Daiwa Securities Group (8601) Q4 2025 earnings summary

Executive summary

• Ordinary income for FY2024 reached JPY 224.7 billion, up 28.7% year-over-year, surpassing JPY 200 billion for the first time in 19 years; net operating revenues rose 9.3% to JPY 645.9 billion.

• Profit attributable to owners increased 27.0% to JPY 154.4 billion; annualized ROE was 9.8% for the full year.

• Full-year dividend set at a record JPY 56 per share, with a payout ratio of 51.1% and a share repurchase program up to JPY 50 billion, bringing total payout ratio to 83.6%.

• Wealth Management, Asset Management, and Global Investment Banking divisions achieved record or substantial increases in revenues and profits.

• Comprehensive income declined 27.2% to JPY 159.5 billion due to negative other comprehensive income.

Financial highlights

• Q4 FY2024 net operating revenues were JPY 174.2 billion, up 7.9% sequentially; ordinary income was JPY 51.0 billion, down 19.1% from Q3 due to fewer deal exits.

• SG&A expenses for the year were JPY 479.2 billion, up 9.6% year-over-year; Q4 SG&A was JPY 121.3 billion, down 2.6% sequentially.

• Total assets increased to JPY 36,024.3 billion as of March 31, 2025; net assets per share reached JPY 1,158.82.

• Cash and cash equivalents at period end were JPY 3,739.7 billion, down from JPY 4,352.0 billion.

• Cash flows from operating activities were negative at JPY (454.1) billion, while financing activities provided JPY 199.0 billion.

Outlook and guidance

• Management targets JPY 240 billion ordinary income by FY2026 and JPY 350 billion or more by 2030, focusing on organic growth and maximizing customer asset value.

• No full-year earnings forecast for FY2025/FY2026 disclosed due to market uncertainty; minimum annual dividend set at JPY 44 per share through FY2027.

• Emphasis on expanding asset-based revenues and strengthening total asset consulting in Wealth Management.