Daiwa Securities Group (8601): FY2025 Results Summary — Record Net Income on Base Income Growth

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Daiwa Securities Group Inc. reported record-high profit attributable to owners of parent of ¥175,281 million for FY2025 (fiscal year ended March 31, 2026), up 13.5% year on year, while ordinary income rose 4.4% to ¥234,510 million. Base income — the sum of ordinary income from the Wealth Management (WM) Division, Securities Asset Management, and Real Estate Asset Management — increased 32.9% to ¥182,738 million, significantly exceeding the ¥150.0 billion final-year target set under the Mid-Term Management Plan. FY2025 ROE reached 10.3%, and the annual dividend rose to a record 64 yen per share.

Consolidated Results (Full-Year Actual)

Net operating revenues grew 11.5% year on year to ¥720,427 million, supported by steady accumulation of stable revenues linked to assets under custody and contributions from securities-related businesses. SG&A increased 7.1% to ¥513,094 million. On a quarterly basis, 4Q FY2025 ordinary income was ¥67,042 million (-3.6% QoQ) and profit attributable to owners of parent was ¥49,854 million (+7.3% QoQ), with annualized ROE of 11.5% for the quarter.

Item	FY2025	FY2024	Change
Operating revenues	¥1,467,983 million	¥1,372,014 million	+7.0%
Net operating revenues	¥720,427 million	¥645,990 million	+11.5%
SG&A	¥513,094 million	¥479,247 million	+7.1%
Ordinary income	¥234,510 million	¥224,716 million	+4.4%
Profit attributable to owners of parent	¥175,281 million	¥154,368 million	+13.5%

Item	FY2025 (Mar. 31, 2026)	FY2024 (Mar. 31, 2025)
Total assets	¥38,077,646 million	¥36,024,346 million
Net assets	¥2,045,809 million	¥1,923,287 million
Shareholders’ equity*	¥1,763,569 million	¥1,639,738 million
EPS	¥126.04	¥109.53
BPS	¥1,272.72	¥1,158.82
ROE (Annualized)	10.3%	9.8%

Segment Results

By division, the WM Division posted record-high ordinary income of ¥112,033 million (+38.9% YoY), with WM Division (Daiwa Securities) ordinary income of ¥91,383 million marking its highest level in 12 years, and Daiwa Next Bank ordinary income reaching a record ¥21,149 million. The AM Division’s ordinary income declined 15.5% to ¥65,432 million, as Alternative AM recorded provisions and impairment losses from the revaluation of certain renewable energy investments, even as Securities AM and Real Estate AM both achieved record-high ordinary income and assets under management. The GM&IB Division’s ordinary income rose 38.0% to ¥58,995 million, with GIB posting record-high ordinary income of ¥14,566 million on strong domestic M&A activity, while overseas operations posted ordinary income of ¥26,745 million for FY2025 (+28.6% YoY), led by growth in the Americas and Asia/Oceania.

Within the WM Division, asset-based revenues (domestic) reached a record ¥123.2 billion in FY2025, up from ¥111.7 billion in FY2024, and net asset inflows remained at a high level of ¥1.63 trillion for the year. Wrap-related revenues rose to a record ¥18.0 billion in 4Q, and Daiwa Securities’ contract assets under management for wrap accounts reached a record ¥6.04 trillion at fiscal year-end.

Segment	Metric	FY2025	FY2024
WM Division	Net operating revenues	¥295,788 million (+15.6%)	¥255,841 million
WM Division	Ordinary income	¥112,033 million (+38.9%)	¥80,664 million
AM Division	Net operating revenues	¥111,930 million (+9.2%)	¥102,517 million
AM Division	Ordinary income	¥65,432 million (-15.5%)	¥77,418 million
GM&IB Division	Net operating revenues	¥257,395 million (+9.9%)	¥234,196 million
GM&IB Division	Ordinary income	¥58,995 million (+38.0%)	¥42,738 million
Other/Adjustments	Ordinary income	-¥1,950 million	¥23,895 million
Consolidated total	Net operating revenues	¥720,427 million (+11.5%)	¥645,990 million
Consolidated total	Ordinary income	¥234,510 million (+4.4%)	¥224,716 million
Base Income**	Ordinary income	¥182,738 million (+32.9%)	¥137,535 million

Balance Sheet and Capital Adequacy

As of March 31, 2026, consolidated total assets stood at ¥38.08 trillion, net assets at ¥2.04 trillion, and shareholders’ equity at ¥1.76 trillion, up ¥123.8 billion from March 31, 2025. Approximately 80.0% of total assets were classified as highly liquid. As at December 31, 2025, the Consolidated Common Equity Tier 1 Capital Ratio was 19.13% and the Consolidated Leverage Ratio was 5.27%; the Consolidated Liquidity Coverage Ratio (daily average, January–March 2026) was 125.8%.

Item	Value	As of
Consolidated Total Capital Ratio	21.67%	Dec. 31, 2025
Consolidated Tier 1 Capital Ratio	21.61%	Dec. 31, 2025
Consolidated Common Equity Tier 1 Capital Ratio	19.13%	Dec. 31, 2025
Consolidated Leverage Ratio	5.27%	Dec. 31, 2025
Consolidated Liquidity Coverage Ratio	125.8%	Daily average, Jan.–Mar. 2026

Shareholder Returns

The annual dividend for FY2025 was a record 64 yen per share, comprising an interim dividend of 29 yen and a year-end dividend of 35 yen — the year-end dividend marking a record high on a half-year basis. The annual dividend payout ratio was 50.8%.

Medium-Term Management Plan / Topics

This material does not disclose specific FY2026 consolidated earnings or dividend forecasts; forward-looking figures for FY2026 cannot be confirmed from the materials. Under the Group’s Mid-Term Management Plan, a final-year (third-year) base income target of ¥150.0 billion had been set; base income of ¥182,738 million achieved in FY2025 — the second year of the plan — already significantly exceeded that target.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.