continued to materialize. - FY2021MaterialisedAnnual report
「Looking back on financial and economic conditions in fiscal 2020, Japan's economy remained in a difficult situation as the COVID-19 pandemic caused corporate production activity and household consumption activity to stagnate. After the state of emergency was lifted in May, exports and production showed some signs of recovery as economic activity gradually resumed. However, the resurgence of infections toward year-end weakened personal consumption, and the outlook remained uncertain.」
The disclosure stated that the pandemic continued to hamper production and consumption activity and weaken personal consumption, with its impact on economic activity having materialized. The estimate of the allowance for loan losses also assumed a certain impact on credit risk. - FY2021-Q3WorsenedAnnual report
「On 7 January 2021, a second state of emergency was also declared in Chiba Prefecture, and residents were asked to refrain from going out. The timing of the end of the pandemic remained unforeseeable. Although domestic and overseas economies and corporate activity are expected to recover gradually, we expect it will take time for the COVID-19 pandemic to subside and have assumed that credit risk related to loans and other assets will be affected to a certain extent.」
The disclosure stated that a second state of emergency had been declared in Chiba Prefecture due to COVID-19 and that the timing of its end remained unforeseeable. For accounting purposes, the Bank continued to assume a certain impact on credit risk related to loans and other assets. - FY2021-Q2MaterialisedAnnual report
「Looking back on financial and economic conditions during the second-quarter cumulative consolidated period, Japan's economy remained in a difficult situation, with corporate earnings falling substantially and capital investment showing weakness due to the effects of COVID-19. Meanwhile, as economic activity gradually resumed, exports and production showed some signs of recovery. Although domestic and overseas economies and corporate activity are expected to recover gradually, we expect it will take time for the COVID-19 pandemic to subside and have assumed that credit risk related to loans and other assets will be affected to a certain extent.」
While the pandemic continued to affect corporate earnings and capital investment, exports and production showed some signs of recovery. For accounting purposes, the Bank also assumed a certain impact on credit risk related to loans and other assets and recognized an allowance for loan losses. - FY2021-Q1MaterialisedAnnual report
「Looking back on financial and economic conditions during the first-quarter cumulative consolidated period, Japan's economy remained in an extremely difficult situation. Exports and production declined due to the spread of COVID-19, economic activity was restricted following the declaration of a state of emergency, and corporate earnings deteriorated.」
The disclosure stated that the COVID-19 pandemic had in fact caused declines in exports and production, restrictions on economic activity due to the state of emergency, and deterioration in corporate earnings. It also stated that no new risks or material changes had occurred in the business and other risks section. - FY2020First statedAnnual report
「The spread of COVID-19 may affect the Bank's performance, financial condition and operations if the risks described above, as well as other risks described in this section, including credit risk and market risk, materialize.」
For the first time, COVID-19 was expressly identified as an independent risk factor, and the disclosure covered stagnation in economic activity, the materialization of credit and market risks, and the potential impact on performance and financial condition. The main text already described declines in personal consumption and corporate production activity, as well as an increase in credit-related expenses.