Pressure on Financial Institutions to Transform Their Operations under Negative Interest Rates
First written in FY2016. 14 of 32 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
FIDEA Holdings moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 11 of 20 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2026Coexistence of wider deposit-loan interest margins from rate hikes and market valuation riskAnnual report
「In particular, if interest rate increases continue, they may adversely affect the performance and financial condition of the Group through deterioration in the valuation of securities held and increases in credit-related expenses associated with higher interest rates, among other factors.」
Although interest rate increases raised net interest income by widening the interest spread between loans and deposits, they are also explicitly identified as a risk through deterioration in the valuation of securities held and higher credit-related expenses. - FY2026-H1Increase in net interest income and decrease in net fees and commissionsAnnual report
「Net interest income for the six months ended 30 September was ¥13,816 million in the domestic banking business segment and ¥651 million in the international banking business segment, for a total of ¥14,467 million, an increase of ¥1,022 million from the previous interim consolidated accounting period. Net fees and commissions were ¥2,324 million in the domestic banking business segment and negative ¥1 million in the international banking business segment, for a total of ¥2,323 million, a decrease of ¥642 million from the previous interim consolidated accounting period.」
Net interest income increased by ¥1,022 million year on year, while net fees and commissions decreased by ¥642 million, indicating differing trends by source of revenue. - FY2025-H1Increase in the interest spread between loans and deposits and fee and commission income, with a slight decrease in net interest incomeAnnual report
「Despite increases in the interest spread between loans and deposits, net fees and commissions, and decreases in expenses, consolidated ordinary profit decreased by ¥249 million, or 16.3%, year on year to ¥1,272 million, due to decreases in interest and dividends on securities and gains and losses on Japanese government bonds and other bonds, as well as increases in credit-related expenses, among other factors」
The interest spread between loans and deposits and net fees and commissions increased, while net interest income decreased by ¥131 million year on year due to lower interest and dividends on securities and other factors, indicating mixed effects from low interest rates and market income. - FY2024-Q3WorsenedAnnual report
「Net interest income for the nine months ended 31 December was ¥18,893 million in the domestic banking business segment and ¥1,817 million in the international banking business segment, for a total of ¥20,710 million, a decrease of ¥4,147 million from the same period of the previous year.」
Net interest income decreased by ¥4,147 million year on year. Interest on loans increased, while interest and dividends on securities decreased from ¥11,586 million to ¥7,231 million. - FY2024-Q2WorsenedAnnual report
「Net interest income for the six months ended 30 September was ¥12,164 million in the domestic banking business segment and ¥1,412 million in the international banking business segment, for a total of ¥13,576 million, a decrease of ¥3,738 million from the same period of the previous year.」
Net interest income decreased by ¥3,738 million year on year, while interest on loans increased and interest and dividends on securities decreased from ¥8,448 million to ¥4,663 million. - FY2024-Q1WorsenedAnnual report
「Net interest income for the three months ended 30 June was ¥5,695 million in the domestic banking business segment and ¥740 million in the international banking business segment, for a total of ¥6,436 million, a decrease of ¥3,355 million from the same period of the previous year.」
Net interest income decreased by ¥3,355 million year on year. Interest on loans increased slightly, while interest and dividends on securities fell sharply from ¥5,277 million to ¥2,135 million. - FY2023-Q3Increase in net interest income and expansion of the increase despite lower interest on loansAnnual report
「Net interest income for the nine months ended 31 December was ¥23,040 million in the domestic banking business segment and ¥1,818 million in the international banking business segment, for a total of ¥24,858 million, an increase of ¥2,672 million from the same period of the previous year.」
Net interest income increased by ¥2,672 million year on year. Interest on loans decreased from ¥13,939 million to ¥13,391 million, while interest and dividends on securities increased from ¥7,942 million to ¥11,586 million. - FY2023-Q2Increase in net interest income and expansion of the increase despite lower interest on loansAnnual report
「Net interest income for the six months ended 30 September was ¥16,038 million in the domestic banking business segment and ¥1,276 million in the international banking business segment, for a total of ¥17,315 million, an increase of ¥2,508 million from the same period of the previous year.」
Net interest income increased by ¥2,508 million year on year. Interest on loans decreased from ¥9,345 million to ¥8,884 million, while interest and dividends on securities increased from ¥5,373 million to ¥8,448 million. - FY2023-Q1Funds investment income increased despite a decline in interest on loansAnnual report
「Net interest income for the three months ended 30 June was ¥9,143 million in the domestic banking business segment and ¥648 million in the international banking business segment, for a total of ¥9,791 million, an increase of ¥2,157 million from the same period of the previous year.」
