Japan Securities Finance Co., Ltd. TSE:8511

Japan Securities Finance : Financial Results for the Fiscal Year Ending March 31, 2026 (Consolidated)

Published

Source: MarketScreener

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, it does not guarantee the accuracy and correctness of the translation, and encourages you to refer to the Japanese original.

Financial Results for the Fiscal Year Ending March 31, 2026

[Japanese GAAP] (Consolidated)

May 14, 2026

Company name：Japan Securities Finance Co., Ltd. Listing：Tokyo Stock Exchange Securities code：8511 URL: https://www.jsf.co.jp

Representative: (Title) Representative Executive Officer & CEO (Name) Morikuni Shimoyamada Contact Person: (Title) General Manager of Corporate Planning Dept. (Name)Koji Miyoshi

Tel. +81-03-3666-3184

Scheduled date for annual general meeting: June 26, 2026

Scheduled date for commencement of dividend payments: June 5, 2026 Scheduled filing date of annual securities reports: June 24, 2026

Preparation of supplementary explanatory materials on financial statements: Yes Convening of financial results briefing: Yes

(Millions of yen, rounded down to nearest million)

  1. Consolidated Financial Results for Fiscal 2025 (from April 1, 2025 to March 31, 2026)
    1. Consolidated Operating Results

      (% change from year-on-year for those items)

      Operating revenues

      Operating profit

      Ordinary profit

      Profit attributable

      to owners of parent

      (Millions of Yen)

      (% change)

      (Millions of Yen)

      (% change)

      (Millions of Yen)

      (% change)

      (Millions of Yen)

      (% change)

      F i s c a l 2 0 2 5

      114,211

      92.0

      14,016

      23.7

      14,996

      19.9

      10,611

      2.3

      F i s c a l 2 0 2 4

      59,486

      18.4

      11,329

      11.3

      12,507

      13.4

      10,375

      29.2

      (Note) Comprehensive income: Fiscal 2025: 13,197 millions of yen (-%) Fiscal 2024: -1,268 millions of yen (-%)

      Net income per share

      Net income per share

      - diluted

      Return on Equity

      Ordinary profit

      ／Total Assets

      Operating profit

      ／Operating Revenues

      (Yen)

      (Yen)

      ROE (％)

      ROA (％)

      (％)

      Fiscal 2025

      129.74

      -

      7.8

      0.1

      12.3

      Fiscal 2024

      124.61

      -

      7.4

      0.1

      19.0

      (Reference) Equity method investment profit and loss: Fiscal 2025:354 millions of yen Fiscal 2024 : 774 millions of yen

    2. Consolidated Financial Position

      Total assets

      Net assets

      Shareholders'

      equity ratio

      Net Assets per Share

      (Millions of Yen)

      (Millions of Yen)

      (%)

      (Yen)

      Fiscal 2025

      15,518,633

      137,494

      0.9

      1,698.06

      Fiscal 2024

      13,769,589

      134,346

      1.0

      1,630.45

      (Reference) Net worth: Fiscal 2025: 137,494 millions of yen Fiscal 2024: 134,346 millions of yen

    3. Consolidated Statements of Cash Flows

    Cash flows from operating activities

    Cash flows from investing activities

    Cash flows from financing activities

    Cash and cash equivalents at end of the period

    (Millions of Yen)

    (Millions of Yen)

    (Millions of Yen)

    (Millions of Yen)

    Fiscal 2025

    135,034

    -403

    -10,206

    1,559,712

    Fiscal 2024

    -535,081

    1,745

    -9,003

    1,435,287

  2. Dividends

    Dividends per Share

    Total Cash

    Dividends (Full-year)

    Dividends Payout Ratio (Consolidated)

    Dividends on Equity (Consolidated)

    1st

    Quarter

    2nd

    Quarter

    3rd

    Quarter

    Year-end

    Annual

    (Yen)

    (Yen)

    (Yen)

    (Yen)

    (Yen)

    (Millions of Yen)

    (%)

    DOE (%)

    Fiscal 2024

    -

    42.00

    -

    42.00

    84.00

    7,045

    67.4

    5.0

    Fiscal 2025

    -

    40.00

    -

    46.00

    86.00

    7,056

    66.3

    5.2

    Fiscal 2026 (Forecast)

    -

    47.00

    -

    47.00

    94.00

    69.2

    (Note) Fiscal 2024 2nd quarter: Ordinary dividend 34.00 yen Special dividend 8.00 yen Fiscal 2024 End of the period: Ordinary dividend 34.00 yen Special dividend 8.00 yen

  3. Consolidated Performance Forecast for Fiscal 2026 (April 1, 2026－March 31, 2027)

(% change from the previous fiscal year)

Operating profit

Ordinary profit

Profit attributable to owners of parent

Net income per share

Full Year

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

14,400

2.7

15,800

5.4

11,000

3.7

135.86

  • Notes

    1. Changes in scope of significant consolidated subsidiaries (changes in the case of specified subsidiaries accompanying change in the scope of consolidation): None

    2. Changes in accounting policies and changes or restatement of accounting estimates

      1. Changes in accounting policies caused by revision of accounting standards: None

      2. Changes in accounting policies other than (i): None

      3. Changes in accounting estimates: None

      4. Restatements: None

        (Note) See section "3. Consolidated Financial Statements and Notes (5) Notes Regarding Consolidated Financial Statements (Note on Changes to Accounting Policies)" in the attached materials regarding the details.

