The 3rd Quarter of FY 2024
Financial Results Presentation
Japan Securities Finance Co., Ltd.
February 14, 2025
This document has been translated from the Japanese original for reference purposes only. Although Japan Securities Finance intends this to serve as a faithful translation of the Japanese original, we do not guarantee the accuracy and correctness of the translation and encourage you to refer to the Japanese original.
Table of Contents
Overview of Financial Results for the 1st – 3rd Quarter of FY 2024 | P ３ - ９ | |
| １．Executive summary (Consolidated) | Ｐ３ |
２．Summary Financial Results for the 1st - 3rd Quarter of FY 2024 | Ｐ４ | |
３．Summary Financial Results for the 1st - 3rd Quarter of FY 2024 (Non-Consolidated) | Ｐ５ | |
４．Gross Profit by Business (Non-Consolidated) | Ｐ６ | |
| ５．Summary of Financial Results for the 1st - 3rd Quarter of FY 2024 (JSF Trust Bank） | Ｐ７ |
６．Estimated Figures FY 2024 | Ｐ８ | |
７．Shareholder Returns in FY 2024 | Ｐ９ | |
(Appendix) | P 10 - 24 |
2
1. Executive Summary (Consolidated)
(¥ mn) | 3rd Quarter of | YoY Chg. | % YoY Chg. | Highlight |
FY 2024 | ||||
Operating | 9,646 | +530 | +5.8% | Showed steady performance in margin loan, |
profit | and security financing such as equity repo | |||
transactions. | ||||
Ordinary | 10,450 | +714 | +7.3% |
profit | |||
Profit | The gains on the sale of real estate held by the | |||
attributable to | 8,840 | +1,779 | +25.2% | consolidated subsidiary and on the sale of |
owners of | unlisted stocks held by JSF were recorded as | |||
parent | extraordinary income. |
Copyright © Japan Securities Finance Co., Ltd. All Rights Reserved. | 3 |
2. Summary Financial Results for the 3rd Quarter of FY2024
Consolidated | Non-consolidated | |||||||||||||
(¥ mn) | JSF | JSF Trust Bank | Nihon Building | |||||||||||
3rd Quarter of | YoY Chg. | % YoY Chg. | ||||||||||||
FY 2024 | YoY Chg. | YoY Chg. | YoY Chg. | |||||||||||
Operating revenues | 37,140 | +5,634 | (+17.9%) | 33,092 | +4,478 | |||||||||
(Except premium charges) | ||||||||||||||
3,590 | +1,191 | 924 | +12 | |||||||||||
Including premium | 40,046 | +2,834 | (+7.6%) | 35,998 | +1,677 | |||||||||
charges | ||||||||||||||
Operating expenses | 22,019 | +5,112 | (+30.2%) | 20,999 | +4,075 | |||||||||
(Except premium charges) | ||||||||||||||
1,176 | +1,093 | 17 | -3 | |||||||||||
Including premium | 24,907 | +2,295 | (+10.2%) | 23,887 | +1,257 | |||||||||
charges | ||||||||||||||
General & | 5,492 | +8 | (+0.2%) | 4,321 | -200 | 996 | +184 | 478 | +27 | |||||
administrative expenses | ||||||||||||||
Operating profit | 9,646 | +530 | (+5.8%) | 7,789 | +620 | 1,416 | -86 | 428 | -12 | |||||
Ordinary profit | 10,450 | +714 | (+7.3%) | 9,349 | -153 | 1,418 | -86 | 569 | +18 | |||||
Gain or loss in | 460 | +112 | (+32.1%) | |||||||||||
equity-method | ||||||||||||||
Extraordinary | 1,828 | +1,810 | (―) | 664 | +646 | ― | (―) | 1,163 | ＋1,163 | |||||
profit or loss | ||||||||||||||
Profit attributable to | 8,840 | 7,608 | 980 | 1,139 | ||||||||||
owners of parent /Net | +1,779 | (+25.2%) | +130 | -60 | +775 | |||||||||
income | ||||||||||||||
4 | ||||||||||||||
Copyright © Japan Securities Finance Co., Ltd. All Rights Reserved. |
3. Summary Financial Results for the 3rd Quarter of FY2024 (Non-Consolidated)
Japan Securities Finance
（Non-consolidated）
(¥ mn) | 3rd Quarter of | YoY Chg. | % YoY | |||||
FY 2024 | Chg. | |||||||
Operating revenues *1 | 33,092 | +4,478 | (+15.7%) | |||||
Operating expenses *1 | 20,999 | +4,075 | (+24.1%) | |||||
Gross profit | 12,110 | +420 | (+3.6%) | |||||
Margin loan business *1 | 3,196 | +412 | (+14.8%) | |||||
Securities financing *2 | 5,365 | -576 | (-9.7%) | |||||
