Daiwa Securities Group Inc.

For Q1 FY2026, Daiwa Securities Group reported net operating revenue of JPY 220.3 billion, up 11.4%; ordinary income of JPY 88 billion, up 31.4%; and profit attributable to owners of the parent of JPY 56.4 billion, up 13.2%. ROE was 12.7%, and base income reached JPY 62.8 billion, up 83.8% year over year. Commission received totaled JPY 143.4 billion, up 9.3%, with brokerage commissions of JPY 34.9 billion, underwriting and secondary offering commissions of JPY 17 billion, distribution commissions of JPY 9.2 billion, and M&A-related commissions of JPY 12.5 billion. SG&A was JPY 142.8 billion, up 3.3%. By segment, Wealth Management posted net operating revenue of JPY 88.2 billion and ordinary income of JPY 37.2 billion; Securities Asset Management had net operating revenue of JPY 21.2 billion and ordinary income of JPY 15.7 billion; Global Markets had net operating revenue of JPY 53.8 billion and ordinary income of JPY 18.1 billion; and Global Investment Banking had net operating revenue of JPY 22.6 billion and ordinary income of JPY 3.2 billion. Management did not provide formal next-quarter or full-year numerical guidance in the call, but said the quarter was a good start to the final year of the medium-term plan and that wealth management was running roughly at the same pace as the first-quarter average, while Global Markets started below that high average. The company also reiterated that it is progressing toward the medium-term base income target of JPY 150 billion.

The lead executive emphasized that the quarter was not just a benefit of favorable markets, but also a reflection of structural shifts in inflation, asset-building demand, and capital-market participation. He highlighted total asset consulting as a broader solution model across investments, succession, real estate, and corporate transactions, and said the approach is driving both balance-based and flow-based revenue growth. His tone was constructive and confident, while also acknowledging that market uncertainty remains.

Yoshida said the quarter reached historically high revenue and income levels, with broad-based growth across divisions and overseas operations. He pointed to record asset-based revenue in Wealth Management, record ordinary income in Securities Asset Management, and strong gains in Global Markets and overseas income, while noting SG&A rose to JPY 142.8 billion mainly on higher trading-related expenses and personnel costs from wage increases and performance bonuses. On capital and allocation topics, he said ORIX Bank’s standalone five-year average net income is about JPY 20 billion, but he would not quantify goodwill amortization or upside potential, and added that no major one-off integration cost is expected; he also said an AT1 bond issuance is being considered but timing is undecided.

Analysts pressed on the sustainability of Global Markets equity revenue, the ORIX Bank acquisition’s capital impact and integration timeline, alternative asset exits, FICC trends, and the durability of Securities Asset Management profitability. Yoshida said April was solid, June was slightly better, and July started more slowly but order flow remained good; he also said ORIX Bank discussions are constrained by gun-jumping rules, there is no major update beyond May, and the company wants to merge as early as possible but timing is not set. On alternatives, he said first-quarter profits were helped by exits in real estate and private equity, with some further exit plans but nothing he could share; on FICC he said hedging demand and derivatives income have been supportive, with no big change after June; and he said no large one-off cost is expected from the ORIX Bank integration.