Management Policy
Under the vision of “becoming a corporate group that offers financial services free from conventional frameworks,” we aim to establish a comprehensive financial service centered on banking and receivables acquisition and collection businesses, so that our performance will not be swayed by economic cycles. Regarding our revenue model, we will thoroughly reassess the value and future potential of our existing business portfolio to improve our profitability structure.
Going forward, we will accelerate this approach by reassessing the value of each business without sacred cows and building new growth strategies to maximize shareholder value. Furthermore, we are committed to a management approach that prioritizes compliance and governance, aiming to develop into a corporate group that coexists and prospers with local communities by delivering high-value-added financial services to our customers.
Medium- to Long-Term Management Strategies and Challenges to be Addressed
Financial Business in Japan
We will continue to strive to secure earnings primarily from our credit guarantee, receivables collection, and securities businesses, as in the current consolidated fiscal year. In our credit guarantee business, we will focus on guarantees for condominium loans and overseas real estate–backed loans, as well as advance payment guarantee services.
Regarding the apartment loan, we will aim for further growth by strengthening our initiatives in new condominium loans and expanding our market share in used apartment loans. In addition, in our overseas real estate–backed loan business, we will optimize terms and conditions through product revisions and a review of our underwriting standards.
The main challenges and measures in our credit guarantee operations are outlined below.
| Items | Challenges | Measures |
|---|---|---|
| Credit Guarantee Business for condominium loans |
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| Credit Guarantee Business for overseas real estate–backed loans | Loss of new business opportunities | In response to shifts in the macro environment, such as rising interest rates, we are optimizing terms through product revisions and credit criteria updates. This allows us to address changes in customer behavior—including shifts toward self-funding or deferred purchases—while maximizing profit opportunities and accelerating the accumulation of a high-quality guaranteed balance. |
| Other | Advancement of business processes through the introduction of AI | Promote the use of AI in real estate valuation to accelerate and standardize appraisal processes, as well as to automate document preparation |
In the debt collection business, there is a possibility that recoveries may decline if factors such as rising prices due to yen depreciation and increases in borrowing interest rates negatively affect the financial condition of debtors. With regard to the purchase price of receivables, recent bidding and award trends indicate that, although there has been a slight downward trend in some cases, there have been no significant overall fluctuations. The primary companies from which our group purchases receivables are largely those holding internet-based card and shopping receivables, where sales continue to grow even under such conditions. Leveraging our strong recovery capabilities, we will aim to achieve stable and continuous acquisition of receivables and further expand our business going forward.
Going forward, we will continue to closely monitor debtor conditions and forecast end-of-period performance on a monthly basis. Should there be any indication of underperformance, we will promptly implement corrective measures.
In the securities business, while the investor base in Japan is expanding following the introduction of the new NISA program, price competition—particularly among online brokerage firms—continues, making the competitive environment for traditional transaction-based businesses increasingly severe. Furthermore, demand—particularly among affluent customers—for advisory services that emphasize asset preservation and growth is increasing, and expectations are rising for diversified investment strategies combining foreign currency–denominated products, bonds, and alternatives, as well as for the optimization of overall asset portfolios. Accordingly, it is necessary to respond appropriately to these evolving customer preferences.
In addition, following the revision of the listing maintenance criteria for the TSE Growth Market, companies are reassessing their capital policies and listing strategies. At the same time, increasing uncertainty in the external environment—including changes in interest rate conditions and overseas developments such as tariff policies—has made market volatility and shifts in customer behavior more likely, constituting significant external factors in the execution of our plans. Under these circumstances, in order to achieve our plan, we will position “differentiation that does not rely on scale” and “diversification of revenue sources” as core strategies and promote the following key initiatives.
| Items | Challenges | Measures |
|---|---|---|
| General Management |
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| Underwriting and Investment Banking Business | Achieving revenue growth through investment banking functions |
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| Wealth Management | Full-scale launch of wealth management services | Full-scale expansion of asset management services for affluent clients, deepening the customer base and accelerating the accumulation of assets under custody |
| Other | Strengthening the provision framework for products and services, among others |
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Financial Business in South Korea
We expect an increase in interest income on loans driven by the growth in loan balances in our banking business, as in the current consolidated fiscal year. In the Korean economy, as the base interest rate was lowered to 2.5% in May 2025, we also expect an improvement in performance due to a decline in funding costs.
Furthermore, across South Korea, there has been a rising trend in delinquent loans, individual rehabilitation, and credit recovery since the COVID-19 pandemic. In addition, the regulatory environment remains challenging, as amendments to the Supervisory Regulations for Savings Banks are set to introduce phased implementation of additional loan loss provisions for multiple-debt borrowers, aimed at strengthening the soundness of savings banks.
The main challenges and measures in Financial Business in South Korea are outlined below.
| Items | Challenges | Measures |
|---|---|---|
| Measures to Secure Earnings |
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In the receivables collection business, restrictions on asset sales have remained in place since the COVID-19 pandemic, presenting ongoing challenges. However, we aim to expand our operations by leveraging the strong collection capabilities and legal compliance we have developed over time.
