Contents
Securities Market in 2007 ……… 1
Member Firms ……… 11
Performance of Securities Industry … 14
Securities Market in 2007
Economic Overview
Looking back on 2007, the Japanese economy was characterized by overseas factors such as the sub-prime loan problems in the United States and the resulting global turmoil in financial and capital markets, the steep rise in crude oil prices and soaring prices for raw materials such as grain. There were also many domestic factors such as a sharp drop in housing starts. These factors caused a big decline in private demand and the real GDP growth rate in 2007 slowed during and after the period from April to June.
On the other hand, net exports demonstrated a continued growth trend thanks to the economic expansion achieved by BRICs, particularly China, the business recovery by the EU and other factors.
ĮĴįı Įijįı ĮIJįı ıįı IJįı ijįı Ĵįı ĵįı Ķįı ķįı （％） (Quarterly) Note: Data is year-on-year comparison.
Source: Cabinet Office
Net Exports Public Demand Private Demand Real GDP
Real GDP Growth Rate
Real GDP Growth Rate
ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
The current profit trend, which had hit the bottom in fi scal 2001 and had been on the rise up to fiscal 2006, turned downward in fiscal 2007 but remained at a high level. Totaling ￥53,489 billion, it fell ￥889 billion from the previous fi scal year.
The current profit to sales ratio was 3.4%, also down by 0.1% from the previous fiscal year.
As a whole, manufacturers recorded an increase in profits and non-manufacturers incurred a decrease in profi ts.
ɋ Ɍɋ ɍɋ Ɏɋ ɏɋ ɐɋ ɑɋ Ɍɉɋ Ɍɉɐ ɍɉɋ ɍɉɐ Ɏɉɋ Ɏɉɐ ɏɉɋ
(trillion yen) （％）
(FY) Source: Ministry of Finance
Corporate Profits
(all industries, all scales of businesses)
Current Profits (left scale) Current Profit to Sales Ratio (right scale)
Corporate Profits
(all industries, all scales of businesses)
ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ
Securities Market in 2007
The Consumer Price Index (CPI), which had been recording negative growth for six consecutive years from 2000 to 2005 under deflationary conditions, turned slightly positive in 2006. Although the CPI was almost flat in 2007, it increased by 0.9% over the first 6 months in 2008.
On the other hand, the Corporate Goods Price Index (CGPI) which had continued to be negative up to 2006 except 2005 showed an increase of 0.2% in 2007 and 0.9% for the fi rst 6 months in 2008.
The increase of crude oil prices and raw materials costs such as grains due to the expansion of demand in emerging countries provided the background to the increase in both CPI and CGPI.
Ɉɍɉɋ ɈɌɉɐ ɈɌɉɋ Ɉɋɉɐ ɋɉɋ ɋɉɐ Ɍɉɋ Ɍɉɐ （％） (CY) Note: Data is annual average except for 2008, which includes only up until June and is seasonally adjusted.
Source: Ministry of Internal Affairs and Communications, Bank of Japan Consumer Price Index
(excluding fresh food) Corporate Goods Price Index (final consumer goods)
Consumer Price and Corporate Goods Price Indices
Consumer Price and Corporate Goods Price Indices
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ
While employment circumstances differ by regions, employment conditions continued to improve moderately. The unemployment rate has declined for five consecutive years after hitting the peak in 2002. It fell below the level of 4% to 3.9% in 2007, the lowest level in the past ten years.
Backed by a growth trend for job-off ers and a contraction trend for job-seekers, the job-off ers to seekers ratio in 2007 exceeded 1.00 and has done so for three consecutive years since 2005. ɋ Ɍ ɍ Ɏ ɏ ɐ ɑ ɒ ɋɉɋ ɋɉɍ ɋɉɏ ɋɉɑ ɋɉɓ Ɍɉɋ Ɍɉɍ Ɍɉɏ
（％） (Ratio (Times))
(CY) Note: Data is annual average except for 2008, which includes only up until March and is seasonally adjusted. Source: Ministry of Internal Affairs and Communications, Ministry of Health, Labour and Welfare
Employment Conditions
Employment Conditions
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ıĹ Unemployment Rate (left scale)
Securities Market in 2007
Stock Market
In 2007, the stock market’s horizon became cloudy in the latter half of the year against a backdrop of concern over the deepening U.S. sub-prime loan problems. Although the Nikkei 225 Stock Average topped ￥18,000 early in July, it then swung downward and fell at one point below ￥15,000 toward the end of November. The Nikkei closed the year at ￥15,307.78.
The slump in stock prices that has been in eff ect since the January 2006 Livedoor scandal continued in the emerging equity market. The Nikkei Jasdaq Average Price declined toward the end of year and fell at one stage to the￥1,600 level, a low for the year. In the wake of sluggish performances by emerging companies as well as disclosure of various scandals, lead managing securities fi rms and stock exchanges tightened screening of new listings.
ı ijĭııı ĵĭııı ķĭııı Ĺĭııı IJıĭııı IJijĭııı IJĵĭııı IJķĭııı IJĹĭııı ijıĭııı
ıķ ıĸ ıĹ IJĭııı
IJĭĶıı ijĭııı ijĭĶıı Ĵĭııı ĴĭĶıı ĵĭııı ĵĭĶıı (Yen) (Yen) (CY) Nikkei 225 Stock Average
(daily average, left scale) Nikkei Jasdaq Stock Average (daily average, right scale)
Stock Price
Stock Price
Source: Nihon Keizai Shimbun
The daily average stock trading value of the 1st Section of the Tokyo Stock Exchange has increased for fi ve consecutive years after hiting the bottom in 2002, and reached the level of ￥3 trillion in 2007.
On the other hand, although the daily average stock trading value of Jasdaq Securities Exchange also reached the bottom in 2002 and displayed an upward trend until 2006, in 2007 it fell to ￥44.9 billion, almost half that of the previous year (￥93.9 billion). This drop was supposedly due to the cautious investing attitude of the market’s main participants, individual investors. These investors were negatively influenced by the continuous discovery of market abuse after the Livedoor scandal and the downward revisions of corporate business performances.
