Daiwa Securities Group (8601) Q4 2026 earnings summary

Executive summary

• Net operating revenues for FY2025 were ¥720.4 billion, up 11.5% year-over-year, with Q4 FY2025 net operating revenues at ¥197.8 billion, up 1.7% sequentially.

• Ordinary income for FY2025 was ¥234.5 billion, up 4.4%, and profit attributable to owners of parent rose 13.5% to ¥175.3 billion.

• Base income exceeded the Mid-Term Management Plan target, reaching ¥182.7 billion, up 32.9% year-on-year.

• Annual dividend set at a record ¥64 per share, with a payout ratio of 50.8%.

• Comprehensive income surged 70.5% year-over-year to ¥271.9 billion.

Financial highlights

• Brokerage commissions increased to ¥31.9 billion due to higher customer flow.

• Selling, general, and administrative expenses were ¥138.3 billion, up 4.1%, mainly from higher performance-linked bonuses.

• Net income per share was ¥126.04, with diluted EPS at ¥124.15.

• Total assets increased to ¥38,077,646 million, and total net assets to ¥2,045,809 million.

• Dividend per share for the year was ¥64.00, with a payout ratio of 50.8%.

Outlook and guidance

• Management expects continued stable growth, leveraging a diversified business portfolio and improved market response capability.

• The acquisition of ORIX Bank is expected to enhance stable revenues, ROE, and EPS, with synergy effects projected to improve net interest income by ¥35 billion.

• No earnings forecast for FY2027 due to market environment uncertainty.

• Dividend policy maintains a minimum annual dividend of ¥44 per share through FY2027.

• Management exceeded the final-year base income target of ¥150.0 billion in the second year of the Mid-Term Management Plan.