    3. Number of issued and outstanding shares (common stock)

      1. Number of issued and outstanding shares (including treasury stock)

        as of Mar. 31, 2026: 83,000,000 as of Mar. 31, 2025: 88,000,000

      2. Number of treasury stock shares

        as of Mar. 31, 2026: 2,028,782 as of Mar. 31, 2025: 5,601,375

      3. Average number of shares (quarter-to-date)

for three months ended Mar. 31, 2026: 81,790,655

for three months ended Mar. 31, 2025: 83,268,295

(Note) The number of treasury stock shares deducted in the calculation of the number of treasury stock shares at the end of the period and the average number of issued and outstanding shares during the period (quarter-to-date ) includes the shares of the Company held by the Share Benefit Trust (BBT and BBT-RS).

[Reference] Non-consolidated Financial Results for Fiscal 2025 (April 1, 2025 - March 31, 2026)
  1. Non-consolidated Operating Results

    (% change from year-on-year for those items)

    Operating revenues

    Operating profit

    Ordinary profit

    Net income

    (Millions of Yen)

    (% change)

    (Millions of Yen)

    (% change)

    (Millions of Yen)

    (% change)

    (Millions of Yen)

    (% change)

    Fiscal 2025

    103,085

    93.9

    10,768

    19.2

    13,833

    30.4

    10,559

    24.4

    Fiscal 2024

    53,172

    14.8

    9,031

    16.9

    10,608

    5.4

    8,487

    7.6

    Net income per share

    Net income per share

    - diluted

    (Yen)

    (Yen)

    Fiscal 2025

    129.09

    -

    Fiscal 2024

    101.92

    -

  2. Non-consolidated Financial Position

Total assets

Net assets

Shareholders'

equity ratio

Net Assets per Share

(Millions of Yen)

(Millions of Yen)

(%)

(Yen)

Fiscal 2025

14,665,685

120,931

0.8

1,493.31

Fiscal 2024

12,901,417

119,557

0.9

1,450.77

(Reference) Net worth: Fiscal 2025: 120,931 million Fiscal 2024: 119,557 million

Note: Summary of financial results is not subject to quarterly review by a certified public accountant or auditing firm.

Note: Explanation on proper use of business performance forecasts and other notes

The performance forecasts contained in this document are based on information available at the present and certain assumptions deemed reasonable by the company. These statements are not intended to serve as a guarantee for the achievement of the forecasted performance. Additionally, actual performance may differ significantly due to a variety of factors. Please see section "1. (3) Future Outlook" in the attached materials regarding the consolidated performance forecast.

  1. Qualitative Information on the Current Quarter Results

    1. Review of Operating Results

      (Results for the Fiscal Year Ending March 2026)

      In fiscal 2025, our group's consolidated gross operating profit increased to 21,856 million yen (up 16.6% year-on-year). This was due to robust performance in security finance operations such as loans for margin transactions and equity repo transactions, driven by a robust stock market and increased demand for financing brought on by rising market interest rates. As a result, our consolidated operating profit increased to 14,016 million yen (up 23.7% year-on-year), and our consolidated ordinary profit also increased to 14,996 million yen (up 19.9% year-on-year). The profit attributable to owners of the parent amounted to 10,611 million yen (up 2.3% year-on-year) due to the absence of the extraordinary gain of 1,828 million yen recorded in the same period of the previous year.

      (millions of yen)

      Consolidated profits & losses

      Year-on-year comparison

      Rate of increase/decrease

      Operating revenues (Excluding premium charges)

      105,300

      49,996

      90.3%

      Including premium charges

      114,211

      54,724

      92.0%

      Operating expenses (Excluding premium charges)

      83,463

      46,857

      128.0%

      Including premium charges

      92,354

      51,614

      126.7%

      Gross profit

      21,856

      3,110

      16.6%

      General and administrative expenses

      7,840

      423

      5.7%

      Operating profit

      14,016

      2,686

      23.7%

      Non-operating income

      980

      -197

      -16.8%

      Ordinary profit

      14,996

      2,489

      19.9%

      Extraordinary income

      -

      -1,828

      -100.0%

      Profit before income taxes etc.