ɋɉɋ ɋɉɏ ɋɉɓ Ɍɉɍ Ɍɉɑ ɍɉɋ ɍɉɏ ɍɉɓ Ɏɉɍ Ɏɉɑ ɏɉɋ ɋ Ɍɋ ɍɋ Ɏɋ ɏɋ ɐɋ ɑɋ ɒɋ ɓɋ ɔɋ Ɍɋɋ (trillion yen) (billion yen)
（CY） Note: Data for Jasdaq Securities Exchange before 2004 comes from the previous Jasdaq Market. Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12. The figure of NEO has been included since November 13, 2007.
Source: Tokyo Stock Exchange, Jasdaq Securities Exchange TSE 1st Section (left scale) Jasdaq Securities Exchange (right scale)
Daily Average Stock Trading Value
of TSE (1st Section) and Jasdaq
Daily Average Stock Trading Value
of TSE (1st Section) and Jasdaq
Securities Market in 2007
In 2007, equity financing (paid-in capital increase) by publicly listed companies totaled ￥2.0 trillion, decreasing 25.9% from ￥2.7 trillion in the previous year. Looking at issuing categories, while the amount of public off erings remained at ￥0.5 trillion, about 30% of the ￥1.6 trillion recorded in the previous year, private placement increased 34.8% year on year to ￥1.6 trillion.
ı ij ĵ ķ Ĺ IJı IJij (trillion yen)
(CY) Notes: 1. Private placements and others include preferred stocks and private placements.
2. Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12.
Source: Tokyo Stock Exchange, Japan Securities Dealers Association
Equity Financing (paid-in capital increase) by Corporations
Public Offerings Rights Offerings Private Placements and Others
Equity Financing (paid-in capital increase) by Corporations
ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ
In 2007, a total of 117 companies went public, down by 64 companies over the previous year. Total capital raised through IPOs contracted by 70.3% to ￥177 billion.
ı ıįIJ ıįij ıįĴ ıįĵ ıįĶ ıįķ ıįĸ
ı ijĶ Ķı ĸĶ IJıı IJijĶ IJĶı IJĸĶ ijıı
(trillion yen) (companies)
(CY) Notes: 1. IPOs include public offerings by foreign companies that are listed in Japan. 2. Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12.
Source: Japan Securities Dealers Association
Number of Newly Listed Companies and IPO Amounts
Number of Newly Listed Companies and IPO Amounts
ıij ıĴ ıĵ ıĶ ıķ ıĸ
Securities Market in 2007
Bond Market
Looking at interest rate trends during 2007, since the guiding target level for the short-term rate (uncollateralized overnight call money) was raised to 0.5% from 0.25% in the BOJ’s monetary policy meeting in February, and the short-term rate moved stably around that level.
The long-term interest rate remained more or less at the same level until mid-May due to the cautious view of future economic trends. Thereafter, thanks to improved sentiment about domestic and overseas business conditions, stronger U.S. employment statistics and growth in domestic orders for machinery, etc., it rose substantially from early June to early July, reaching the level of 1.9% at one point. However, the long-term interest rate began to decline due to the downward reversal in European and U.S. interest rates and the sharp drop in the Nikkei 225 infl uenced by the sub-prime loan problems. Over the remaining period to the end of the year, it fell to the level of 1.4% for the fi rst time since the beginning of 2006, which was just before the termination of the quantitative relaxation policy.
ıķ ıĸ ıĹ
ıįı ıįIJ ıįij ıįĴ ıįĵ ıįĶ ıįķ ıįĸ ıįĹ ıįĺ IJįı
IJįı IJįĶ ijįı ijįĶ
（％） （％）
(CY)
Long-term and Short-term Interest Rates
Call Rates
(uncollateralized overnight, left scale) Simple Yield of newly issued 10-year JGB (daily average, right scale)
Long-term and Short-term Interest Rates
Source: Bank of Japan, Tokyo Stock Exchange
In 2007, the total OTC bond trading volume (including Repos) increased by 32.1% to ￥12,097 trillion of which the trading volume of JGBs rose 33.8%, to ￥11,890 trillion. In particular, super-long-term and long-term JGBs with terms of 10 years or more climbed 40.2%, to ￥6,142.5 trillion.
ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ ı
ijı ĵı ķı Ĺı IJıı IJijı IJĵı
(hundred trillion yen)
(CY) Notes: “Short-term JGBs” are the total of financial bills and treasury bills. Source: Japan Securities Dealers Association
OTC Bond Trading (Including Repos)
Short-term JGBs Super-long-term,
Long-term, Medium-term JGBs Others
Securities Market in 2007
In 2007, corporate bond financing in the Japanese market increased by 13.3% year on year to ￥9.4 trillion.
Corporate straight bond issuance expanded by 34.9%, to ￥9.2 trillion. Issuance of convertible-type bonds with subscription rights decreased by 91.0%, to ￥0.1 trillion.
While the trend for equity financing was sluggish as a whole, issuance of corporate bonds increased substantially and approached the level of ￥10 trillion.
ı ij ĵ ķ Ĺ IJı IJij IJĵ (trillion yen)
(CY) Notes: 1. “Straight Corporate Bonds” include asset backed bonds.
2. Following the revision of the Commercial Code in 2002, “Convertible Bonds” were renamed “Convertible-type Bonds with Subscription Rights”. Source: Japan Securities Dealers Association
Corporate Bond Financing
Straight Corporate Bonds Convertible-type Bonds with Subscription Rights
ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ
Corporate Bond Financing
In 2007, public and corporate bonds issuance decreased by 16.2% to ￥176.5 trillion. By bond category, JGB issuance fell by 20.0% to ￥140.4 trillion. Issuance of municipal bonds declined by 5.4% to ￥5.7 trillion. Government- guaranteed bonds issuance increased by 0.6% to ￥4.4 trillion and FILP (Fiscal Investment and Loan Program) agency bonds issuance edged up by 1.4%, to ￥4.5 trillion. On the other hand, straight corporate bonds increased 34.9% to ￥9.2 trillion.
Looking at the composition of bond issuance volume, the breakdown was as follows: JGBs, 79.5%; municipal bonds, 3.2%; government-guaranteed bonds, 2.5%; FILP agency bonds,
2.6%; and straight corporate bonds, 5.2%. Notes: 1. Excluding Private Placement Municipal Bonds
2. “Straight Corporate Bonds” include “Asset Backed Bonds”. Source: Japan Securities Dealers Association
Composition of Bond Issuance
JGBs
Municipal Bonds Gov.-guaranteed Bonds
FILP Agency Bonds Straight Corporate Bonds Others
ĸĺįĶɓ ķįĺɓ
Ķįijɓ ijįķɓ
ijįĶɓ
Ĵįijɓ
Securities Market in 2007
Investment Trust
Net assets of investment trusts as of the end of 2007 increased by ￥14,411 billion to ￥119,478 billion, having set new record levels for two consecutive years.
