Daiwa Securities Group (8601) Q3 2025 earnings summary

Executive summary

• Net operating revenues for Q3 FY2024 were JPY 161.5 billion, up 0.3% sequentially, while cumulative net operating revenues for 1Q–3Q FY2024 reached JPY 471.7 billion, up 10.7% year-over-year.

• Ordinary income for 1Q–3Q FY2024 was JPY 173.7 billion, up 47.4% year-over-year; Q3 FY2024 ordinary income was JPY 63 billion, down 13.5% sequentially due to one-off gains in Q2.

• Profit attributable to owners of parent for 1Q–3Q FY2024 was JPY 124.4 billion, up 51.8% year-over-year; Q3 FY2024 profit was JPY 46.6 billion, down 13.3% sequentially.

• All business segments reported higher profits year-over-year, with significant contributions from Wealth Management, Asset Management, and Global Markets & Investment Banking.

• Comprehensive income for the nine months ended December 31, 2024 reached JPY 151.2 billion, up 8.0% from the prior year.

Financial highlights

• Commissions received totaled JPY 301.6 billion for 1Q–3Q FY2024, up 18.4% year-over-year; brokerage commissions were JPY 21.6 billion (+2.1% QoQ), bond underwriting commission up 9.1%, and M&A-related commissions JPY 16.1 billion (+36.4% QoQ).

• Net trading income rose 18.2% to JPY 84.2 billion, while net financial income declined 11.3% to JPY 57.0 billion due to higher repurchase agreement expenses.

• SG&A expenses for 1Q–3Q FY2024 were JPY 357.9 billion, up 12.0% year-over-year, mainly due to higher personnel and trading-related costs.

• Overseas operations ordinary income for Q3 FY2024 was JPY 8.0 billion, up 72.6% quarter-on-quarter, with strong M&A revenues in Europe and record highs in Asia/Oceania.

• Total assets as of December 31, 2024 were JPY 36.7 trillion, up 14.6% from March 31, 2024; shareholders' equity was JPY 1.63 trillion.

Outlook and guidance

• Positive momentum from Q3 is continuing into Q4, with ongoing strength in wealth management, global markets, and investment banking.

• Management is confident in exceeding medium-term plan targets, with base income and AUM trending ahead of expectations.

• Dividend policy targets a payout ratio of 50% or more, with a minimum annual dividend of JPY 44 per share set for FY2024–FY2027.

• No earnings forecast disclosed due to significant influence of market and economic conditions on performance.