JAPAN SECURITIES FINANCE CO., LTD.
8511・Prime Market・Other Financing Business
Securities Finance Business
The core segment of the JSF Group, responsible for the Loan for Stock Transaction Business and Security Finance Business.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment operating revenue (external customers, full year) | ¥102,945 million | ¥53,015 million | ↑ |
| Segment profit (ordinary income basis, full year) | ¥13,833 million | ¥10,608 million | ↑ |
| Segment assets | ¥14,665,685 million | ¥12,901,417 million | ↑ |
| Depreciation expense | ¥291 million | ¥329 million | ↓ |
| Loan for Stock Transaction Business (excluding lending fees) gross operating profit | ¥6,977 million | ¥4,385 million | ↑ |
| Security Finance Business gross operating profit | ¥7,095 million | ¥7,343 million | ↓ |
| Securities investment and other gross operating profit | ¥2,794 million | ¥3,176 million | ↓ |
Business Details
As Japan's only securities finance company, it operates the Loan for Stock Transaction Business under a license based on the Financial Instruments and Exchange Act. It conducts loan-for-stock transactions (margin loans and stock lending), the Security Finance Business including stock repo transactions, bond repos and repurchase agreements, and the Securities Investment Business. Customers include financial instruments business operators, institutional investors, and individual investors. It serves an infrastructure function for the securities and financial markets and accounts for approximately 90% of the Group's operating revenue from external customers, making it the core segment.
Recent Overview
Loan for Stock Transaction Business expanded rapidly amid a firm stock market and rising interest rates; segment profit rose 30.4% year on year.
Segment profit for the Securities Finance Business in FY2026 (ending March 2026) was ¥13,833 million (up 30.4% year on year). Against a backdrop of firm stock market conditions and increased fund demand driven by rising market interest rates, gross operating profit from the Loan for Stock Transaction Business (excluding lending fees) increased substantially to ¥6,977 million (up 59.1% year on year). On the other hand, bond repos and repurchase agreements saw decreased profit of ¥3,085 million (down 24.0% year on year). In connection with the 8th Medium-Term Management Plan, the classification of securities held was changed to current assets, and segment assets expanded to ¥14,665,685 million (up 13.7% year on year).
Key Products
Growth Drivers
- Rising lending rates and increased fund demand driven by higher market interest rates (transition in the interest rate environment following the Bank of Japan's termination of its negative interest rate policy)
- Expansion of balances in the Loan for Stock Transaction Business and stock repo transactions, etc., against a backdrop of firm stock market conditions
- Expanding matching of demand from overseas parties to borrow Japanese government bonds with the investment needs of domestic institutional investors in bond repo and repurchase agreement transactions
- Growth in the Security Finance Business through expansion of counterparties (including foreign financial institutions) and diversification of securities handled
- Optimization of business operations through the reclassification of held securities to current assets under the 8th Medium-Term Management Plan
Risks
- Risk of decreased balances and revenue in the Loan for Stock Transaction Business and stock repo transactions, etc. due to deterioration in stock market conditions
- Risk of shrinking loan interest income due to declines in market interest rates
- Risk of balance sheet expansion and concentrated credit risk due to the large transaction lots in bond repo and repurchase agreement transactions (managed, however, through daily monitoring and margin calls)
- Impact on the domestic stock market and financial and capital markets from changes in the external environment such as U.S. tariff policy
- Risk of revenue fluctuation due to dependence of stock lending fee income on market conditions
- Risk that the deterioration in bond repo and repurchase agreement revenue (down 24.0% year on year to ¥3,085 million in FY2026 (ending March 2026)) continues
Last updated: June 24, 2026