Looking at the breakdown, publicly offered investment trusts accounted for ￥79,761 billion, real-estate investment trusts contributed ￥3,687 billion and private placement trusts accounted for ￥36,031 billion.
Such growth in net assets can be attributed to the popularity of monthly dividend type funds, etc.
ı ijı ĵı ķı Ĺı IJıı IJijı (trillion yen)
(End of CY) Source: The Investment Trusts Association
Net Assets Held in Investment Trusts
Publicly Offered Investment Trusts Real-estate Investment Trusts Private Placement Investment Trusts
ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ
Net Assets Held in Investment Trusts
Among publicly offered contractual-type securities investment trusts, stock investment trusts posted an increase of net assets for the seventh consecutive year since the end of 2000. At ￥66,784 billion, stock investment trusts were up ￥11,127 billion from the end of the previous year.
On the other hand, net assets of bond investment trusts decreased for the second consecutive year to ￥10,577 billion, down ￥518 billion over the previous year.
Net assets of MMFs, which had decreased for seven consecutive years since 1999, recovered to ￥2,917 billion, up ￥224 billion from a year earlier.
ı IJı ijı Ĵı ĵı Ķı ķı ĸı Ĺı ĺı （trillion yen）
（End of CY） Source: The Investment Trusts Association
Net Assets Held in Publicly Offered
Contractual-type Securities Investment Trusts
Stock Investment Trusts Bond Investment Trusts Money Management Funds
Securities Market in 2007
Among publicly offered contractual-type stock investment trusts, unit-type trusts had net assets of ￥1,875 billion, almost the same amount as in the previous year.
Net assets held in open type trusts (excluding ETF) recorded an increase of net assets for the fi ve consecutive years since the end of 2002. At ￥61,030 billion, this investment trust class was up ￥11,364 billion from the end of the previous year.
ETFs, which had steadily expanded since their introduction in 2001, declined for the fi rst time under pressure from the stock market decline since the middle of the year 2007. Totaling ￥3,879 billion, ETFs were down ￥238 billion
year on year. ı
IJı ijı Ĵı ĵı Ķı ķı ĸı (trillion yen)
(End of CY) Source: The Investment Trusts Association
Net Assets Held in Publicly Offered
Contractual-type Stock Investment Trusts
Unit Type
Open Type (excluding ETF) ETF
ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ
Net Assets Held in Publicly Offered
Contractual-type Stock Investment Trusts
Among private placement contractual-type securities investment trusts, net assets of stock investment trusts increased for the eighth consecutive year since 1999. Totaling ￥35,407 billion, this net asset class rose ￥3,220 billion from the end of the previous year.
On the other hand, net assets of bond investment trusts decreased for the fourth consecutive year. At ￥624 billion, this category was down ￥176 billion from a year earlier.
ı Ķ IJı IJĶ ijı ijĶ Ĵı ĴĶ ĵı (trillion yen)
(End of CY) Source: The Investment Trusts Association
Net Assets Held in Private Placement
Contractual-type Investment Trusts
Stock Investment Trusts Bond Investment Trusts
ıIJ ıij
ĺĺ ıı ıĴ ıĵ ıĶ ıķ ıĸ
Securities Market in 2007
Investor Trend
Among institutional investors, life and non-life insurance companies and pension funds have reduced their net investments in securities other than equities in both fiscal 2006 and fiscal 2007. In fiscal 2007, they made investments of ￥5.1 trillion, down ￥5.8 trillion from the previous fi scal year.
Their investments in stocks and other equities grew ￥3.2 trillion from the previous fi scal year, rebounding to a net increase of ￥2.7 trillion. On the other hand, their investments in foreign securities decreased for the third consecutive year since fi scal 2005. Recording a net decline of ￥3.0 trillion, their investments in foreign securities were down ￥3.8 trillion
from a year earlier. ĮIJı
ĮĶ ı Ķ IJı IJĶ ijı （trillion yen）
（FY） Source: Bank of Japan
Investments by Institutional Investors
(Insurance Companies and Pension Funds)
ıĴ ıĵ ıĶ ıķ ıĸ
Investments by Institutional Investors
(Insurance Companies and Pension Funds)
Securities Other than Stocks Stocks and Other Equities Foreign Securities
Looking at individual investor trends, securities investment totaled ￥14.0 trillion, expanding by ￥4.6 trillion from FY 2006. By category, while investments in securities other than stocks̶considered to mainly be JGBs̶decreased, the decline in investments in stocks and other equities contracted. Investments in foreign securities amounted to ￥3.6 trillion, growing by ￥3.7 trillion from minus ￥73 billion recorded in the previous fiscal year. The growth in foreign securities investment seemed to refl ect active investments by households in foreign-currency denominated bonds with high-interest rates based on speculation that the Yen depreciation would be
prolonged. ĮIJı
ĮĶ ı Ķ IJı IJĶ (trillion yen)
(FY) Source: Bank of Japan
Investments by Individual Investors (Household)
ıĸ ıķ
ıĴ ıĵ ıĶ
Investments by Individual Investors (Household)
Securities Market in 2007
Household financial assets at the end of March 2008 decreased by ¥55.3 trillion, to ¥1,490 trillion.
Looking at the breakdown, stocks and other equities dropped ￥61.2 trillion, to ￥139.2 trillion.
On the other hand, cash and deposits increased by ¥6.9 trillion, to ￥775.1 trillion, exceeded the majority of total assets, and bonds rose by ￥1.0 trillion, to ￥44.3 trillion. From these data, further to the impact of stock price decline, it is estimated that individual investors prefer relatively-safe products like
deposits and bonds to risk bearing products. ı
ijı ĵı ķı Ĺı IJıı （%）
(End of FY)
Note: “Bonds” include trust beneficiary rights. Source: Bank of Japan
Composition of Household Financial Assets
Cash and Deposits Investment Trusts
Bonds
Insurance and Pension Reserves
Stocks and Other Equities Others
ıĶ ıķ ıĸ
Composition of Household Financial Assets
According to a stockholding survey at the end of March 2008, total investment assets were ¥400.2 trillion, decreasing in all sectors of investments by ¥168.3 trillion year on year. This decline resulted mainly because of a slump in stock markets in reaction to the global financial market turmoil triggered by sub-prime loan issues.
