My name is Shigeki Kushida appointed Representative Executive Officer and President as of June 25, 2019.
In the fiscal year ended March 2019, operating revenue from Securities Lending Business and General Loan Business both grew significantly, up 28.7% and 35.4%, respectively, amid efforts to expand the sources of funding for stocks and JGBs and to meet new business needs both in Japan and overseas. Operating revenue from other businesses (mainly Securities Investment such as government bonds) also increased 9.3% year on year, despite a 27.1% year-on-year decline in Margin Loan Business.
As a results, consolidated operating revenue was 24.3bn yen (down 7.6% year-on-year), operating income was 3.9bn yen (up 2.6% year-on-year), recurring income was 5.0bn yen (up 7.7% year-on-year), and net income was 3.7bn yen (down 10.9% year-on-year). But, Net income was more than 20% above the initial estimated figure of 3.1bn yen.
For the fiscal year ending March 2020, we expect consolidated operating income of 3.6bn yen (down 9.6% year-on-year), recurring income of 4.4bn yen (down 12.8% year-on-year), and net income of 3.2bn yen (down 15.0% year-on-year).
In this July, it is scheduled to shorten the settlement cycle for stocks (T+2), and we will strive to strengthen our profitability by enhancing the convenience of our business partners through such measures as the introduction of a new stock lending scheme.
For the fiscal year ending March 2020, we forecast the dividend per share to be 22 yen based on our policy that the consolidated payout ratio shall not fall below the 60-petcent level. In addition, we have set a ceiling of 1 million shares at an acquisition price of up to 700 million yen.
Going forward, we will continue to implement appropriate shareholder return policies while considering factors such as our share value conditions.
Thank you to all our shareholders for your continued support and guidance.
Japan Securities Finance Co., Ltd.Representative Executive Officer & President