Others mainly securities investment | 3,548 | +584 | (+19.7%) | |||||
（ | ） | |||||||
General & administrative expenses | 4,321 | -200 | (-4.4%) | |||||
Operating profit | 7,789 | +620 | (+8.6) | |||||
Ordinary profit | 9,349 | -153 | (-1.6%) | |||||
Extraordinary | 664 | +646 | (―) | |||||
profit or loss | ||||||||
Net income | 7,608 | +130 | (+1.7%) | |||||
*1 Excluding premium charge
*2 Equity repo, Bond repo and gensaki transactions, Loans for negotiable margin transactions, General stock lending, Retail loans
Key Points
●Gross profit
- Exceeded previous year by 3.6% due to increased demand for funds by steady stock market development and rising market interest rates.
- In securities investment, implemented carry revenue accumulation and the portfolio substitution.
●Ordinary profit
- Dividends from consolidated subsidiaries decreased by ¥872 million YoY, as JSF received dividends based on profits for FY 2023 in two installments. It had no impact on consolidated results because of consolidation eliminations.
Copyright © Japan Securities Finance Co., Ltd. All Rights Reserved. | 5 |
4. Gross Profit by Business (Non-Consolidated)
(¥ mn)
Type of transaction
Margin loan business
(Margin loan/Stock loan)
Equity repo transactions
Securities | Bond repo and |
gensaki transactions | |
financing | Loans for negotiable |
margin transactions | |
General stock lending | |
Loans to retail | |
Total |
Securities Investment
3rd Quarter of | YoY Chg. | % YoY | Key Points | |||
FY 2024 | Chg. | |||||
Profit on margin loan increased steadily by steady stock market | ||||||
3,196 | ＋412 | （+14.8％） | development and interest rate environment changes, and profit | |||
on whole margin loan business also increased, while profit on | ||||||
stock loan decreased due to repurchases to secure profits. | ||||||
1,312 | +6 | Showed steady performance in equity repo transaction | ||||
(+0.5%) | mainly due to increased demand for funds from securities | |||||
companies by changes in interest rate conditions. | ||||||
Needs for collateral use and international financial regulatory | ||||||
2,937 | -684 | compliance remain strong. | ||||
(-18.9%) | As a result of market interest rates fluctuating within a certain | |||||
range, the interest margin slightly decreased compared to the | ||||||
previous year, during which profits had increased significantly. | ||||||
240 | +72 | (+43.1%) | Increased profit due to increased demand for funds due to | |||
steady stock market development. | ||||||
490 | -31 | (-6.1%) | Fail-cover needs remain strong, but profits slightly decreased | |||
compared to last year, when profits had increased significantly. | ||||||
384 | +61 | Increased profit due to the revision of loan conditions, | ||||
(+19.1%) | including expansion of eligible collateral in addition to steady | |||||
stock market development. | ||||||
5,365 | -576 | (-9.7%) | ||||
3,548 | +584 | (+19.7%) | Implemented carry revenue accumulation and the portfolio | |||
substitution. | ||||||
Copyright | © Japan Securities Finance Co., Ltd. All Rights Reserved. | 6 |
5. Summary of Financial Results for the 3rd Quarter of FY 2024 (JSF Trust Bank）
JSF Trust Bank
(Non-consolidated)
(¥ mn) | 3rd Quarter of | YoY Chg. | % YoY Chg. | ||||
FY 2024 | |||||||
Ordinary revenues | 3,591 | +1,107 | （+44.5%） | ||||
Trust fees | 1,253 | +84 | （+7.2%） | ||||
Ordinary expenses | 2,173 | +1,193 | （+121.7%） | ||||
Ordinary profit | 1,418 | -86 | （-5.7%） | ||||
Net income | 980 | -60 | （-5.8%） | ||||
Key Points
●Trust fees
- Trust fees from custodial trust services, particularly asset-backed loan trusts, continued to drive increased revenue and profit.