      14,996

      660

      4.6%

      Profit attributable to owners of the parent

      10,611

      235

      2.3%

      Status of the Group's Gross Profits by Business Sector

      Previous consolidated fiscal year

      (from April 1, 2024 to

      March 31, 2025)

      Consolidated fiscal year under review

      (from April 1, 2025 to

      March 31, 2026)

      Increase/Decrease

      Amount

      (Millions of yen)

      Composition ratio (%)

      Amount

      (Millions of yen)

      Composition ratio (%)

      Amount

      (Millions of yen)

      Ratio (%)

      Securities Finance Business

      14,905

      77.9

      16,867

      75.7

      1,962

      13.2

      Loans for margin

      transactions (Excluding premium charges)

      4,385

      22.9

      6,977

      31.3

      2,591

      59.1

      Securities financing

      7,343

      38.4

      7,095

      31.9

      -248

      -3.4

      Equity repo transactions, etc.

      1,760

      9.2

      2,166

      9.7

      406

      23.1

      Bond repo and

      gensaki transactions

      4,057

      21.2

      3,085

      13.9

      -972

      -24.0

      Loans for negotiable margin transactions

      358

      1.9

      426

      1.9

      68

      19.0

      General stock lending

      663

      3.5

      833

      3.7

      170

      25.6

      Retail loans

      504

      2.6

      583

      2.6

      78

      15.5

      Securities investment, etc.

      3,176

      16.6

      2,794

      12.5

      -381

      -12.0

      Trust and Banking Business

      3,043

      15.9

      4,295

      19.3

      1,251

      41.1

      Real Estate Leasing Business

      1,185

      6.2

      1,110

      5.0

      -75

      -6.3

      Total (Non-Consolidated)

      19,134

      100.0

      22,273

      100.0

      3,138

      16.4

      Total (Consolidated)

      18,746

      -

      21,856

      -

      3,110

      -

      Status of the Group's Transaction Balances by Business Sector (Average Balance)

      Previous consolidated fiscal year

      (from April 1, 2024 to

      March 31, 2025)

      Consolidated fiscal year under review

      (from April 1, 2025 to

      March 31, 2026)

      Increase/Decrease

      Loans for margin transactions

      (billions of yen)

      (billions of yen)

      (billions of yen)

      370.8

      404.3

      33.5

      Securities loaned for margin transactions

      159.5

      252.3

      92.8

      Securities financing

      12,215.8

      13,252.3

      1,036.4

      Equity repo transactions, etc.

      806.9

      1,077.5

      270.5

      Bond repo and gensaki transactions

      11,299.6

      12,073.3

      773.6

      Loans for negotiable margin transactions

      44.6

      46.4

      1.8

      General stock lending

      39.2

      23.0

      -16.2

      Retail loans

      25.3

      31.8

      6.5

      Trust Bank Loans

      175.7

      82.5

      -93.1

    2. Overview of Financial Status

      (Status of Assets, Liabilities, and Net Assets)

      As of the end of the consolidated accounting period (March 31, 2026), total assets amounted to 15,518.6 billion yen (an increase of 1,749.0 billion yen from the previous fiscal year-end), due to an increase in securities purchased under resale agreements. Total liabilities amounted to 15,381.1 billion yen (an increase of 1,745.8 billion yen from the previous fiscal year-end), due to an increase in cash collateral received for securities lent. Total net assets amounted to 137.4 billion yen (an increase of 3.1 billion yen from the previous fiscal year-end) due to a decrease in accumulated other comprehensive income.

      (Status of cash flow)

      As of the end of the consolidated accounting period (March 31, 2026), cash and cash equivalents amounted to 1,559.7 billion yen (an increase of 124.4 billion yen from the previous fiscal year-end).

      The status of each cash flow and their factors are as follows:

      • Cash flow from operating activities

        Net inflow by cash flow from operating activities was 135.0 billion yen (an over outflow of 535.0 billion yen in the previous fiscal year), due to an increase in securities sold under repurchase agreements, etc.

      • Cash flow from investing activities

        Net outflow by cash flow from investing activities was 0.4 billion yen (an over inflow of 1.7 billion yen in the previous fiscal year), due to purchase of investment securities.

      • Cash flow from financing activities

      Net outflow by cash flow from investing activities was 10.2 billion yen (an over outflow of 9.0 billion yen in the previous fiscal year), due to dividend payments and share buy-backs.

    3. Future Outlook

    The performance outlook for fiscal 2026 forecasts a consolidated operating profit of 14.4 billion yen, a consolidated ordinary profit of 15.8 billion yen and a net income attributable to owners of the parent of

    11.0 billion yen. Please note that the above performance forecasts are based on the information that is currently available to our group and on assumptions deemed reasonable at present. Actual performance may differ due to a variety of future factors, and any necessary revisions to the performance forecasts will be promptly disclosed.

