Increase in funding costs due to rising market interest rates
First written in FY2017. 7 of 11 entries say "Worsened", first in FY2024. Latest entry: 2026-07-31.
The whole theme swung hardest in 2020: 63 of 142 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「As of 31 March 2026 (the consolidated fiscal year-end), the total market risk exposure (estimated loss amount) for our long-term fixed-rate assets and long-term fixed-rate liabilities was ¥120 million, compared with ¥40 million in the previous consolidated fiscal year.」
Market risk exposure increased from ¥40 million in the previous fiscal year to ¥120 million. - 2026-04-28WorsenedEarnings presentation
「外貨金利は低下したものの、円金利の上昇等に伴い、前年比0.23ポイント増加の1.26％」
円金利の上昇等に伴い、資金原価率が前年より上昇した。 - FY2025WorsenedAnnual report
「As of 31 March 2025 (the consolidated fiscal year-end), the total market risk exposure (estimated loss amount) for our long-term fixed-rate assets and long-term fixed-rate liabilities was ¥40 million, compared with ¥26 million in the previous consolidated fiscal year.」
Market risk exposure increased from ¥26 million in the previous fiscal year to ¥40 million, indicating a quantitative increase in interest rate risk during a period of rising interest rates. The company also described its response through ALM and a high hedge ratio. - FY2025-H1WorsenedAnnual report
「In July, the Nikkei Stock Average reached a new all-time high, while the Bank of Japan's Monetary Policy Meeting at the end of the month decided to raise the policy rate and reduce the amount of government bond purchases, among other measures, as moves toward normalizing economic activity continued. At the same time, growing uncertainty over the outlook for the US economy and tightening monetary policy by the Bank of Japan led to a sharp appreciation of the yen, causing the Nikkei Stock Average to fluctuate significantly and market turmoil to spread.」
Against the backdrop of the Bank of Japan raising its policy rate and other factors, fluctuations in interest rates and foreign exchange rates, as well as market volatility, have emerged in a new form. - FY2024WorsenedAnnual report
「As of 31 March 2024 (the consolidated fiscal year-end), the total market risk exposure (estimated loss amount) for our long-term fixed-rate assets and long-term fixed-rate liabilities was ¥26 million, compared with ¥14 million in the previous consolidated fiscal year.」
The company cited interest rate rise risk against the backdrop of the Bank of Japan ending its negative interest rate policy and rising short- and long-term interest rates. Market risk exposure increased from ¥14 million in the previous fiscal year to ¥26 million. It also described mitigation measures involving a high hedge ratio and ALM. - FY2021MitigatedAnnual report
「As of 31 March 2021 (the consolidated fiscal year-end), the total market risk exposure (estimated loss amount) for our long-term fixed-rate assets and long-term fixed-rate liabilities was ¥5 million, compared with ¥8 million in the previous consolidated fiscal year.」
Market risk exposure for long-term fixed-rate assets and liabilities decreased from ¥8 million in the previous year to ¥5 million. - FY2019MitigatedAnnual report
「As of 31 March 2019 (the consolidated fiscal year-end), the total market risk exposure (estimated loss amount) for our long-term fixed-rate assets and long-term fixed-rate liabilities was ¥11 million, compared with ¥13 million in the previous consolidated fiscal year.」
Market risk exposure for long-term fixed-rate assets and liabilities decreased from ¥13 million in the previous year to ¥11 million. - FY2018MitigatedAnnual report
「As of 31 March 2018 (the consolidated fiscal year-end), the total market risk exposure (estimated loss amount) for our long-term fixed-rate assets and long-term fixed-rate liabilities was ¥13 million, compared with ¥20 million in the previous consolidated fiscal year.」
The company disclosed that market risk exposure measured using VaR decreased from ¥20 million in the previous year to ¥13 million. - FY2017First statedAnnual report
「Although we exercise thorough comprehensive management of operating assets and liabilities (ALM), a sharp rise in market interest rates could increase funding costs and affect the performance and other aspects of our group.」
Given its high interest-bearing debt ratio, the company identifies higher funding costs resulting from rising market interest rates as a risk.