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Home > About US > Management Message

Management Message

Eizo Kobayashi

In fiscal 2016, the final fiscal year of the 4th Mid-Term Management Plan, we endeavored to strengthen our system infrastructure while deepening our existing businesses.

Since the securities market turned bullish last summer, the stock loan balance on loans for margin transactions have recovered to a level surpassing that of the previous year. Moreover, other than seeing a halt of decrease in the main outstanding balance of loans due to detailed countermeasures to our customers’ needs, diversified securities operations that we have continued as part of responding to the ultra-low interest rates have succeeded, resulting in an increase of both revenues and earnings.

In order to respond to the expectations of all of our stakeholders, the Company believes that it is important to maintain a stable earnings base and strong financial standing. On this premise, under our new Mid-Term Management Plan published in March 2017, our basic policy is “To enhance enterprise value while [giving] comprehensive consideration to the earnings environment, investment plans, etc., and to ensure are returned to shareholders.”

Under the policy that the year-end dividend “consolidated payout ratio shall not fall below the 60% level,” we comprehensively considered the earnings conditions and increased dividends by two yen per share to ten yen per share for fiscal 2016 (annual dividend per share of 18 yen). For fiscal 2017, although the outstanding balance of margin transactions are anticipated to have an annual average margin of 300 billion yen exceeding the previous fiscal period for both margin loans and stock loans, we forecast a decrease in earnings due to a decrease in revenues against the backdrop of a decrease in the balance of investment securities holdings, an increase in the non-operating funds in the trust account of JSF Trust and Banking, a subsidiary of JSF, an increase in tax expenses, etc., leading to a forecast dividend per share of 16 yen. As for share buybacks, we set a ceiling of 1.5 million shares at an acquisition price of up to 1 billion yen.

Going forward, the Company will continue to implement our shareholder return policies while considering the share price conditions, etc. We ask our shareholders for your continued support and guidance for the JSF Group.
October 2017
Japan Securities Finance Co., Ltd.President