    [Consolidated Full-Year Forecast] (Full Year)

    Operating profit

    Ordinary profit

    Profit attributable to owners of parent

    Net income per share

    Forecast (A)

    (millions of yen)

    (millions of yen)

    (millions of yen)

    (yen)

    14,400

    15,800

    11,000

    135.86

    (Reference) Actual Results in

    Previous Period (B)

    14,016

    14,996

    10,611

    129.74

    Increase/Decrease (A-B)

    383

    803

    388

    Increase/Decrease

    Rate (%)

    2.7

    5.4

    3.7

  2. Basic Approach to the choice of Accounting Standards

The group prepares its consolidated financial statements in accordance with Japanese GAAP, for the time being, taking into account inter-company comparability.

2. Consolidated Financial Statements and Notes

  1. Consolidated Balance Sheet

    (Millions of yen)

    As of March 31, 2025

    As of March 31, 2026

    Assets

    Current assets

    Cash and deposits

    1,435,297

    1,559,712

    Call loans

    10,000

    4,500

    Securities

    96,241

    668,634

    Operating loans

    796,827

    1,040,240

    Securities purchased under resale agreements

    6,441,120

    7,201,848

    Cash collateral provided for securities borrowed

    4,307,086

    4,838,141

    Derivatives

    1,252

    38,070

    Other

    91,227

    124,720

    Allowance for doubtful accounts

    -111

    -132

    Total current assets

    13,178,942

    15,475,735

    Non-current assets

    Property, plant and equipment

    Buildings and structures

    9,098

    9,120

    Accumulated depreciation

    -7,111

    -7,217

    Buildings and structures, net

    1,986

    1,902

    Furniture and fixtures

    1,312

    1,325

    Accumulated depreciation

    -951

    -1,033

    Furniture and fixtures, net

    360

    292

    Land

    3,231

    3,231

    Construction in progress

    -

    47

    Total property, plant and equipment

    5,578

    5,473

    Intangible assets

    618

    594

    Investments and other assets

    Investment securities

    544,475

    30,162

    Bad debts

    63

    54

    Retirement benefit asset

    3,832

    5,634

    Deferred tax assets

    857

    927

    Derivatives

    21,280

    -

    Other

    14,003

    104

    Allowance for doubtful accounts

    -63

    -54

    Total investments and other assets

    584,450

    36,829

    Total non-current assets

    590,647

    42,898

    Total assets

    13,769,589

    15,518,633

    (Millions of yen)

    As of March 31, 2025

    As of March 31, 2026

    Liabilities

    Current liabilities

    Call money

    1,506,000

    1,812,900

    Short-term borrowings

    92,005

    92,000

    Current portion of long-term borrowings

    1,000

    18,500

    Commercial papers

    438,466

    859,729

    Securities sold under repurchase agreements

    8,044,038

    8,374,195

    Cash collateral received for securities lent

    2,549,554

    3,229,297

    Income taxes payable

    1,547

    1,638

    Provision for bonuses

    550

    636

    Provision for bonuses for directors (and other officers)

    103

    120

    Borrowed money from trust account

    575,934

    538,388

    Derivative liabilities

    303

    440

    Other

    106,156

    148,959

    Total current liabilities

    13,315,661

    15,076,807

    Non-current liabilities

    Long-term borrowings

    315,600

    298,100

    Deferred tax liabilities

    1,354

    2,543

    Deferred tax liabilities for land revaluation

    76

    76

    Provision for share awards for directors (and other officers)

    222

    86

    Retirement benefit liability

    269

    237

    Asset retirement obligations

    58

    60

    Derivative liabilities

    1,500

    2,719

    Other

    498

    508

    Total non-current liabilities

    319,581

    304,332

    Total liabilities

    13,635,242

    15,381,139

    Net assets

    Shareholders' equity

    Share capital

    10,000

    10,000

    Capital surplus

    5,194

    5,181

    Retained earnings

    125,323

    120,941

    Treasury shares

    -7,764

    -2,807

    Total shareholders' equity

    132,754

    133,315

    Accumulated other comprehensive income

    Valuation difference on available-for-sale securities

    -11,778

    -9,934

    Deferred gains or losses on hedges

    11,673

    11,353

    Revaluation reserve for land

    165

    165

    Remeasurements of defined benefit plans

    1,531

    2,593

    Total accumulated other comprehensive income

    1,592

    4,178

    Total net assets

    134,346

    137,494

    Total liabilities and net assets

    13,769,589

    15,518,633

  2. Consolidated Income Statement and Consolidated Comprehensive Income Statement (Consolidated Income Statement)

    (Millions of yen)