Financial Business in Southeast Asia
We expect an increase in interest income from loans driven by the growth in loan balances in our banking business, as in the current consolidated fiscal year. Financial Business in Southeast Asia recorded operating profits for four consecutive fiscal years since the year ended December 2022; however, it is expected to post an operating loss in the current consolidated fiscal year. At J Trust Bank Indonesia, in order to secure earnings, the key challenges are to actively increase loan balances, primarily in the corporate and commercial segments, reduce credit costs through a lower NPL (non-performing loan) ratio, decrease the cost of funds (COF), and increase the CASA ratio. As part of our marketing activities, we will promote the acquisition of new deposit accounts through various deposit programs, thereby driving further revenue growth.
In addition, we have entered into business alliance agreements with four regional banks in Japan to introduce their clients—those already operating in or planning to expand into Indonesia—to J Trust Bank Indonesia. In Indonesia, where the relocation of the new capital is planned and the country is expected to enter a demographic dividend period for more than 40 years, we believe that through the mutual utilization of each party’s management resources, we can enhance the corporate value of businesses expanding overseas while also contributing to Indonesia’s economic development.
The key challenges and corresponding measures at J Trust Bank Indonesia are as follows.
| Items | Challenges | Measures |
|---|---|---|
| Increase in loan receivables | Strengthening of revenue base | Daily meetings with the business department are held to strengthen lending activities. By enhancing collaboration between the business and credit screening departments, the organizational framework is being reviewed to minimize non-performing loan risks while maximizing interest revenue. Efforts are being made to proactively increase the balance of loans and corporate bonds. |
| Strengthening of capital base | Following regulatory revisions, the Indonesian Financial Services Authority (OJK) has requested the achievement of a capital adequacy ratio of 11.0% (the regulatory standard level). | As of the end of December 2025, the capital adequacy ratio was 14.22%, thereby satisfying the current requirement. Respond flexibly to regulatory and other amendments |
| Marketing activities and securing liquidity |
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Actively promote the acquisition of new deposit accounts ・Implementation of deposit programs
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In our debt collection business, we will strengthen the acquisition of new claims, while also working to secure earnings by enhancing recovery efforts, including intensified initiatives to uncover and collect on difficult-to-recover claims. In Indonesia, the real estate market has been expanding in recent years amid rising property prices and demand driven by rapid population growth and urbanization, making it one of the most robust sectors. Accordingly, supported by the strong real estate market, the NPL sales market has also been revitalized, and JTII’s debt collection business has been performing steadily.
The key challenges and corresponding measures for maximizing recovery amounts are as follows.
| Items | Challenges | Measures |
|---|---|---|
| New Purchase of receivables | Strengthening the New Purchase of Receivables |
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| Collections | Strengthening legal collection and related measures |
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J Trust Royal Bank will continue to focus on affluent customers as its primary client base. By leveraging strong relationship management (RM) between customer representatives and customers, the bank aims to differentiate itself from competitors through tailored lending and investment proposals. In addition, it will place emphasis on product development that meets customer needs and enhancing digital capabilities.
The main challenges and corresponding measures at J Trust Royal Bank are as follows.
| Items | Challenges | Measures |
|---|---|---|
| Securing Earnings | Active management of non-performing loans (NPLs) |
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| Risk Management | Strengthening risk management and funding efficiency |
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| Investment | Optimization of investments |
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Real Estate Business
Amid the impact of interest rate trends and changes in real estate market conditions on acquisition prices and the sales environment, we will thoroughly enforce property selection that accurately captures area-specific supply-demand trends and customer needs.
Furthermore, leveraging our strengths as a comprehensive real estate company, we will promote a brand strategy that spans across our condominium sales, income-generating real estate, and crowdfunding businesses.
By strengthening information dissemination centered on property quality and our track record, we will work to enhance recognition and credibility among both end users and investors.
In addition, J Grand has obtained a license for the Real Estate Specified Joint Enterprise during the current consolidated fiscal year and has commenced the development of its crowdfunding business, thereby aiming to further expand its investor base.
Furthermore, in order to expand the scale of our business, we will appoint dedicated sales personnel and implement a proposal-based sales approach that includes asset management for affluent clients, thereby increasing the number of such clients and building long-term relationships of trust.
Investment Business
We will continue to strive to secure profits from our investment business, as in the current consolidated fiscal year, while also making efforts to recover the funds invested in Group Lease PCL.
As for the claims against Group Lease PCL and its management, full allowances have already been made; therefore, any recoveries will be recognized as income as they are received.
Our group recognizes the enhancement of shareholder returns and the sustainable improvement of corporate value through better capital efficiency as key management priorities. Accordingly, we will implement the acquisition and cancellation of treasury shares while taking into account our business performance, capital policy, share price, and overall market conditions. During the current consolidated fiscal year, we have conducted the acquisition and cancellation of treasury shares not only to further enhance returns to our shareholders and improve capital efficiency, thereby realizing appropriate shareholder value, but also with the aim of meeting the selection criteria for long-term inclusion in the TOPIX index．In addition, the annual dividend for the fiscal year ending December 2026 is expected to be JPY 17 per share, an increase of JPY 1 per share (no interim dividend and a year-end dividend of JPY 17). We will continue striving to enhance corporate value and meet the expectations of our shareholders.