The proportion of stockholdings by foreigners had been in an upward trend until fi scal 2006 after hitting the bottom in fi scal 2002. However, foreigners were net sellers of Japanese stocks in fiscal 2007. Consequently, their proportion slipped to 27.6%, decreasing by 0.4 % from previous fi scal year.
ı IJı ijı Ĵı ĵı Ķı ķı ĸı Ĺı ĺı IJıı （%）
(End of FY)
Notes: 1. “Governments” include central and regional governments.
2. “Financial Institutions” do not include “Pension Trusts”, “Investment Trusts” and “Insurance Companies”.
3. Figures cover all exchange-listed stocks excluding foreign stocks. Source: Tokyo Stock Exchange
Stockholdings by Type of Investors (Market Value Basis)
Individuals Pension Trusts Governments Investment Trusts Financial Institutions Insurance Companies Business Corporations Foreigners Securities Firms
ıķ ıĸ ıĶ ıĵ ıĴ ıij ıIJ ıı ĺĺ ĺĹ
Member Firms
Number of Member Firms
The number of regular members (securities fi rms) as of the end of March 2008 was 317, increasing by 9 from the year before mainly due to newcomers.
ĮIJĶ ĮIJı ĮĶ ı Ķ IJı IJĶ ijı ijĶ Ĵı
ɍɏɋ ɍɐɋ ɍɑɋ ɍɒɋ ɍɓɋ ɍɔɋ Ɏɋɋ ɎɌɋ Ɏɍɋ ɎɎɋ
(End of FY) Source: Japan Securities Dealers Association
Regular Members
ıĴ ıĵ ıĶ ıķ ıĸ
Regular Members
Enrollment and Withdrawal (right scale) Regular Members (left scale)
The number of special members as of the end of March 2008 was 220, increasing by 3 from the previous year. A breakdown by categories shows 6 city banks (unchanged), 16 trust banks (up by 2), 64 regional banks (unchanged), 45 second-tier regional banks (down by 1), 37 shinkin banks (up by 1), 12 life insurance companies (down by 4), 10 non-life insurance companies (down by 3) and others.
ı Ķı IJıı IJĶı ijıı ijĶı Ĵıı
(End of FY) Note: 1. Data for 1994 is as of April 1, when special members enrolled in JSDA. 2. City Banks includes city banks and trust banks.
Source: Japan Securities Dealers Association
City Banks Regional Banks Second-tier Regional Banks Shinkin Banks Life Insurance Companies Non-Life Insurance Companies Other
Special Members by Category
ĺĵ ıĶ ıķ ıĸ
Special Members by Category
Member Firms
Securities Firms' Employees
The number of employees at the end of December 2007 was approximately 99,000, rising by about 7,000 from the year before.
ĸĶ Ĺı ĹĶ ĺı ĺĶ IJıı IJıĶ (thousands)
(End of CY) Source: Japan Securities Dealers Association
ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ ıĸ
Number of Securities Firms’ Employees
Number of Securities Firms’ Employees
Securities Firms' Domestic Offices
The number of securities firms’ domestic branches as of the end of March 2008 was 1,561, advancing by 1.8% from the previous fi scal year.
The number of business offi ces was 418, up 12.3%. The number of domestic branches and offices excluding head offices rose 3.8% year on year, to 1,979.
ı Ķıı IJĭııı IJĭĶıı ijĭııı ijĭĶıı
Branches Business Offices
Securities Firms’ Domestic Offices
Member Firms
4Securities Sales Representatives
The number of securities sales representatives a s o f t h e e n d o f D e ce m b e r 20 07 w a s approximately 430,000, decreasing by about 3,000 year on year. The number of securities sales representatives belonging to securities irms was 81,000, expanding by roughly 5,000 from the year before. The number of securities sales representatives belonging to registered inancial institutions was 349,000, declining by about 8,000 from a year earlier.
ı Ķı IJıı IJĶı ijıı ijĶı Ĵıı ĴĶı ĵıı
(thousands)
(End of CY) Source: Japan Securities Dealers Association
Securities Sales Representatives
Regular Members Special Members
ıĶ
ıĵ ıķ ıĸ ıĴ
ıij ıIJ ıı ĺĺ
Securities Sales Representatives
5Securities Sales Representatives of Financial
Instruments Intermediary Service Providers
The number of securities sales representatives of financial instruments intermediary service providers at the end of December 2007 jumped to 101,000, rising by 99,000 year on year, due to the establishment of Japan Post Network following the postal service privatization.
Among them, there were about 2,000 securities sales representatives of financial instruments intermediary service providers affiliated with regular members, up by roughly 300 from a year earlier. The number of them affiliated with special members amounted to 98,000, up by the same number from the previous iscal year.
*This figure does not include individual financial instruments intermediary service providers.
ɋ ɍ ɏ ɔɒ ɔɓ ɔɔ
(
(
Note: Excluding Individual Financial Instruments Intermediary Service Providers. Source: Japan Securities Dealers Association
Num
ber of Securities Sales Representatives
of Financial Instruments Business Operators
Regular Members Special Members
Number of Securities Sales Representatives
of Financial Instruments Business Operators
ıķ ıĸ
ıĶ
P
erformance of Securities Industry
Operating Revenues of Member Securities Firms
Looking at the overall performance of the industry (308 securities fi rms*) during the fi scal year 2007 ended March 2008, the industry recorded total operating revenues of ￥4,583 billion, decreasing by 2.2% from the previous year due to the lower level of commissions and trading gain in light of the stagnation in the stock market triggered by sub-prime loan problems. Among operating revenues, commissions declined by 4.2% to ￥2,830 billion and trading gain fell by 32.3% to ￥579 billion. On the other hand, financial revenues advanced by 35.6% to ￥1,150 billion due to the increase of interest income from securities lending.
* Of a total of 317 securities firms at the end of March 2008, 9 domestic securities fi rms are excluded that were pre-startup operation or under business suspension.
ı IJįı ijįı Ĵįı ĵįı Ķįı ķįı (trillion yen) (FY ended)
Operating Revenues of Member Securities Firms
ıĸįĴ ıĹįĴ ıĵįĴ ıĶįĴ ıķįĴ
Note: Securities firms that were not in business as of the end of March in each year are excluded.