    Fiscal year ended March 31, 2025

    Fiscal year ended March 31, 2026

    Operating revenue

    Interest on loans

    5,720

    9,159

    Interest income on securities purchased under resale agreements

    11,246

    32,779

    Interest income on cash collateral provided for securities borrowed

    12,783

    29,934

    Securities lending fees

    7,990

    12,412

    Gain on investments in securities

    8,774

    13,832

    Other operating revenue

    12,969

    16,092

    Total operating revenue

    59,486

    114,211

    Operating expenses

    Interest expenses

    17,071

    34,326

    Interest expenses on securities sold under repurchase agreements

    10,122

    38,740

    Securities borrowing fees

    9,004

    13,249

    Loss on investments in securities

    2,076

    3,749

    Other operating expenses

    2,465

    2,288

    Total operating expenses

    40,740

    92,354

    Operating gross profit

    18,746

    21,856

    General and administrative expenses

    Compensations and salaries

    3,090

    3,303

    Retirement benefit expenses

    -124

    -130

    Provision for bonuses

    550

    636

    Provision for bonuses for directors (and other officers)

    103

    120

    Provision for share awards for directors (and other

    officers)

    21

    24

    Depreciation

    486

    451

    Provision of allowance for doubtful accounts

    19

    11

    Other

    3,268

    3,423

    Total general and administrative expenses

    7,416

    7,840

    Operating profit

    11,329

    14,016

    Non-operating income

    Interest income

    0

    4

    Dividend income

    287

    317

    Share of profit of entities accounted for using equity method

    774

    354

    Gain on investments in investment partnerships

    52

    157

    Compensation income

    37

    113

    Miscellaneous income

    60

    62

    Total non-operating income

    1,211

    1,009

    Non-operating expenses

    Interest expenses

    0

    0

    Commission for purchase of treasury shares

    8

    9

    Loss on investments in investment partnerships

    25

    19

    Miscellaneous expenses

    0

    0

    Total non-operating expenses

    34

    29

    Ordinary profit

    12,507

    14,996

    Extraordinary income

    Gain on sale of non-current assets

    1,163

    -

    Gain on sale of investment securities

    664

    -

    Total extraordinary income

    1,828

    -

    Profit before income taxes

    14,335

    14,996

    Income taxes - current

    3,784

    4,427

    Income taxes - deferred

    175

    -42

    Total income taxes

    3,959

    4,384

    Profit

    10,375

    10,611

    Profit attributable to non-controlling interests

    -

    -

    Profit attributable to owners of parent

    10,375

    10,611

    (Consolidated Comprehensive Income Statement)

    (Millions of yen)

    Fiscal year ended March 31, 2025

    Fiscal year ended March 31, 2026

    Profit

    10,375

    10,611

    Other comprehensive income

    Valuation difference on available-for-sale securities

    -12,993

    1,766

    Deferred gains or losses on hedges

    1,304

    -320

    Revaluation reserve for land

    -2

    -

    Remeasurements of defined benefit plans, net of tax

    12

    966

    Share of other comprehensive income of entities accounted for using equity method

    34

    172

    Total other comprehensive income

    -11,644

    2,585

    Comprehensive income

    -1,268

    13,197

    Comprehensive income attributable to

    Comprehensive income attributable to owners of parent

    -1,268

    13,197

    Comprehensive income attributable to non-controlling interests

    -

    -

  3. Consolidated Statement of Changes of Net Assets

    Previous consolidated fiscal year (from April 1, 2024 to March 31, 2025)

    (millions of yen)

    Shareholders' equity

    Share capital

    Capital surplus

    Retained

    earnings

    Treasury shares

    Total

    Shareholders' equity

    Balance at April 1, 2024

    10,000

    5,181

    121,036

    -4,847

    131,369

    Changes arising during the year

    - Cash dividends

    -6,088

    -6,088

    - Profit attributable to owners of parent

    10,375

    10,375

    - Purchase of treasury share

    -3,002

    -3,002

    - Disposal of treasury share

    12

    86

    99

    - Net changes other

    than stockholders'

    equity

    Total changes during the year

    -

    12

    4,287

    -2,916

    1,384

    Balance at March 31, 2025

    10,000

    5,194

    125,323

    -7,764

    132,754

    (millions of yen)

    Accumulated other comprehensive income

    Total net assets

    Valuation difference on available-for-sale securities

    Deferred gains or losses on hedges

    Revaluation reserve for land

    Remeasurements of defined benefit plans

    Total accumulated other comprehensive

    income

    Balance at April 1, 2024

    1,214

    10,369

    168

    1,484

    13,236

    144,606

    Changes arising during the year

    - Cash dividends

    -6,088

    - Profit attributable to

    owners of parent

    10,375

    - Purchase of treasury shares

    -3,002

    - Disposal of treasury share

    99

    - Net changes other than

    stockholders'

    equity

    -12,993

    1,304

    -2

    47

    -11,644

    -11,644

    Total changes during the year

    -12,993

    1,304

    -2

    47

    -11,644

    -10,260

    Balance at March 31, 2025

    -11,778

    11,673

    165

    1,531

    1,592

    134,346

    Consolidated fiscal year under review (from April 1, 2025 to March 31, 2026)

