Daiwa Securities Group (8601) investor relations material

Executive summary

• Net operating revenues for Q3 FY2025 reached JPY 194.6 billion, up 12.8% sequentially, marking a record high for the third quarter.

• Net income for 3Q FY2025 reached its highest level in 12 years, with profit attributable to owners of parent up 0.8% year-over-year to JPY 125.4 billion.

• Ordinary income rose 28.4% quarter-on-quarter to JPY 69.5 billion, driven by a recovery in Global Markets and record M&A revenues.

• Annualized ROE stood at 11%, reflecting balanced growth in both stable and flow revenues.

• Comprehensive income grew 31.8% year-over-year to JPY 199.2 billion.

Financial highlights

• Net operating revenues for 1Q-3Q FY2025 were JPY 522.5 billion, up 10.8% year-over-year; ordinary income was JPY 167.4 billion, down 3.6% year-over-year.

• Commission received totaled JPY 347.2 billion, up 15.1% year-over-year, driven by a 17.7% rise in brokerage commissions.

• Selling, general, and administrative expenses were JPY 374.7 billion, up 4.7% year-over-year.

• EPS for 3Q FY2025 was JPY 33.66; diluted net income per share at JPY 88.80.

• Shareholders' equity increased by JPY 66.9 billion from March 2025, reaching JPY 1.70 trillion.

Outlook and guidance

• Strong Q3 momentum in Wealth Management is continuing into Q4, with cumulative base income on track to exceed the medium-term management plan's final-year target of JPY 150.0 billion.

• No earnings forecast disclosed for the fiscal year ending March 31, 2026, due to market uncertainty.

• Dividend payout ratio remains at 50%, with JPY 44 as the minimum dividend level through FY2027.

• Share buybacks will be considered based on full-year performance and capital needs.