Copyright © Japan Securities Finance Co., Ltd. All Rights Reserved. | 7 |
6. Estimated Performance for FY2024
(No changes since the last announcement)
- Precondition
FY2024 Estimate
Over-lent | |
Margin Loan | Over-lent |
¥290 bn | Stock Loan |
¥70 bn | |
Matching
¥80 bn
Margin Loan | Stock Loan |
¥370 bn | ¥150 bn |
（Reference）
FY2023 Results
Over-lent | |
Over-lent | |
Margin Loan | |
Stock Loan | |
¥174 bn | |
¥140 bn |
Matching
¥111 bn
Margin Loan | Stock Loan |
¥286 bn | ¥252 bn |
（¥ mn） | FY2024 | Change from | |
Estimated | Y o Y | ||
previous EP | |||
Performance | |||
Consolidated | ||||||
Operating profit | 11,400 | +1,219 | ー | |||
Ordinary profit | 12,400 | +1,375 | ー | |||
Profit attributable to owners of | 10,100 | +2,069 | ー | |||
parent | ||||||
Operating profit | 9,249 | +1,524 | ー | |||
JSF | Ordinary profit | 10,765 | +694 | ー | ||
Net income | 8,487 | +601 | ー | |||
JSF Trust | Ordinary profit | 1,717 | -138 | ー | ||
and | ||||||
Net income | 1,188 | -99 | ー | |||
Banking | ||||||
Nihon | Operating profit | 520 | -76 | ー | ||
Ordinary profit | 670 | -43 | ー | |||
Building | ||||||
Net income | 1,200 | +729 | ー | |||
●Loan rate ：1.04％、●Interest on collateral money ：0%、●Lending fee ：0.40％
Copyright © Japan Securities Finance Co., Ltd. All Rights Reserved. | 8 |
7. Shareholder Returns
(No changes since the last announcement)
Dividends per share and Share Buy-Back amount
Ordinary Dividend per share | Special Dividend per share | Share Buy-Back | ||
¥95 | ¥3.8bn | ¥4.0bn | ||
¥3.0bn | ||||
¥85 | ¥3.0bn | ¥3.5bn | ||
¥16 | ||||
¥75 | ¥3.0bn | |||
¥65 | ¥2.3bn | ¥2.5bn | ||
¥55 | ¥2.0bn | |||
¥45 | ¥1.5bn | |||
¥68 | ||||
¥35 | ¥47 | ¥1.0bn | ||
¥25 | ¥30 | ¥32 | ¥0.5bn | |
¥26 | ||||
¥15 | ¥0.0bn | |||
FY2020 | FY2021 | FY2022 | FY2023 | FY2024 |
※The estimated performance for FY2024 was released on February 14, 2025.
In the above chart, dividends per share in FY2024 are forecasts. In terms of share buy-back, amount is the result.
Dividend forecast：¥84
（including special
dividend ¥16）
Share buy-back :
JPY 3.0 bn
Total payout ratio
99.3％
*based on estimate
performance
Copyright © Japan Securities Finance Co., Ltd. All Rights Reserved. | 9 |
Appendix
- Dividend & Share Buy-back Program (Historical)
- Financial Result Trends (Consolidated)
- Operating Revenues & Gross Profit by Business
- Gross Profit by Business (Non-Consolidated, JSF Trust Bank)
- Analysis of YoY Change in Gross Profit by Business
- Outstanding Balances by Business Transaction Type
- Securities Investment (Non-Consolidated, Consolidated)
- Standardized Margin Transactions & Loans for Margin Transactions
- Capital Adequacy Ratio, Rating Information