Nissan Securities Group Co., Ltd.

Business Details

The sole business segment of the Nissan Securities Group. Through its core subsidiary Nissan Securities Co., Ltd., the segment conducts brokerage (retail and wholesale) and proprietary trading in equities, investment trusts, derivatives, and commodity futures. It also operates a precious metals sales business dealing in gold bullion and other precious metals. New services such as the "Precious Metals Custody Service with Custody Fee" have also been launched. Targeting individual and corporate customers both domestically and internationally, the group is an investment and financial services company built on the two pillars of financial instruments trading business and commodity futures trading business.

Recent Overview

Operating profit recovered to roughly double the prior-year level, driven by the sharp expansion in gold standard futures and higher financial income

In FY2026 (ending March 2026), total trading value of gold standard futures expanded sharply, up 228.0% year on year, driving commissions received to ¥7,574 million (up 114.1% year on year). Financial income also expanded to ¥679 million (up 326% year on year), resulting in operating profit of ¥1,467 million (up 105.9% year on year) and ordinary profit of ¥1,678 million (up 105.8% year on year). Although extraordinary losses were recorded, including an impairment loss of ¥135 million and a provision for financial instruments transaction liability reserve of ¥89 million, profit attributable to owners of parent came to ¥953 million (up 171.7% year on year). Total assets ballooned to ¥272,032 million (roughly double the level at the end of the prior fiscal year) due to a sharp increase in margin deposits and customer margin deposits. The company repurchased 2,394,600 shares of treasury stock and strengthened shareholder returns, raising the annual dividend to ¥15.00 (from ¥9.00 in the prior year). Within the scope of consolidation, NS Trade LLC was newly added, while NS Trading Co., Ltd. and Okato Shoji Co., Ltd. were excluded.

Key Products

Growth Drivers

• Trading value of gold standard futures expanded sharply, up 228.0% year on year, driving commissions received (commodity-related market derivatives trading of ¥3,289 million)
• Gold futures on NYMEX surpassed $5,000 for the first time in history in January, and rising prices and increased volatility in commodity markets contributed to more active trading
• Financial income expanded to ¥679 million, up 326% year on year (increase in margin finance income due to growth in the balances of loaned products, short-term loans, and margin transaction loans)
• Equity trading commissions received increased 146.3% year on year and beneficiary certificate trading increased 148.8% year on year, reflecting an increase in securities trading driven by improved investment appetite among individual investors
• Commodity-related commissions received from overseas market trading expanded sharply, up 273.5% year on year, driving total commodity-related transactions up 195.2% year on year
• Diversification of the customer base and revenue sources through the rollout of new services, including the newly established "Precious Metals Custody Service with Custody Fee"
• Advancement of capital-cost-conscious management and enhanced shareholder returns through treasury stock buybacks (policy of total payout ratio of 60% or more) and a dividend increase (to ¥15.00)

Risks

• A structural risk in which performance is heavily influenced by market conditions, making it difficult to disclose earnings forecasts (both the earnings forecast and dividend forecast for FY2027 (ending March 2027) remain undetermined)
• Balance sheet risk whereby margin deposits and customer margin deposits fluctuate daily depending on market trends and client positions, causing total assets and liabilities to vary significantly (total assets at fiscal year-end expanded to ¥272,032 million, roughly double the level at the end of the prior fiscal year)
• Continued decline in capital adequacy, with the equity ratio falling from 8.8% at the end of the prior fiscal year to 4.7% at the end of this fiscal year
• Risk of a global economic downturn and instability in financial markets due to the expansion of U.S. trade policy (tariffs), which triggered sharp declines in the Dow Jones Industrial Average and the Nikkei average
• Sharp fluctuations in resource prices and deterioration of market conditions due to geopolitical risks such as the Middle East situation (including U.S. and Israeli attacks on Iran) and the situation in Ukraine
• Risk of volatility in proprietary trading income, as trading gains/losses declined to 49.0% of the prior year level (¥221 million)
• Risk of impairment in the value of held assets, with extraordinary losses including an impairment loss of ¥135 million and a valuation loss on investment securities of ¥46 million recorded
• Business restructuring risk associated with changes in the scope of consolidation (one company newly added, two companies excluded) and the continued burden of goodwill amortization (¥80 million)