Interest on loans decreased from ¥4,694 million in the same period of the previous year to ¥4,434 million, while interest and dividends on securities increased from ¥2,901 million to ¥5,277 million, resulting in a ¥2,157 million increase in overall net interest income. The decrease in interest on loans due to the low-interest-rate environment and the increase in net interest income from securities income are both noted. - FY2022WorsenedAnnual report
「Net interest income, consisting mainly of the interest spread between loans and deposits and interest and dividends on securities, decreased by ¥1,736 million from the previous fiscal year. In addition to the continued decline in the interest spread between loans and deposits due to lower loan yields, interest and dividends on securities decreased, mainly owing to distributions from investment trusts and gains and losses on cancellations.」
In addition to the narrower interest spread between loans and deposits due to lower loan yields, interest and dividends on securities also decreased, resulting in a ¥1,736 million year-on-year decline in net interest income. - FY2022-Q3Funds investment income continued to increase despite a decline in interest on loansAnnual report
「Net interest income for the nine months ended 31 December was ¥20,436 million in the domestic banking business segment and ¥1,749 million in the international banking business segment, for a total of ¥22,186 million, an increase of ¥611 million from the same period of the previous year.」
Interest on loans decreased from ¥14,674 million in the same period of the previous year to ¥13,939 million, while interest and dividends on securities increased from ¥7,258 million to ¥7,942 million, resulting in a ¥611 million increase in overall net interest income. - FY2022-Q2Funds investment income continued to increase despite a decline in interest on loansAnnual report
「Funds investment income for the 6 months ended the second quarter was ¥13,642 million in the domestic banking business and ¥1,163 million in the international banking business, for a total of ¥14,806 million, up ¥251 million from the 6 months ended the second quarter of the previous year.」
Interest on loans decreased from ¥9,766 million in the same period of the previous year to ¥9,345 million, while interest and dividends on securities increased from ¥5,091 million to ¥5,373 million, resulting in a ¥251 million increase in overall net interest income. - FY2022-Q1Funds investment income increased despite a decline in interest on loansAnnual report
「Funds investment income for the 3 months ended the first quarter was ¥7,087 million in the domestic banking business and ¥546 million in the international banking business, for a total of ¥7,633 million, up ¥567 million from the 3 months ended the first quarter of the previous year.」
Interest on loans declined from ¥4,837 million in the same period of the previous year to ¥4,694 million, while interest and dividends on securities increased from ¥2,401 million to ¥2,901 million, resulting in a year-on-year increase in funds investment income overall. - FY2021Interest and dividends on securities increased despite lower lending yieldsAnnual report
「Funds income, consisting mainly of the deposit-loan interest margin and interest and dividends on securities, increased by ¥3,093 million from the previous fiscal year. Although the deposit-loan interest margin continued to decline as lending yields fell, interest and dividends on securities increased, mainly due to distributions and cancellation gains and losses on investment trusts.」
Although the deposit-loan interest margin continued to decline as lending yields fell, funds income as a whole increased by ¥3,093 million from the previous fiscal year, mainly due to higher interest and dividends on securities, including distributions and cancellation gains and losses on investment trusts. - FY2021-Q3Funds income edged up despite a decline in interest on loansAnnual report
「Funds investment income for the 9 months ended the third quarter was ¥19,985 million in the domestic banking business and ¥1,589 million in the international banking business, for a total of ¥21,574 million, up ¥96 million from the 9 months ended the third quarter of the previous year.」
Funds investment income increased by ¥96 million year on year, while interest on loans declined from ¥15,063 million to ¥14,674 million and interest and dividends on securities increased. - FY2021-Q2Funds income increased despite a decline in interest on loansAnnual report
「Funds investment income for the 6 months ended the second quarter was ¥13,517 million in the domestic banking business and ¥1,036 million in the international banking business, for a total of ¥14,554 million, up ¥580 million from the 6 months ended the second quarter of the previous year.」
Interest on loans declined from ¥10,056 million in the same period of the previous year to ¥9,766 million, while interest and dividends on securities increased from ¥4,292 million to ¥5,091 million, resulting in an increase in funds investment income overall. - FY2021-Q1MaterialisedAnnual report
「(Interest on loans) 5,021 4,837」
Interest on loans declined from ¥5,021 million in the same period of the previous year to ¥4,837 million. Meanwhile, interest and dividends on securities increased, and funds income as a whole also increased, so the impact of the low-interest-rate environment should not be characterized as an across-the-board decline in overall income. - FY2020MaterialisedAnnual report
「Funds income, consisting mainly of the deposit-loan interest margin and interest and dividends on securities, declined by ¥993 million from the previous fiscal year. While the company continues to work to contain funding costs, including deposit yields, the deposit-loan interest margin has declined as lending yields have fallen.」
The decline in lending yields and the deposit-loan interest margin, consistent with the low-interest-rate environment, has appeared in actual results as a ¥993 million year-on-year decrease in funds income. - FY2020-Q3MaterialisedAnnual report
