Daiwa Securities Group (8601) Q4 2024 earnings summary

Executive summary

• FY2023 operating revenue rose 47.5% YoY to ¥1,277,482 million; ordinary income more than doubled to ¥174,587 million and parent-attributable profit rose 90.3% to ¥121,557 million.

• Results benefited from rising markets, stronger customer flows, large equity underwriting deals, record Global Investment Banking M&A revenue, and profits from energy and infrastructure investment exits.

Financial highlights

• FY2023 net operating revenue increased 27.3% to ¥590,910 million; operating income increased to ¥153,705 million from ¥66,273 million, while SG&A rose 9.9% to ¥437,205 million.

• Parent-attributable net income was ¥121,557 million; basic EPS was ¥84.94 versus ¥43.53, and diluted EPS was ¥83.86 versus ¥43.31.

• In Q4 FY2023, operating revenue was ¥372,016 million, net operating revenue ¥164,583 million, operating income ¥47,083 million, ordinary income ¥56,778 million, and parent-attributable profit ¥39,594 million.

• FY2023 comprehensive income rose to ¥219,108 million from ¥103,094 million, including ¥53,719 million of foreign currency translation adjustment.

Outlook and guidance

• FY2024 consolidated earnings forecasts and expected dividends were not issued because securities-related results are difficult to forecast and depend significantly on economic and market conditions.