    (millions of yen)

    Shareholders' equity

    Share capital

    Capital surplus

    Retained

    earnings

    Treasury shares

    Total

    Shareholders' equity

    Balance at April 1, 2025

    10,000

    5,194

    125,323

    -7,764

    132,754

    Changes arising during the year

    - Cash dividends

    -6,804

    -6,804

    - Profit attributable to owners of parent

    10,611

    10,611

    - Purchase of treasury share

    -3,401

    -3,401

    - Disposal of treasury share

    0

    156

    156

    - Cancelation of treasury share

    -8,202

    8,202

    -

    - Transfer from

    retained earnings to capital surplus

    8,189

    -8,189

    -

    - Net changes other

    than stockholders'

    equity

    Total changes during the year

    -

    -12

    -4,382

    4,956

    561

    Balance at March 31, 2026

    10,000

    5,181

    120,941

    -2,807

    133,315

    (millions of yen)

    Accumulated other comprehensive income

    Total net assets

    Valuation difference on available-for-sale securities

    Deferred gains or losses on hedges

    Revaluation reserve for land

    Remeasurements of defined benefit plans

    Total accumulated other comprehensive

    income

    Balance at April 1, 2025

    -11,778

    11,673

    165

    1,531

    1,592

    134,346

    Changes arising during the year

    - Cash dividends

    -6,804

    - Profit attributable to owners of parent

    10,611

    - Purchase of

    treasury shares

    -3,401

    - Disposal of treasury share

    156

    - Cancelation of treasury share

    -

    - Transfer from retained earnings

    to capital surplus

    -

    - Net changes other than

    stockholders'

    equity

    1,844

    -320

    -

    1,061

    2,585

    2,585

    Total changes during the year

    1,844

    -320

    -

    1,061

    2,585

    3,147

    Balance at March 31, 2026

    -9,934

    11,353

    165

    2,593

    4,178

    137,494

  4. Consolidated Cash Flow Statement

    (Millions of yen)

    Fiscal year ended March 31, 2025

    Fiscal year ended March 31, 2026

    Cash flows from operating activities

    Profit before income taxes

    14,335

    14,996

    Depreciation

    486

    451

    Loss (gain) on sale and retirement of non-current assets

    -1,161

    0

    Loss (gain) related to securities

    -30

    1,486

    Increase (decrease) in allowance for doubtful accounts

    19

    11

    Increase (decrease) in provision for bonuses

    -12

    86

    Increase (decrease) in provision for bonuses for directors (and other officers)

    -12

    16

    Increase (decrease) in provision for share awards for

    directors (and other officers)

    4

    -136

    Increase (decrease) in retirement benefit liability

    -579

    -1,834

    Interest and dividend income

    -41,960

    -92,894

    Interest expenses

    27,193

    73,066

    Share of loss (profit) of entities accounted for using equity method

    -774

    -354

    Decrease (increase) in operating loans receivable

    261,802

    -243,412

    Net decrease (increase) in call loans

    10,000

    5,500

    Net decrease (increase) in receivables under resale agreements

    -1,687,506

    -760,727

    Decrease (increase) in cash collateral provided for securities borrowed

    645,995

    -531,054

    Net increase (decrease) in call money

    -358,800

    306,900

    Net increase (decrease) in short term borrowings

    -5

    -5

    Net increase (decrease) in commercial papers

    -150,599

    421,263

    Net increase (decrease) in payables under repurchase

    agreements

    2,094,674

    330,157

    Increase (decrease) in collateral money received for securities lent

    -1,212,858

    679,743

    Net increase (decrease) in collateral money received for loan transactions

    -17,612

    42,008

    Net increase (decrease) in borrowed money from trust account

    -164,196

    -37,545

    Net increase (decrease) in long-term borrowings

    -149,800

    -

    Purchase of short-term and long term investment securities

    -496,733

    -643,863

    Proceeds form sales and redemption of short-term and long term investment securities

