IR-FAQ
Important FAQ | Corporate Information | Financial Information | Stock Information
Financial Information
Q1 |
Can you give an overview of financial results in the consumer finance business?
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A1 |
AIFUL's non-consolidated financial results for the FY ended March 31, 2010 showed 124.7 billion yen in operating revenue, down 29.6% year-on-year which was driven by the fall in the balance of operating loans due to tighter credit criteria to prepare for the full enforcement of Japan's new Money Lending Business Act and a drop in interest following aggressive marketing of low interest products to new and prime customers.
Although personnel expenses and other expenses were dropped continuously, operating expense was 356.3billion yen (increased 97.9% year-on-year) caused by transfer to allowance related to interest repayments and doubtful accounts. As a result operating loss was 226.9billion yen and due to the extraordinary losses on the transfer of loans to subsidiaries related to the sale of the four consumer finance subsidiaries and expenses related to business structural business reforms, net loss was 261.4 billion yen.
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Q2 |
Can you outline financial results in the credit card business?
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A2 |
Although credit card shopping loans remained strong, LIFE's financial results for the FY ended March 31, 2010 recorded a 26.9% year-on-year decline to 73.3 billion yen in operating revenue (managed basis) due to the impact of such factors as the reduction in interest on sales in the loan business and the withdrawal from the Installment sales finance business.
Also despite the rising interest repayment expenses, because of the reductions in financial expenses and sales and general administrative expenses, operating expense was down 1.7% year-on-year to 96.1billion yen. As a result ordinary loss was 22.1 billion yen and net loss of 27.7 billion yen.
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Q3 |
Can you explain recent conditions in the business loan sector?
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A3 |
For the FY ended March 31, 2010, business loan subsidiary Businext recorded operating revenue of 8.8 billion yen, down 15.6% year-on-year due to the business loans for small and medium-sized enterprises sector is facing a tough environment with increasing numbers of corporate bankruptcies as a result of the deterioration in economic sentiment at small and medium-sized enterprises. Operating expenses decreased 16.0% year-on-year to 8.1 billion yen because of continuous drop in operating and sales expenses. Although ordinary income recorded 0.7 billion yen, due to partial reversals of deferred tax asset, net loss was 1.7 billion yen.
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Q4 |
Can you explain the current trends for bad debts?
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A4 |
AIFUL's non-consolidated bad debts for the FY ended March 31, 2010 decreased 47.1 billion yen from a year earlier to 176.0 billion yen. The sub-total for unsecured loans, a core product, decreased 24.9 billion yen from a year earlier to 84.2 billion yen.
The quality of claims has risen due to the implementation of tighter credit criteria as a strategy to prevent the incidence of bad debts in advance, and we believe that bad debts will decline over the medium to long term.
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Q5 |
Can you explain the current demand for interest repayments?
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A5 |
Interest refund for the FY2009 increased 4.8 billion yen (6.6%) from a year earlier to 77.7 billion yen on a consolidated basis, due to an increase in advertising in venues by attorneys and judicial scriveners and the rapid deterioration of the economy.
The AIFUL Group provided an additional 257.3 billion yen to allowances related to interest refunds (consisting of 206.8 billion yen for losses on interest refunds and 50.4 billion yen for loans abandoned because of interest refund claims) based on the high level of such claims.
As a result, allowances related to interest refunds totaled 314.8 billion yen, consisting of the allowance for losses on interest refunds totally 237.9 billion yen and the allowance for loan abandoned related to interest refund claims 103.5 billion yen.
For the detailed information about interest refund claims, please refer to the "Annual Report 2009".
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Q6 |
What is the current equity ratio?
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A6 |
The AIFUL Group's equity ratio stood at 8.1% on a consolidated basis and 15.8% on a non-consolidated basis at the end of FY2009.
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Q8 |
Can you describe your strategies to strengthen corporate governance?
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A8 |
The AIFUL Group believes that a vital part of corporate governance is practicing corporate management that combines transparency with fairness and efficiency. To achieve that, we have been working to establish Group organizations and structures as well as to ensure proper disclosure of information and to build relationships of trust with all of our stakeholders. In fiscal 2007, in addition to setting up a Risk Management Committee, the AIFUL Group sought to strengthen its corporate governance framework through such means as expanding the Compliance Monitoring Department, setting up a new Auditors Office, and introducing an executive officer system. For the details, please refer to .Corporate Governance.
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