Source: Japan Securities Dealers Association
Operating Revenues of Member Securities Firms
Commission Trading Gain Financial Revenue
Operating Expenses of Member Securities Firms
Operating expenses for the fi scal year 2007 ended March 2008 increased by 8.4% to ￥4,003 billion. Among operating expenses, transaction expenses decreased by 0.8% to ￥581 billion, employment cost was cut by 2.9% to ￥1,390 billion. On the other hand, real estate and equipment expenses rose by 8.4% to ￥325 billion and data processing and office supplies expenses by 14.6% to ￥419 billion. Selling and general administrative costs increased by 2.6% to ￥3,124 billion as a whole. Along with the increase of financial revenue, fi nancial expenses rose signifi cantly by 35.9% to ￥879 billion.
ı ıįĶ IJįı IJįĶ ijįı ijįĶ Ĵįı ĴįĶ ĵįı (trillion yen) (FY ended)
Operating Expenses of Member Securities Firms
Transaction Expenses Real Estate & Equipment Costs Financial Expenses
Employment Cost Data Processing & Office Supplies Costs
ıķįĴ
ıĶįĴ ıĸįĴ ıĹįĴ ıĵįĴ ıĴįĴ ıijįĴ ıIJįĴ ııįĴ ĺĺįĴ
Operating Expenses of Member Securities Firms
P
erformance of Securities Industry
Current Profits/Losses of Member Securities Firms
Current profi ts of the fi scal year 2007 ended March 2008 substantially decreased by 35.2% to ￥658 billion.
Įıįij ıįı ıįij ıįĵ ıįķ ıįĹ IJįı IJįij IJįĵ IJįķ IJįĹ (trillion yen)
(FY ended) Note: Securities firms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
Current Profits/ Losses of Member Securities Firms
ıķįĴ
ıĶįĴ ıĸįĴ ıĹįĴ ıĵįĴ
ıĴįĴ ıijįĴ ıIJįĴ ııįĴ ĺĺįĴ
Current Profits/ Losses of Member Securities Firms
Net Income/Loss and ROE of Member Securities Firms
Net income for the fiscal year 2007 ended March 2008 decreased by ￥734 billion to -￥146 billion. Return on equity (ROE) was -2.0%, a substantial worsening of -10.7% compared with the previous fi scal year’s 8.7%.
Not counting the losses of some major s e cu r it i e s f i r m s w h i c h re g i s te re d l a rg e extraordinary losses related to sub-prime loan problems, net income was in the black by ￥292 billion and the ROE was 4.5%.
ĮIJįĶ ĮIJı ĮıįĶ ıįı ıįĶ IJįı IJįĶ ijįı
ĮIJĶ ĮIJı ĮĶ ı Ķ IJı IJĶ ijı Net Income (left scale)
ROE (right scale) (trillion yen)
(FY ended) （%）
Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax profits divided by average stockholders equity.
Source: Japan Securities Dealers Association
Net Income/ Loss and ROE of Member Securities Firms
P
erformance of Securities Industry
Net Income/Loss by Type of Member Securities Firms
Looking at net income by category of firms for the fiscal year 2007 ended March 2008, each category recorded substantial declines compared with the previous year’s income: major securities fi rms* down by ￥601 billion to -￥268 billion, foreign securities fi rms down by ￥80 billion to -￥8.5 billion and other domestic securities firms down by ￥53 billion to ￥130 billion.
* Not counting the losses of some major securities fi rms which registered large extraordinary losses related to sub-prime loan problems, net income of major securities fi rms was ￥170 billion.
Įĵıı ĮĴıı Įijıı ĮIJıı ı IJıı ijıı Ĵıı ĵıı Ķıı
ķıı Major Firms
Foreign Firms Other Domestic Firms (billion yen)
(FY ended) Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded. 2. Major securities firms: Daiwa Securities, Co., Ltd., Daiwa Securities SMBC Co., Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities firms capitalized at a hundred billion yen or more Source: Japan Securities Dealers Association
Net Income/ Loss by Type of Member Securities Firms
ıĵįĴ ıĶįĴ ıķįĴ ıĸįĴ ıĹįĴ
Net Income/ Loss by Type of Member Securities Firms
ROE by Type of Member Securities Firms
Looking at ROE by category of fi rms for the fiscal year 2007 ended March 2008, each category recorded substantially negative ROE compared with the previous year: 20.6% decrease to -9.7% in major securities firms*, 57.3% decrease to -25.6% in foreign securities fi rms and 2% decrease to 3.2% in the rest of domestic securities fi rms.
* Not counting the losses of some major securities fi rms which registered large extraordinary losses related to sub-prime loan problems, ROE of major fi rms was 7.1%.
ĮĴı Įijı ĮIJı ı IJı ijı Ĵı ĵı
Ķı Major FirmsForeign Firms Other Domestic Firms （％）
(FY ended) Notes: 1. Firms that were not in business as of the end of March in each year are excluded.