「Funds investment income for the 9 months ended the third quarter was ¥19,882 million in the domestic banking business and ¥1,595 million in the international banking business, for a total of ¥21,478 million, down ¥1,234 million from the 9 months ended the third quarter of the previous year.」
Funds investment income declined by ¥1,234 million year on year. Interest on loans and interest and dividends on securities were also below the previous year's levels, and the results reflect earnings pressure consistent with the low-interest-rate environment. - FY2020-Q2MaterialisedAnnual report
「Funds investment income for the 6 months ended the second quarter was ¥12,912 million in the domestic banking business and ¥1,061 million in the international banking business, for a total of ¥13,973 million, down ¥1,070 million from the 6 months ended the second quarter of the previous year.」
Funds investment income declined year on year. Interest on loans declined from ¥10,571 million to ¥10,056 million, and interest and dividends on securities declined from ¥5,190 million to ¥4,292 million. This disclosure does not establish a direct causal relationship with the negative-interest-rate policy. - FY2020-Q1MaterialisedAnnual report
「Consolidated ordinary income declined by ¥442 million, or 3.6%, year on year to ¥11,513 million, mainly due to decreases in interest on loans and interest and dividends on securities.」
Decreases in interest on loans and interest and dividends on securities have appeared in the first-quarter results as factors behind the year-on-year decline in ordinary income. - FY2019MaterialisedAnnual report
「Consolidated ordinary income declined by ¥2,142 million, or 4.1%, from the previous fiscal year to ¥48,883 million, mainly due to decreases in interest on loans, interest and dividends on securities, and other ordinary income.」
The decreases in interest on loans and interest and dividends on securities, consistent with the prolonged negative-interest-rate environment, have appeared in full-year results as a decline in ordinary income. - FY2019-Q3MaterialisedAnnual report
「(Interest and dividends on securities) 8,931 7,940」
Interest and dividends on securities declined from ¥8,931 million in the same period of the previous year to ¥7,940 million. The text does not explicitly state a direct causal relationship between this decrease and the negative-interest-rate policy. - FY2019-Q2MaterialisedAnnual report
「Consolidated ordinary income declined by ¥1,261 million, or 5.0%, year on year to ¥23,543 million, mainly due to decreases in funds investment income and reversal of allowance for loan losses.」
Funds investment income declined from ¥17,094 million in the same period of the previous year to ¥15,773 million, appearing in actual results as a factor behind the decline in ordinary income. This disclosure does not explicitly state a direct causal relationship with the negative-interest-rate policy. - FY2018WorsenedAnnual report
「The operating environment for regional financial institutions is becoming increasingly challenging as regional economies face structural issues associated with population decline, including the prolonged negative-interest-rate environment and changes in the competitive landscape resulting from entry by companies from other industries.」
Negative interest rates are described not merely as an impact of their introduction, but as a prolonged operating environment. - FY2018-Q3MaterialisedAnnual report
「Consolidated ordinary income declined by ¥1,144 million, or 2.9%, year on year to ¥37,440 million, mainly due to decreases in interest on loans and gains on sales of government and other bonds.」
The decrease in interest on loans, consistent with the impact of monetary easing and lower interest rates, is also cited in the 9-month results as a factor behind the year-on-year decline in ordinary income. - FY2018-Q2MaterialisedAnnual report
「(Interest on loans) 11,560 11,045」
Interest on loans declined from ¥11,560 million in the same period of the previous year to ¥11,045 million. This disclosure does not explicitly state a direct causal relationship with the negative-interest-rate policy. - FY2018-Q1MaterialisedAnnual report
「(Interest on loans) 5,794 5,507」
Interest on loans declined from ¥5,794 million in the same period of the previous year to ¥5,507 million. However, the company identified service transaction income and gains on sales of government and other bonds as the main factors behind the decrease in ordinary income for the quarter, so this disclosure does not establish a causal relationship with interest-rate policy. - FY2017MaterialisedAnnual report
「Funds income declined by ¥2,322 million from the previous consolidated fiscal year to ¥31,408 million, mainly because interest on loans declined due to lower yields, as well as a decrease in interest and dividends on securities.」
The impact of monetary easing and lower interest rates has appeared in full-year results as decreases in interest on loans and interest and dividends on securities. - FY2017-Q3MaterialisedAnnual report
「Consolidated ordinary income declined by ¥3,701 million, or 8.7%, year on year to ¥38,585 million, mainly due to a decrease in funds investment income, including interest on loans and interest and dividends on securities.」
The decrease in funds investment income, including interest on loans, consistent with the impact of monetary easing policies, has continued to appear in actual results as a decline in ordinary income for the 9 months ended the third quarter. - FY2017-Q1MaterialisedAnnual report
「Due in part to a decline in interest on loans resulting from monetary easing policies」
The decline in interest on loans resulting from monetary easing policies has appeared in actual results as a factor behind the decrease in ordinary income for the first quarter. - FY2016First statedAnnual report
「The introduction by the Bank of Japan of quantitative and qualitative monetary easing with negative interest rates is creating a need for transformation in financial institution management.」
The negative-interest-rate policy is described as an external factor requiring financial institutions to transform their management.