Matsui Securities Co (8628) investor relations material

Executive summary

• Operating revenues for FY2025 rose 34.3% year-over-year to ¥52,660 million, driven by robust trading activity and higher interest income.

• Net income surged 47.4% year-over-year to ¥15,480 million, reflecting higher brokerage commissions and trading income.

• Ordinary income increased 56% year-over-year, and the ordinary income ratio improved from 39% to 45%.

• ROE improved to 19.6% from 13.8% in the prior year, exceeding the 8% cost of equity target.

• Quarterly, 4QFY2025 saw operating revenues up 14% sequentially and net income slightly down 3% from 3QFY2025.

Financial highlights

• Net operating revenues grew 32.2% year-over-year to ¥49,087 million.

• Operating income surged 50.1% to ¥23,462 million, and SG&A expenses increased 19.2% to ¥25,625 million.

• Net trading income jumped 55.1% year-over-year, mainly from FX trading.

• Net financial revenue increased 29% to ¥17,305 million, supported by higher interest rates.

• Matsui's trading value increased 35% year-over-year to ¥73.7 trillion, outpacing the 32% market growth.

Outlook and guidance

• No earnings forecast provided due to market dependency; key operational figures disclosed monthly.

• For every 25bp policy rate hike, net interest income is expected to increase by ¥0.65 billion annually.

• Management will focus on expanding high value-added products and acquiring new clients.

• Dividend payout policy revised: target payout ratio raised to 70% or more from FY2026, DOE target abolished from FY2027.