Financial Highlights (Consolidated)
During the third quarter of fiscal year 2018, Credit Saison completed the shift to a new system supporting online processing 24 hours a day, 365 days a year, creating infrastructure that shall enable us to promptly and at a low cost develop new services, paving our way for the growth of the enterprise in the future.
In the Credit Services Business, the Company implemented a number of measures in pursuit of a safe, secure, and convenient cashless society; in cooperation with Liquid, Inc., a company offering personal authentication through biometric technologies, we started examining possibilities for a new fully online method of authentication using biometrics, implemented measures to promote use of various cardless settlement services including payments by QR code, and promoted a shift to cashless payments in many kinds of settlement areas of the corporate market, posting an increase in the shopping transactions volume as well as the shopping revolving credit balance. Furthermore, in the Finance Business, the Company strove to accumulate good quality assets through financing services offering creative lifestyles including Flat 35 Loans, a service that meets the funding needs of people purchasing a house, and these efforts resulted in a satisfactory increase of both the transaction volume and the balance.
On consolidated basis, in the third quarter of fiscal year 2018, with Credit Services Business and Finance Business driving the overall performance, Credit Saison posted the operating revenue of \227.5 billion (up 3.2% YoY), but the operating expenses increased due to several reasons including an increase in depreciation expenses for the new system, resulting in operating income of \32.9 billion (down 11.3% YoY). Due to the absence of gain on sales of investment securities sold by affiliates accounted for by the equity method, as well as of gain on sales of investment securities sold by the Company and other extraordinary income posted in the corresponding period of last year, ordinary income was \43 billion (down 15.7% YoY) and net income was \28.1 billion (down 18.7% YoY).
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Financial Highlights (Non-consolidated)
The Company implemented measures to increase the number of members for the Saison American Express® Card, for which we expect particularly active use and high unit prices, and also conducted campaigns to increase the number of members in cooperation with partner retailers. We also conducted measures to stimulate card use, bolster the appeal of revolving payment schemes, and promote the use of cards to pay utility fees, insurance premiums, etc. As a result of these efforts, shopping transactions volume expanded 2.1% YoY to \3,603.5 billion, and shopping revolving credit balance grew 2.1% from the previous fiscal year-end to reach \422.9 billion.
In credit guarantee business, the Company offered guarantee products for multi-purpose loans on deeds, which can be used for operating funds. By this means the Company strove to build detailed partnerships with regional financial institutions, such as regional banks and credit unions. The number of partner institutions, to 394 (±0 YoY), while the guarantee balance decreased 3.1% from the previous fiscal year-end, to \275.1 billion.
In Flat 35 Loans, the Company promoted support for homebuyers housing-loan packages such as the Saison Home Assistance Loan, a loan for various expenses incurred when purchasing a house. Loan issuance expanded 16.2% YoY to \156.3 billion, while the balance of loans transferred to JHFA grew 20.2% from the previous fiscal year-end to \713.2 billion. Moreover, with our Saison Life Support services, which was launched in September, 2018 and was well received by the customers, we are striving to offer a service to enhance comfortable living.
For the Saison Asset Formation Loan (a loan product supporting the purchase of condominiums for investment purposes), the Company strengthened coordination with leading partners. As a result, loan issuance expanded 52.5% YoY to \129.7 billion. Total loan portfolio increased 33.1% against the previous fiscal year-end to \454.5 billion.
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