ROE by Type of Member Securities Firms
ıĵįĴ ıĶįĴ ıķįĴ ıĸįĴ ıĹįĴ
Statistical Data
Statistical Data
◉
Real GDP Growth Rate
（％）
Quarterly Real GDP Growth Rate
(Year-on-year comparison) Private Demand Public Demand Net Exports
2002 1Q -1.9 -2.3 0.1 0.3
2Q -0.2 -1.3 0.2 0.9
3Q 1.5 0.5 0.3 0.7
4Q 1.7 0.9 -0.1 0.9
2003 1Q 1.3 1.1 -0.3 0.5
2Q 1.3 0.9 0.0 0.4
3Q 1.1 0.6 -0.3 0.8
4Q 1.9 1.4 -0.4 0.9
2004 1Q 4.2 2.7 0.3 1.2
2Q 3.2 2.5 -0.3 1.2
3Q 2.9 2.5 -0.3 0.7
4Q 0.8 0.8 -0.2 0.3
2005 1Q 1.1 1.7 -0.5 -0.1
2Q 2.0 2.2 -0.2 0.0
3Q 2.0 1.6 0.1 0.2
4Q 2.6 2.0 -0.3 0.9
2006 1Q 3.0 2.3 -0.3 1.0
2Q 2.3 2.0 -0.3 0.7
3Q 2.0 1.6 -0.7 1.1
4Q 2.4 2.2 -0.5 0.7
2007 1Q 3.2 2.3 -0.1 0.9
2Q 1.8 0.8 0.0 1.1
3Q 1.7 0.5 0.0 1.2
4Q 1.6 0.1 0.2 1.4
2008 1Q 1.2 -0.2 0.0 1.4
2Q 0.7 -0.3 -0.2 1.2
Source: Cabinet Offi ce
Securities Market in 2007
Statistical Data
◉
Corporate Profi ts (all industries, all scales of businesses)
FY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Current Profi ts
(trillion yen) 21 27 36 28 31 36 45 52 54 53 Current Profi t to
Sales Ratio(%) 1.5 1.9 2.5 2.1 2.3 2.7 3.1 3.4 3.5 3.4
Source: Ministry of Finance
◉
Consumer Price and Corporate Goods Price Indices
（％） CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Consumer Price Index
(excluding fresh food) 0.0 -0.5 -0.8 -0.9 -0.3 -0.1 -0.1 0.1 0.0 0.9 Corporate Goods Price Index
(fi nal consumer goods) -1.4 -1.3 -1.4 -1.9 -1.6 -0.6 0.0 -0.2 0.2 0.9
Note: Figures are annual average except for 2008, which includes only up until June and is seasonally adjusted. Source: Ministry of Internal Aff airs and Communications, Bank of Japan
◉
Employment Conditions
CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Unemployment Rate
(%) 4.7 4.7 5.0 5.4 5.2 4.7 4.4 4.1 3.9 3.9 Job-off ers to Seekers Ratio (excluding new school
graduates but including part-time workers) (Ratio (Times)) 0.5 0.6 0.6 0.5 0.6 0.8 1.0 1.1 1.0 0.9
Note: Figures are annual average except for 2008, which include only up until June and are seasonally adjusted. Source: Ministry of Internal Aff airs and Communications, Ministry of Health, Labour and Welfare
◉
Daily Average Stock Trading Value of TSE (1st Section) and Jasdaq
(billion yen) CY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
TSE 1st Section 388 726 978 812 775 971 1,316 1,874 2,598 3,001 Jasdaq Securities
Exchange 6 49 46 20 14 25 51 79 93 44
Note: Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. Figures for Jasdaq Market in 2004 were only for the period from January 1 to December 12. The fi gure of NEO has been included since November 13, 2007.
Statistical Data
◉
Equity Financing (paid-in capital increase) by Corporations
(billion yen) CY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Public Off erings 333 527 690 1,235 194 642 929 754 1,620 495 Rights Off erings 0 0 10 32 − 2 11 4 3 9 Private Placements and Others 1,209 9,531 1,223 838 1,558 2,801 2,113 2,435 1,165 1,571 Total 1,543 10,059 1,924 2,106 1,753 3,446 3,054 3,193 2,788 2,078
Notes: 1. Private placements and others include preferred stocks and private placements. 2. “-“ indicates nil.
3. Total fi gures of domestic stock exchanges.
4. Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. Figures for Jasdaq Market in 2004 were only for the period from January 1 to December 12.
Source: Tokyo Stock Exchange, Japan Securities Dealers Association
◉
Number of Newly Listed Companies and IPO Amounts
CY 2002 2003 2004 2005 2006 2007
Number of Newly Listed Companies 123 118 171 157 181 117 IPO Amounts
(billion yen) 147 347 421 402 594 176
Notes: 1. IPOs include public off erings by foreign companies that are listed in Japan. 2. Total fi gures of domestic stock exchanges
3. Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. Figures for Jasdaq Market in 2004 were only for the period from January 1 to December 12.
Source: Japan Securities Dealers Association
◉
OTC Bond Trading (Including Repos)
(trillion yen) CY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Total 2,606.7 3,836.7 4,061.1 4,058.0 3,665.9 5,110.2 6,481.4 6,758.2 9,153.0 12,096.7 JGBs 2,497.2 3,734.1 3,898.0 3,863.4 3,429.8 4,836.1 6,178.6 6,428.0 8,881.7 11,890.1 Short-term JGBs 1,421.4 2,606.9 2,621.9 2,243.2 1,489.9 1,933.6 2,179.2 1,817.5 1,872.1 2,554.9 Super-long-term, Long-term,
Medium-term JGBs 1,075.6 1,127.0 1,275.8 1,619.9 1,939.6 2,902.2 3,999.1 4,610.5 7,009.5 9,335.3 Others 109.7 102.8 163.4 194.9 236.4 274.4 303.1 330.2 271.3 206.5
Notes: “Short-term JGBs” are the total of fi nancial bills and treasury bills. Source: Japan Securities Dealers Association
Statistical Data
◉
Corporate Bond Financing
(billion yen) CY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Straight Corporate Bonds 12,784 7,498 8,276 8,609 7,736 7,728 5,879 7,088 6,858 9,258 Convertible-type Bonds
with Subscription Rights 246 592 357 300 427 72 561 889 1,424 127 Bonds with Subscription Rights － － － － － － － － － － Total 13,030 8,090 8,633 8,909 8,163 7,800 6,440 7,977 8,282 9,385
Notes: 1. “Straight Corporate Bonds” include “Asset Backed Bonds” 2. “-” indicates nil.
3. Following the revision of the Commercial Code in 2002, “Convertible Bonds” and “Bonds with Warrants to Allocate New Shares” were renamed “Convertible-type Bonds with Subscription Rights” and Bonds with Subscription Rights” respectively. Source: Japan Securities Dealers Association
◉
Composition of Bond Issuance, etc.
（％） CY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 JGBs 64.0 70.4 71.3 77.1 81.3 80.8 82.2 81.9 83.3 79.5 Municipal Bonds 1.3 1.4 1.5 1.3 1.4 2.2 2.5 2.7 2.9 3.2 Gov.-guaranteed Bonds 1.7 2.0 3.3 2.8 2.3 3.4 3.9 3.4 2.1 2.5 FILP Agency Bonds － － － 0.3 1.3 1.3 1.5 1.8 2.1 2.6 Straight Corporate Bonds 9.7 5.2 5.6 5.0 4.3 4.0 2.8 3.1 3.3 5.2 Others 23.3 21.0 18.3 13.6 9.4 8.2 7.2 6.9 6.4 6.9 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Notes: 1. Issuing amounts of JGBs refer to the amounts sold in the market. 2. Excluding Private Placement Municipal Bonds
3. “Straight Corporate Bonds” include “Asset Backed Bonds”.
