Daiwa Securities Group (8601) Q2 2025 earnings summary

Executive summary

• Net operating revenues for 1H FY2024 reached ¥310.2 billion, up 11.4% year-over-year, with ordinary income at ¥110.6 billion, the highest since FY2000.

• Profit attributable to owners of parent rose 45.4% year-over-year to ¥77.8 billion for 1H FY2024.

• 2Q FY2024 ordinary income surged 93.1% quarter-over-quarter to ¥72.9 billion, the highest since 4Q FY2005.

• Interim dividend set at a record ¥28 per share, with a minimum full-year dividend policy of ¥44 per share from FY2024 to FY2026.

• Comprehensive income declined 50.1% year-over-year to ¥66.9 billion, mainly due to negative other comprehensive income items.

Financial highlights

• 2Q FY2024 net operating revenues: ¥161.1 billion (+8.0% QoQ, +11.6% YoY); ordinary income: ¥72.9 billion (+93.1% QoQ, +78.5% YoY); profit attributable to owners: ¥53.8 billion (+124.2% QoQ, +80.5% YoY).

• Net trading income increased to ¥56.2 billion from ¥44.7 billion year-over-year.

• Total assets increased to ¥33.7 trillion as of September 30, 2024, from ¥32.0 trillion at March 31, 2024.

• Total net assets rose to ¥1.82 trillion, with an equity ratio of 4.6%.

• Annualized ROE for 2Q FY2024: 13.9%.

Outlook and guidance

• Management targets a stable business structure less affected by external factors, focusing on expanding base income and asset-based revenues.

• No earnings forecast disclosed for the fiscal year ending March 31, 2025, due to market environment uncertainties.

• Dividend policy targets a payout ratio of 50% or more, with a minimum annual dividend of ¥44 per share through FY2027.