Daiwa Securities Group (8601) Q3 2025 earnings summary

Executive summary

• Net operating revenues for 1Q–3Q FY2024 were ¥471.7 billion, up 10.7% year-over-year, with Q3 FY2024 at ¥161.5 billion, up 0.3% sequentially; ordinary income for 1Q–3Q FY2024 was ¥173.7 billion, up 47.4% year-over-year, and Q3 FY2024 was ¥63 billion, down 13.5% due to one-off gains in Q2.

• Profit attributable to owners for 1Q–3Q FY2024 was ¥124.4 billion, up 51.8% year-over-year; Q3 FY2024 was ¥46.6 billion, down 13.3% sequentially; annualized ROE was 11.7% for Q3 and 10.5% for 1Q–3Q.

• All major divisions—Wealth Management, Asset Management, Global Markets, and Investment Banking—reported strong or record results, with significant contributions from M&A, ECM, and alternative asset management.

• Comprehensive income for 1Q–3Q FY2024 reached ¥151.2 billion, up 8.0% year-over-year.

Financial highlights

• Commissions received for 1Q–3Q FY2024 were ¥301.6 billion, up 18.4% year-over-year; brokerage commissions ¥21.6 billion (+2.1% QoQ), underwriting and secondary offering commissions ¥13.2 billion (+21% QoQ), M&A-related commissions ¥16.1 billion (+36.4% QoQ).

• Net trading income rose 18.2% to ¥84.2 billion; net financial income declined 11.3% to ¥57.0 billion.

• SG&A expenses for 1Q–3Q FY2024 were ¥357.9 billion, up 12.0% year-over-year, mainly due to higher performance-linked bonuses and transaction-related expenses.

• Overseas operations ordinary income for Q3 FY2024 was ¥8.0 billion, up 72.6% quarter-on-quarter, with record highs in Asia/Oceania and strong FICC performance in the Americas.

• Total assets as of December 31, 2024 were ¥36.7 trillion; shareholders' equity was ¥1.63 trillion.

Outlook and guidance

• Positive momentum from Q3 is continuing into Q4, with ongoing strength in customer asset consulting, capital recycling, and investment banking pipelines.

• Management expects to maintain or exceed medium-term plan targets, with base income and AUM trending ahead of expectations.

• No earnings forecast disclosed due to significant market and economic influences; minimum annual dividend of ¥44 per share set for FY2024–FY2027.