Daiwa Securities Group Inc.

In fiscal 2026 Q1, 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%. Commission received totaled JPY 143.4 billion, up 9.3%, while 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; Asset Management posted net operating revenue of JPY 21.2 billion and ordinary income of JPY 15.7 billion; Global Markets posted net operating revenue of JPY 53.8 billion and ordinary income of JPY 18.1 billion; and Global Investment Banking posted net operating revenue of JPY 22.6 billion and ordinary income of JPY 3.2 billion. Overseas operations ordinary income reached JPY 13.1 billion, up 90%. Management did not give formal next-quarter or full-year numerical guidance, but said wealth management is tracking at roughly the same pace as the first quarter average, while Global Markets has started below the high first-quarter average though client flows remain solid.

Yoshida’s message was that the quarter was not just helped by favorable markets, but reflected structural demand shifts into financial assets, rising inflation, and corporate governance-related needs. He emphasized Daiwa’s total asset consulting approach, saying it is broadening solutions across investment management, inheritance/succession, real estate, and corporate transactions. His tone was upbeat but measured: the first quarter was described as a good start to the final year of the plan, while noting that market uncertainty remains.

Yoshida highlighted that base income, the company’s stable earnings KPI, was JPY 62.8 billion, up 83.8%, showing progress toward the medium-term target of JPY 150 billion. He broke out commission income of JPY 143.4 billion, with brokerage commission at JPY 34.9 billion, underwriting and secondary offering commissions at JPY 17 billion, distribution commissions at JPY 9.2 billion, and M&A-related commissions at JPY 12.5 billion; SG&A was JPY 142.8 billion, up 3.3% due to higher trading-related expenses and personnel costs. He also said overseas operations ordinary income reached a record JPY 13.1 billion, and that the group is building a business model less susceptible to external conditions.

Analysts focused on the sustainability of Global Markets equity revenue, the economics and timing of the ORIX Bank acquisition, alternative-asset exit timing, and the sustainability of Securities Asset Management profitability. Yoshida said April through June equity revenue was steady overall, with June better than April and May, while July started slower but client order flow remained solid; he also said ORIX Bank integration discussions are constrained by gun-jumping rules and there is no major update beyond May. On ORIX Bank, he said standalone five-year average net income is about JPY 20 billion, but declined to quantify upside or integration effects, and said no major one-off cost is expected. On wraps and wealth management, he said around 99% of fund wrap customers had unrealized gains at June-end and the average holding period is about 12 years, supporting stable long-term behavior.