◉
Amount of Bond Issuance
Statistical Data
◉
Net Assets Held in Investment Trusts
（billion yen） End of CY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Publicly Off ered
Investment Trusts 42,739 51,353 49,399 45,280 36,016 37,435 40,996 55,347 68,927 79,760 Real-estate
Investment Trusts − − − 236 441 766 1,246 2,050 3,153 3,687 Private Placement
Investment Trusts − 1,544 3,693 6,106 7,381 10,384 15,596 25,643 32,987 36,030 Total 42,739 52,897 53,092 51,624 43,839 48,586 57,839 83,040 105,067 119,478
Source: The Investment Trusts Association
◉
Net Assets Held in Publicly Off ered Contractual-type Securities Investment Trusts
（billion yen） End of CY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Stock Investment
Trusts 11,496 15,696 14,610 14,905 16,372 21,339 27,435 40,828 55,657 66,784 Bond Investment
Trusts 16,963 18,866 23,817 22,652 14,121 11,746 9,955 11,498 10,576 10,059 Money Management
Funds 14,279 16,790 10,971 7,722 5,521 4,350 3,606 3,020 2,693 2,917 Total 42,739 51,353 49,399 45,280 36,016 37,435 40,996 55,347 68,927 79,760
Source: The Investment Trusts Association
◉
Net Assets Held in Publicly Off ered Contractual-type Stock Investment Trusts
（billion yen） End of CY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Unit Type 740 573 373 617 697 1,161 1,799 1,945 1,875 1,876 Open Type
(excluding ETF) 10,755 15,122 14,236 13,398 13,165 17,216 22,522 35,180 49,665 61,029 ETF − − − 889 2,509 2,962 3,113 3,703 4,116 3,878 Total 11,496 15,696 14,610 14,905 16,372 21,339 27,435 40,828 55,657 66,784
Source: The Investment Trusts Association
◉
Net Assets Held in Private Placement Contractual-type Investment Trusts
（billion yen） End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007
Stock Investment
Trusts 1,240 3,185 5,040 6,469 9,388 14,646 24,723 32,186 35,406 Bond Investment
Trusts 303 507 1,066 911 995 949 919 800 623
Total 1,544 3,693 6,106 7,381 10,384 15,596 25,643 32,987 36,030
Source: The Investment Trusts Association
Statistical Data
◉
Investments by Institutional Investors (Insurance Companies and Pension Funds)
（trillion yen）
FY 2003 2004 2005 2006 2007
Securities Other than Stocks 7.2 14.5 14.5 10.9 5.1 Stocks and Other Equities -8.4 -2.6 -4.5 -0.4 2.6
Foreign Securities 7.1 3.5 4.3 0.8 -2.9
Source: Bank of Japan
Investor Trend
◉
Investments by Individual Investors (Household)
（trillion yen）
FY 2003 2004 2005 2006 2007
Securities Other than Stocks -1.2 7.9 12.5 12.4 10.9 Stocks and Other Equities -2.4 1.2 -2.4 -2.9 -0.4 Foreign Securities 0.0 -0.4 -1.2 0.0 3.5
Source: Bank of Japan
◉
Household Financial Assets
（trillion yen）
End of FY 2005 2006 2007
Cash and Deposits 768.6 769.0 775.1
Bonds 40.3 43.2 44.2
Stocks and Other Equities 197.0 200.3 139.1
Investment Trusts 52.1 64.7 63.0
Insurance and Pension 391.1 400.5 402.0
Others 69.5 67.0 65.9
Total 1,518.9 1,544.9 1,489.6
Statistical Data
◉
Stockholdings by Type of Investors (Market Value Basis)
（trillion yen） End of FY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Individuals 62.4 82.9 68.9 61.0 48.6 75.5 78.1 109.4 102.8 72.9 Governments 0.6 0.5 0.5 0.5 0.5 0.7 0.7 0.9 1.8 1.5
Financial
Institutions 72.5 85.8 70.5 61.7 47.5 67.5 66.7 93.1 87.0 59.4 Pension
Trusts 15.6 23.1 19.6 18.6 13.6 16.5 15.2 20.7 20.0 14.0 Investment
Trusts 4.4 10.2 9.8 10.3 9.3 13.6 14.8 25.0 26.4 19.5 Insurance
Companies 43.1 49.2 38.5 31.6 21.9 29.5 29.2 42.4 43.2 30.7 Business
Corporations 83.5 120.1 77.4 67.5 50.7 80.4 84.5 121.4 117.5 85.1 Foreigners 46.5 85.9 66.5 56.7 41.8 80.6 91.5 153.5 159.2 110.6
Securities
Firms 1.8 3.8 2.5 2.1 2.0 4.4 4.4 7.9 10.2 6.2 Total 330.8 461.9 354.7 310.5 236.4 369.2 385.6 574.5 568.6 400.2
Source: Tokyo Stock Exchange
◉
Composition of Household Financial Assets
（％）
End of FY 2005 2006 2007
Cash and Deposits 50.6 49.8 52.0
Bonds 2.7 2.8 3.0
Stocks and Other Equities 13.0 13.0 9.3
Investment Trusts 3.4 4.2 4.2
Insurance and Pension 25.8 25.9 27.0
Others 4.6 4.3 4.4
Total 100.0 100.0 100.0
Statistical Data
◉
Stockholdings by Type of Investors (Market Value Basis)
（％） End of FY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Individuals 18.9 18.0 19.4 19.7 20.6 20.5 20.3 19.1 18.1 18.2 Governments 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.4
Financial
Institutions 21.9 18.6 19.9 19.9 20.1 18.3 17.3 16.2 15.3 14.8 Pension
Trusts 4.7 5.0 5.5 6.0 5.8 4.5 4.0 3.6 3.5 3.5 Investment
Trusts 1.4 2.2 2.8 3.3 4.0 3.7 3.9 4.4 4.7 4.9 Insurance
Companies 13.0 10.7 10.9 10.2 9.3 8.0 7.6 7.4 7.6 7.7 Business
Corporations 25.2 26.0 21.8 21.8 21.5 21.8 21.9 21.1 20.7 21.3 Foreigners 14.1 18.6 18.8 18.3 17.7 21.8 23.7 26.7 28.0 27.6
Securities
Firms 0.6 0.8 0.7 0.7 0.9 1.2 1.2 1.4 1.8 1.6
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Notes: 1. “Governments” include central and regional governments.
