Risk of higher finance costs due to rising funding rates
First written in FY2017. 4 of 9 entries say "Materialised", first in FY2026-H1. Latest entry: 2026-07-31.
The whole theme swung hardest in 2025: 31 of 96 companies on the "Worse" side.
- 2026-07-31MaterialisedEarnings
「Operating expenses decreased by ¥2.3 billion year on year to ¥57.3 billion. Although financial expenses increased because of higher interest rates, the main factor was the absence of the cost of real estate sold from other operating expenses.」
The impact of higher interest rates continued to appear as a factor increasing financial expenses. - FY2026MaterialisedAnnual report
「Assuming that risk variables other than interest rates remain constant, if the benchmark interest rate is assumed to rise by 10 basis points (0.1%), profit before tax for the following consolidated fiscal year is estimated to decrease by ¥895 million as of the end of the current consolidated fiscal year, compared with a decrease of ¥774 million as of the end of the previous consolidated fiscal year,」
The impact of a 10-basis-point increase in interest rates on profit before tax for the following fiscal year increased from ¥774 million to ¥895 million. The risk of rising interest rates is emerging in the form of higher financial expenses. - 2026-05-15MaterialisedEarnings
「Operating expenses were ¥233.1 billion, an increase of ¥0.2 billion year on year, as financial expenses increased due to higher interest rates, while credit-related costs in the overseas business decreased.」
Higher interest rates increased financial expenses and contributed to the increase in full-year operating expenses. Financial expenses are also expected to increase in the next fiscal year. - FY2026-H1MaterialisedAnnual report
「Operating expenses increased by ¥13.0 billion year on year to ¥117.6 billion, mainly due to higher financial expenses resulting from rising interest rates, despite a decrease in bad debt-related expenses at overseas subsidiaries.」
Higher financial expenses due to rising interest rates emerged as an actual driver of operating expense growth, with financial expenses increasing by ¥2.046 billion year on year. - FY2023MitigatedAnnual report
「If the benchmark interest rate is assumed to rise by 10 basis points (0.1%), profit before tax for the following consolidated fiscal year is estimated to decrease by ¥596 million as of the end of the current consolidated fiscal year, compared with a decrease of ¥656 million as of the end of the previous consolidated fiscal year,」
The impact of a 10-basis-point increase in interest rates on profit before tax for the following fiscal year declined from ¥656 million in the previous year to ¥596 million. - FY2021Lower interest rate sensitivity, higher funding balanceAnnual report
「If the benchmark interest rate is assumed to rise by 10 basis points (0.1%), profit before tax for the following consolidated fiscal year is estimated to decrease by ¥759 million as of the end of the current consolidated fiscal year, compared with a decrease of ¥771 million as of the end of the previous consolidated fiscal year,」
The impact of a 10-basis-point increase in interest rates on profit declined from ¥771 million to ¥759 million, while the funding balance increased. - FY2020Slightly lower interest rate sensitivity, higher funding balanceAnnual report
「If the benchmark interest rate is assumed to rise by 10 basis points (0.1%), profit before tax for the following consolidated fiscal year is estimated to decrease by ¥771 million as of the end of the current consolidated fiscal year, compared with a decrease of ¥773 million as of the end of the previous consolidated fiscal year.」
The impact of a 10-basis-point increase on profit declined slightly from ¥773 million to ¥771 million, while borrowings, corporate bonds and commercial paper totaled ¥1.7348 trillion. - FY2019WorsenedAnnual report
「If the benchmark interest rate is assumed to rise by 10 basis points (0.1%), profit before tax for the following consolidated fiscal year is estimated to decrease by ¥773 million as of the end of the current consolidated fiscal year, compared with a decrease of ¥737 million as of the end of the previous consolidated fiscal year. If the benchmark interest rate is assumed to fall by 10 basis points (0.1%), profit before tax for the following consolidated fiscal year is estimated to increase by ¥773 million as of the end of the current consolidated fiscal year.」
The impact of a 10-basis-point increase in interest rates on profit before tax for the following fiscal year increased from ¥737 million in the previous year to ¥773 million. - FY2017First statedAnnual report
「The company is addressing interest rate fluctuation risk through the introduction of fixed-rate long-term borrowings and the use of financial derivatives. However, if funding costs rise in the future due to higher-than-expected interest rates, credit rating downgrades or other factors, financial expenses may increase. If the company cannot pass higher funding costs on to lending rates, business performance may be affected.」
The company identifies higher funding costs due to rising interest rates and credit rating downgrades as a risk, quantifying the impact of a 10-basis-point increase as a ¥672 million decrease in profit before tax for the following fiscal year.