    591,556

    575,681

    Other, net

    91,348

    -18,973

    Subtotal

    -545,226

    120,567

    Interest and dividends received

    37,759

    88,584

    Interest paid

    -25,343

    -70,136

    Income taxes paid

    -10,414

    -10,969

    Income taxes refund

    8,141

    6,989

    Net cash provided by (used in) operating activities

    -535,081

    135,034

    Cash flows from investing activities

    Purchase of investment securities

    -106

    -121

    Proceeds from sale and redemption of investment securities

    913

    -

    Purchase of property, plant and equipment

    -91

    -107

    Proceeds from sale of property, plant and equipment

    1,196

    -

    Purchase of intangible assets

    -166

    -174

    Other, net

    -0

    -0

    Net cash provided by (used in) investing activities

    1,745

    -403

    Cash flows from financing activities

    Dividends paid

    -6,088

    -6,804

    Purchase of treasury shares

    -3,002

    -3,401

    Proceeds from disposal of treasury shares

    87

    0

    Net cash provided by (used in) financing activities

    -9,003

    -10,206

    Effect of exchange rate change on cash and cash

    equivalents

    -

    -

    Net increase (decrease) in cash and cash equivalents

    -542,340

    124,425

    Cash and cash equivalents at beginning of period

    1,977,628

    1,435,287

    Cash and cash equivalents at end of period

    1,435,287

    1,559,712

  5. Notes Regarding Quarterly Consolidated Financial Statements (Notes Regarding Going Concern Assumptions)

Not applicable.

(Note on Changes to Accounting Policies) (Consolidated Balance Sheet)

In the previous consolidated fiscal year, "Derivatives" included in "Other" under "Current assets," "Derivatives" included in "Other" under "Non-current assets," and "Derivative liabilities" included in

"Other" under "Current liabilities" were reported separately from the current consolidated fiscal year in order to enhance clarity. To reflect this change in presentation, we have restated the consolidated financial statements for the previous consolidated fiscal year.

As a result, in the consolidated balance sheet for the previous consolidated fiscal year, 92,480 million yen reported as "Other" under "Current assets" has been restated as "Derivatives" of 1,252 million yen and "Other" of 91,227 million yen; 35,283 million yen reported as "Other" under "Non-current assets" has been restated as "Derivatives" of 21,280 million yen and "Other" of 14,003 million yen; and 106,460 million yen reported as "Other" under "Current liabilities" has been restated as "Derivative liabilities" of 303 million yen and "Other" of 106,156 million yen.

(Consolidated Income Statement)

In the previous consolidated fiscal year, "Gain on investments in securities" included in "Other operating revenue" under "Operating revenue" and "Loss on investments in securities" included in "Other operating expenses" under "Operating expenses" were reported separately from the current consolidated fiscal year in order to enhance clarity.

To reflect this change in presentation, the we have restated the consolidated financial statements for the previous consolidated fiscal year. As a result, in the consolidated income statement for the previous consolidated fiscal year, 21,744 million yen reported as "Other operating revenue" under "Operating revenue" has been restated as "Gains on investments in securities" of 8,774 million yen and "Other operating revenue" of 12,969 million yen; and 4,541 million yen reported as "Other operating expenses" under "Operating expenses" has been restated as "Loss on investments in securities" of 2,076 million yen and "Other operating expenses" of 2,465 million yen.

In addition, "Compensation income" included in "Miscellaneous income" under "Non-operating income" in the previous consolidated fiscal year exceeded 10% of total non-operating income, and as such it will be reported separately from the current consolidated fiscal year.

To reflect this change in presentation, we have restated the consolidated financial statements for the previous consolidated fiscal year. As a result, in the consolidated income statement for the previous consolidated fiscal year, 97 million yen reported as "Miscellaneous income" under "Non-operating income" has been restated as "Compensation income" of 37 million yen and "Miscellaneous income" of 60 million yen.

(Note on additional information) (Change in classification of securities)

From the current consolidated fiscal year, our company has restated certain securities held for its securities financing centered on loans for margin transactions and its trust banking business as current assets. These securities were previously included under "Investment securities" and in money held in trust was included under "Other" within "Investments and other assets," and are used in our company's operating activities. This change was made in conjunction with the launch of our 8th Medium-Term Management Plan.

As a result, in the consolidated balance sheet for the current consolidated fiscal year, securities subject to this change are stated as 635,339 million yen under "Securities" in current assets and 5,528 million yen under "Other" in current assets. In addition, derivative transactions for which these restated securities serve as hedged items are recorded as 37,483 million yen under "Derivatives" in current assets, 4,576 million yen under "Other" in current assets, and 118 million yen under "Derivative liabilities" in current liabilities.

(Segment Information)

  1. Overview of reporting segments

    The group's reporting segments are components of the group for which separate financial information is available, and they are regularly subjected to review by the Board of Directors to determine the allocation of management resources and to evaluate performance.

    The group has three reporting segments: JSF's securities finance business; as well as the trust and banking business of JSF Trust and Banking Co., Ltd. and the real estate leasing business of Nihon Building - both of which are consolidated subsidiaries.

    In the securities finance business, the company provides loans for margin transactions, securities financing, and securities for investment. The trust and banking business includes securities trust services and banking services including loans. The real estate leasing business is mainly consists of the leasing and management of properties owned by the group.

  2. Method of determining reporting segments

    The accounting method used for the reporting segments are the same as those used in the preparation of the consolidated financial statements

    Segment profit is measured on an ordinary profit basis. Internal revenues and transfers between segments are based on prevailing market prices.

