Daiwa Securities Group (8601) Q2 2027 earnings summary

Executive summary

• 1H FY2026 ordinary income reached a record ¥166.4bn, up 69.9% YoY; profit attributable to owners rose 36.6% to ¥107.8bn, on net operating revenue of ¥444.3bn, up 35.5%.

• 2Q net operating revenues were ¥223.9bn, up 1.6% QoQ; ordinary income was ¥78.3bn, down 11.2%, and profit attributable to owners was ¥51.4bn, down 8.8%.

• 1H base income rose 60.2% YoY to ¥125.2bn, exceeding 80% of the ¥150bn Mid-Term Plan target.

Financial highlights

• 1H operating revenues were ¥865.454bn, up 23.3% YoY; operating income rose 72.5% to ¥148.427bn.

• 1H commissions rose to ¥281.158bn from ¥218.698bn; financial revenue was ¥381.901bn and net trading income ¥62.123bn.

• 2Q commissions received were ¥137.7bn, down 4.0% QoQ; brokerage commissions fell 24.4%, underwriting commissions 31.2%, and M&A commissions rose 20.5%.

• 1H SG&A increased 22.3% YoY to ¥295.9bn; 2Q expenses rose 7.1% QoQ, partly reflecting ORIX Bank consolidation and higher personnel, office, trading and depreciation costs.

• 1H extraordinary income was ¥4.2bn, down 81.4% YoY; income before taxes rose 41.6% to ¥170.5bn.

Outlook and guidance

• Consolidated FY2026 operating forecasts were not disclosed because securities-related performance is significantly influenced by economic and market conditions.

• Wealth Management continued to perform well from October; Global Markets activity slowed versus 2Q, while Global Investment Banking continued building its deal pipeline.

• Strategy prioritizes Wealth Management growth, deeper client relationships, Asset Management AUM expansion and opportunities as primary and secondary markets become more active.