Daiwa Securities Group (8601) Q2 2026 earnings summary

Executive summary

• Net operating revenues for 1H FY2025 rose 5.7% year-over-year to ¥327.8 billion, with Q2 FY2025 up 11.2% sequentially to ¥172.6 billion; ordinary income for Q2 was ¥54.1 billion, up 24% quarter-over-quarter.

• Profit attributable to owners of parent reached ¥78.96 billion for 1H FY2025, a 12-year high, with Q2 profit at ¥47.7 billion, up 52.8% sequentially.

• Interim dividend set at a record ¥29 per share, payout ratio 51.4%, with full-year minimum guidance of ¥44 per share through FY2027.

• Wealth Management, Asset Management, and Global Investment Banking divisions posted strong revenue and income growth, with record asset under custody and wrap account AUM.

• Comprehensive income for 1H FY2025 surged 58.3% year-over-year to ¥105.87 billion.

Financial highlights

• Commission received totaled ¥218.7 billion for 1H FY2025, up from ¥191.8 billion year-over-year; brokerage commission ¥26.9 billion (+27.5% QoQ), underwriting commission ¥10.8 billion (+21.7% QoQ), M&A fees ¥13.8 billion (+23.5% QoQ).

• SG&A expenses were ¥122.7 billion in Q2, up 3.1% quarter-over-quarter.

• Base profit reached ¥78.1 billion, up 23.7% year-over-year, outpacing the midterm plan's final year target.

• Total assets as of September 30, 2025, were ¥36.91 trillion; net assets ¥1.94 trillion; shareholders' equity ¥1.66 trillion.

• Diluted net income per share for 1H FY2025 was ¥55.68; BPS at period end was ¥1,201.74.

Outlook and guidance

• Base profit annualized is on track to exceed the ¥150 billion midterm plan target a year ahead if current trends continue.

• Management expects continued strong client flows and active transactions in wealth management and market divisions into Q3.

• M&A pipeline remains robust, with domestic M&A up 30% year-over-year and Americas up 15%.

• IPO pipeline is slightly down, but market conditions and TSE policy changes may provide tailwinds.

• No earnings forecasts disclosed for FY2026 due to market uncertainties.