Okasan Securities Group

Basic Information

Stock Code: 8609
Industry: Securities, Commodity Futures Trading
Category Detail: Securities
Prefecture: Tokyo
Establishment Year: August 1944
Listing Year: June 1973
Official Website: https://www.okasan.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Daiwa Securities Group, Nomura Holdings, Marusan, Toyo Securities, Tokai Tokyo, Mito, Traders Holdings, Kyokuto Securities, Iwai Cosmo Holdings, Aizawa Securities Group

Overview

Okasan Securities Group is a financial holding company established in 1944, an independent quasi-major securities group strong in retail and proprietary trading.

Current Situation

Okasan Securities Group recorded consolidated net sales of approximately 65 billion yen, operating income of about 2 billion yen, and net income of about 4 billion yen in the fiscal year ended March 2020, maintaining solid performance. The core securities business operates nationwide, demonstrating competitiveness primarily in the retail and proprietary trading divisions. Beginning with Okasan Securities and Okasan Asset Management within the group, it offers diverse financial services both domestically and internationally. In recent years, it has focused on strengthening online securities and expanding asset management operations, while promoting synergy creation through business integrations and joint ventures. Management has adopted an audit and supervisory committee structure to enhance governance. In the medium term, it has positioned responses to market environment changes and DX initiatives as key strategic pillars, aiming to bolster growth and strengthen its revenue base. It also places importance on relationships with local communities, advancing collaborations leveraging its bases including Mie Prefecture. It is a distinctive securities group that addresses diverse customer needs while pursuing sustainable growth.

Trivia

Interesting Facts

Unique company name derived from the founder's three brothers 'Okasan'
Origins in Tsu City, Mie Prefecture, with a long history of regional closeness
Promotes dual deployment of online and traditional branch securities
Focuses on governance as an audit and supervisory committee company
One of the few domestic independent securities firms to expand into Asia
Adopts holding company structure with multiple securities subsidiaries
Growth strategy utilizing joint ventures and management integrations
Business expansion through capital and business alliance with Securities Japan
Balances online and offline customer experience
Group includes regional securities firms like Sankyo Securities and Sanen Securities
Presence of Okasan Investment Advisory and Economic Research Institute since 1983
Quasi-major presence on the Tokyo Stock Exchange Prime Market
Emphasizes liquidity provision to financial markets through strengthened proprietary trading
Long-established Japanese securities industry player with nearly 100 years of history from founding
Establishes robust systems to protect customer assets even in disasters

Hidden Connections

Founders were three brothers, and 'Okasan' is a coined term combining their names
Historical ties to the former Japan Development Bank system
Deep relationships with local financial institutions due to headquarters in Tsu City, Mie Prefecture
Alliance with SBI Group in asset management, strengthening ties with online business
Integration of online and branch securities to achieve fusion of digital and face-to-face
Complex relationships with regional financial sector due to numerous affiliates
Enhanced presence in the Tokai region through business alliance with Securities Japan
Broad customer coverage possible through multiple financial subsidiaries

Future Outlook

Growth Drivers

Customer base expansion due to growing asset management needs
Improved convenience of online securities trading through DX initiatives
Increased trading volume from buoyant domestic and international financial markets
Product and service development responding to diversifying customer needs
Strengthened regional financial network through local revitalization support
Rising demand for ESG-related products amid expansion of ESG investing
Enhanced market fluctuation response in proprietary trading division
Business efficiency through group synergies
Advanced risk management and compliance
Expanded customer touchpoints through hybrid online and face-to-face model

Strategic Goals

Expand influence in major domestic regional markets
Enter top 5 share in online securities trading
Increase asset management sales to over 30 billion yen
Expand ESG and sustainability-related products
Revolutionize customer experience using DX
Strengthen sustainable governance structure
Business expansion into emerging and overseas markets
Nationwide rollout of investment education programs
Diversify revenue base through group collaboration
Enhance brand value through expanded social contribution activities

Business Segments

Institutional Investor Services

Overview

Supports asset management for institutional investors leveraging high expertise and track record

Competitiveness

Agility unique to independent firms

Customers

Pension funds
Investment advisory firms
Insurance companies
Banks

Products

Investment trust entrustment
Asset management consulting
Fund management

Proprietary Trading and Market Making

Overview

Provides market liquidity and conducts stable market making

Competitiveness

Market expertise cultivated over many years

Customers

Tokyo Stock Exchange
Osaka Exchange
Customer trading markets

Products

Stock proprietary trading
Bond trading
Derivatives trading

Corporate Client Services

Overview

Supports corporate capital policies and fundraising with diverse services

Competitiveness

Regionally attuned proposal capabilities

Customers

Small and medium enterprises
Large corporations
Financial institutions

Products

Stock and bond underwriting
M&A advisory
Fundraising support

Competitive Advantage

Strengths

Regionally rooted independent securities group
Strengths in both retail and proprietary trading
Diverse financial services deployment
Governance enhancement through audit and supervisory committee
Solid financial base and stable earnings

Competitive Advantages

Strong local base centered on Mie Prefecture
High market presence in proprietary trading division
Group synergies created through holding company structure
Well-developed online trading platform
Flexible customer response unique to independents
Multifaceted service provision through diverse subsidiaries

Threats

Intensifying competition with major securities firms
Revenue instability due to market fluctuations
Operational constraints from strengthened financial regulations
Customer loss from delays in digitalization response
Decline in investment appetite due to macroeconomic stagnation

Innovations

2022: Management Integration of Okasan Securities and Okasan Online Securities

Overview: Integration aimed at strengthening securities services within the group.
Impact: Contributes to improved management efficiency and customer convenience.

2022: Okasan Asset Management Joint Venture Formation

Overview: Joint venture with SBI Group to expand asset management business.
Impact: Successfully expanded product lineup and customer base.

2023: Digital Platform Enhancement

Overview: Development of new system to promote online customer trading and improve usability.
Impact: Increased number of users and significant growth in transaction volume.

2024: AI-Powered Investment Advisory Service Development

Overview: Realizes precise advice tailored to individual users using machine learning technology.
Impact: Contributes to higher customer satisfaction and acquisition of new customers.

Sustainability

Ongoing promotion of social contribution activities supporting regional finance
Reduction of environmental impact through business efficiency and paperless operations
Enhanced compliance to improve customer trust
Workplace environment improvement through diversity and inclusion initiatives
Implementation of financial education support programs