  3. Information on the amount of operating revenue and profits or losses for each reporting segment

    Previous consolidated fiscal year (from April 1, 2024 to March 31, 2025)

    (millions of yen)

    Securities finance business

    Trust and banking business

    Real estate leasing business

    Total

    Operating revenue

    Revenue from sales to outside customers

    53,015

    5,653

    816

    59,486

    Internal operating revenues or balance of transfers among segments

    156

    84

    392

    633

    Total

    53,172

    5,737

    1,209

    60,119

    Segment profit (ordinary profit)

    10,608

    1,755

    715

    13,080

    Segment assets

    12,901,417

    918,913

    10,411

    13,830,742

    Others

    - Depreciation

    329

    72

    84

    486

    - Tax expense

    2,786

    529

    641

    3,956

    Consolidated fiscal year under review (from April 1, 2025 to March 31, 2026)

    (millions of yen)

    Securities finance business

    Trust and banking business

    Real estate leasing business

    Total

    Operating revenue

    Revenue from sales to outside customers

    102,945

    10,520

    745

    114,211

    Internal operating revenues or balance of transfers among

    segments

    140

    47

    392

    580

    Total

    103,085

    10,567

    1,138

    114,791

    Segment profit (ordinary profit)

    13,833

    2,783

    745

    17,363

    Segment assets

    14,665,685

    858,474

    10,080

    15,534,241

    Others

    - Depreciation

    291

    74

    85

    450

    - Tax expense

    3,274

    859

    250

    4,384

  4. Differences between the total amount of profits or losses for each reporting segment and amount recorded in the consolidated income statement, and the main content of these differences (matters related to difference adjustments)

    (millions of yen)

    Operating revenue

    Previous consolidated

    fiscal year

    Consolidated fiscal year

    under review

    Total for reporting segments

    60,119

    114,791

    Elimination of inter-segment transactions

    -633

    -580

    Other adjustments

    -

    -

    Operating revenue in the consolidated income statement

    59,486

    114,211

    (millions of yen)

    Ordinary profit

    Previous consolidated

    fiscal year

    Consolidated fiscal year

    under review

    Total for reporting segments

    13,080

    17,363

    Elimination of inter-segment transactions

    -1,347

    -336

    Equity in gains of affiliates

    774

    354

    Other adjustments

    -

    -

    Ordinary profit in the consolidated income statement

    12,507

    14,996

    (millions of yen)

    Assets

    Previous consolidated

    fiscal year

    Consolidated fiscal year

    under review

    Total for reporting segments

    13,830,742

    15,534,241

    Elimination of inter-segment offsetting receivables

    -43,986

    -336

    Equity in gains of affiliates

    -24,913

    -24,913

    Other adjustments

    7,747

    9,642

    Assets in the consolidated income statement

    13,769,589

    15,518,633

    (millions of yen)

    Others

    Total for reporting segments

    Adjustments

    Amount in the consolidated income

    statement

    Previous

    consolidated fiscal year

    Consolidated

    fiscal year under review

    Previous

    consolidated fiscal year

    Consolidated

    fiscal year under review

    Previous

    consolidated fiscal year

    Consolidated

    fiscal year under review

    Depreciation

    486

    450

    0

    0

    486

    451

    Tax expense

    3,956

    4,384

    2

    -

    3,959

    4,384

    (Per Share Information)

    (yen)

    Previous consolidated fiscal year

    (April 1, 2024 to March 31,

    2025)

    Consolidated fiscal year under review

    (April 1, 2025 to March 31,

    2026)

    Net assets per share

    1,630.45

    1,698.06

    Net income per share

    124.61

    129.74

    (Note) 1 Diluted net income per share is not shown, as no dilutive shares exist.

    1. The basis for the calculation of the net income per share is as follows:

      (yen)

      Previous consolidated fiscal year

      (April 1, 2024 to March 31,

      2025)

      Consolidated fiscal year under review

      (April 1, 2025 to March 31,

      2026)

      Profit attributable to owners of parent (million yen)

      10,375

      10,611

      Profit unattributable to shareholders

      of common stocks (million yen)

      -

      -

      Profit on common stocks attributable

      to owners of parent (million yen)

      10,375

      10,611

      Average number of shares of common stocks during the period

      (thousand shares)

      83,268

      81,790

    2. In the calculation of net assets per share, the number of treasury stock shares deducted from the number of issued and outstanding shares at the end of the period includes the shares of the Company held by the Share Benefit Trust (BBT and BBT-RS). (Previous consolidated fiscal year: 917 thousand shares Consolidated fiscal year under review: 588 thousand shares)

Also, in the calculation of net income per share, the number of treasury stock shares deducted from the average number of issued and outstanding shares during the period are included. (Previous consolidated fiscal year: 923 thousand shares Consolidated fiscal year under review: 793 thousand shares)

(Significant Subsequent Events) Not applicable.