2. “Financial Institutions” do not include “Pension Trusts”, “Investment Trusts” and “Insurance Companies”. 3. Figures cover all exchange-listed stocks excluding foreign stocks.
Source: Tokyo Stock Exchange
◉
Regular Members
End of FY 2003 2004 2005 2006 2007
Regular Members 266 267 289 308 317
Enrollment and Withdrawal -9 1 22 19 9
Source: Japan Securities Dealers Association
Statistical Data
◉
Number of Special Members by Category
End of FY 1994 2003 2004 2005 2006 2007
City Banks 11 7 7 6 6 6
Trust Banks 11 14 14 14 14 16
Government-affi liated Financial Institutions 2 2 2 2 2 2
Regional Banks 64 64 64 64 64 64
Second-tier Regional Banks 65 50 48 47 46 45
Shinkin Banks 42 35 34 36 36 37
Shinkin Central Bank 1 1 1 1 1 1
Life Insurance Companies 18 17 17 16 16 12
Non-Life Insurance Companies 21 14 13 13 13 10
Money Market Brokers 6 3 3 3 3 3
Foreign Banks 0 4 5 9 8 12
Securities Finance Companies 0 1 1 1 1 1
Credit Cooperatives 0 0 0 2 2 2
Other Banks 3 4 6 4 4 9
Public Corporation 0 0 0 1 1 0
Total 244 216 215 219 217 220
（Note: 1. Figures for 1994 are as of April 1, when special members enrolled in JSDA. 2. “Other Banks” included foreign trust banks and long-term credit banks. Source: Japan Securities Dealers Association
◉
Number of Securities Firms’ Employees
（thousands） End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007
Employees 92.0 94.7 96.6 89.2 85.0 86.4 87.9 92.6 99.1
Source: Japan Securities Dealers Association
◉
Securities Firms’ Domestic Offi ces
End of FY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Branches 1,768 1,753 1,731 1,680 1,565 1,511 1,529 1,514 1,534 1,561 Business Offi ces 238 258 285 273 257 263 281 324 372 418
Statistical Data
◉
Number of Securities Sales Representatives
(thousands) End of CY 1999 2000 2001 2002 2003 2004 2005 2006 2007 Regular Members 69.8 72.8 75.1 72.0 67.5 69.2 71.9 76.0 81.2 Special Members 292.8 345.6 367.4 363.4 362.9 356.3 345.3 357.5 349.2
Source: Japan Securities Dealers Association
◉
Number of Securities Sales Representatives of Financial Instruments Business Operators
End of CY 2005 2006 2007 Securities Sales Representatives of Financial Instruments Intermediary
Service Providers ailiated with Regular Members 1,144 1,870 2,134 Securities Sales Representatives of Financial Instruments Intermediary Service
Providers ailiated with Special Members 11 13 98,433
Note: Excluding Individual Financial Instruments Intermediary Service Providers. Source: Japan Securities Dealers Association
Performance of Securities Industry
◉
Operating Revenues of Member Securities Firms
（billion yen） FY ended 1999.3 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 Operating Revenue 2,579.1 3,795.6 3,213.2 2,505.7 2,386.8 3,294.2 3,388.7 4,911.5 4,686.4 4,582.9 Commission 1,585.3 2,791.2 2,018.5 1,669.0 1,469.2 2,046.2 2,221.8 3,195.5 2,956.7 2,830.3 Trading Gain 552.0 680.6 771.3 401.1 549.9 871.8 723.3 1,078.0 856.7 579.3 Financial Revenue 441.0 323.1 423.4 433.6 362.3 369.0 434.5 622.3 847.9 1,150.0
Note: Securities irms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
◉
Operating Expenses of Member Securities Firms
（billion yen） FY ended 1999.3 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 Selling and General
Administration Costs 1,967.1 2,209.5 2,265.0 2,266.7 2,040.3 2,221.0 2,319.9 2,793.9 3,043.2 3,123.7 Transaction Expenses 325.1 406.6 390.8 352.2 328.0 379.4 422.8 536.5 586.5 581.3 Employment Cost 911.8 1,110.0 1,135.8 1,116.2 972.8 1,096.7 1,105.9 1,345.6 1,431.0 1,390.0 Real Estate & Equipment Costs 292.2 284.5 294.0 302.4 278.5 266.4 262.2 265.7 299.9 325.2
Data Processing &
Statistical Data
◉
Current Proits/ Losses of Member Securities Firms
（billion yen） FY ended 1999.3 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 Current Proits/ Losses 144.8 1,254.0 589.3 -17.3 135.7 793.2 758.3 1,699.8 1,015.6 657.9
Note: Securities irms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
◉
Net Income/Loss and ROE of Member Securities Firms
（billion yen） FY ended 1999.3 2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 Net Income -572.6 392.0 287.2 -348.9 -169.8 508.3 483.4 1,136.3 588.2 -145.7 ROE -10.9% 6.8% 4.5% -6.0% -3.5% 10.1% 8.7% 17.7% 8.7% -2.0%
Notes: 1. Securities irms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax proits divided by average stockholders equity.
Source: Japan Securities Dealers Association
◉
Net Income/ Loss by Type of Member Securities Firms
（billion yen） FY ended 2004.3 2005.3 2006.3 2007.3 2008.3 Major Firms 231.7 214.8 463.8 332.8 -267.7 Foreign Firms 75.3 91.5 344.2 71.7 -8.5 Other Domestic Firms 201.1 177.0 328.2 183.6 130.4
Notes: 1. Securities irms that were not in business as of the end of March in each year are excluded.
2. Major securities irms: Daiwa Securities, Co., Ltd., Daiwa Securities SMBC Co., Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities irms capitalized at a hundred billion yen or more
Source: Japan Securities Dealers Association
◉
ROE by Type of Member Securities Firms
（％） FY ended 2004.3 2005.3 2006.3 2007.3 2008.3 Major Firms 11.0 9.3 18.2 10.9 -9.7 Foreign Firms 9.4 10.8 38.2 31.7 -25.6 Other Domestic Firms 9.4 7.4 11.0 5.2 3.2
Notes: 1. Firms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax proits divided by average stockholders equity.
3. Major securities irms: Daiwa Securities, Co., Ltd., Daiwa Securities SMBC Co., Ltd., Nikko Cordial Securities Inc., Nomura Securities Co., Ltd., and other securities irms capitalized at a hundred billion yen or more
