Daiwa Securities Reports Record Profit, Driven by Wealth Management

Daiwa Securities Group reported record profits for the first half of fiscal year 2026, driven by exceptional performance in its wealth management and asset management divisions. The firm’s net profit attributable to shareholders reached ¥175.3 billion, a significant increase from the previous year.

The strong results were underpinned by a 60.2% increase in base profit – encompassing wealth management, securities, and real estate asset management – which totaled ¥125.2 billion, already exceeding 80% of the firm’s full-year target of ¥150 billion. Wealth management specifically contributed ¥770 billion in operating profit, a 56.2% year-over-year increase, reaching a record high for the first half of the fiscal year. This growth was attributed to continued inflows of funds, particularly into wrap accounts and equity investment trusts, resulting in record-high residual base revenue.

The acquisition of Orix Bank in the second quarter also contributed to the positive performance, with the consolidated results including three months of the bank’s operations. The asset management division also saw strong growth, with assets under management reaching a record high, although capital gains in alternative asset management declined. The Global Markets & Investment Banking segment experienced a 93.8% increase in operating profit, benefiting from robust domestic M&A activity and debt underwriting, despite a decrease in revenue from overseas fixed income, currency, and commodities (FICC) trading.

Daiwa Securities’ total assets amounted to ¥40.407 trillion, with 75.4% comprised of highly liquid assets. The firm’s self-capital ratio increased to ¥1.841 trillion, a rise of ¥774 billion compared to the previous year-end. An interim dividend of ¥39 per share was announced, representing a 50.3% payout ratio, and marking a new record.

Daiwa Securities’ strong performance reflects an ability to capitalize on favorable market conditions and demonstrates the effectiveness of its strategic focus on wealth management and asset management, despite some headwinds in other segments. The firm’s return on equity (ROE) reached 12.0% for the first half, indicating improved profitability and efficient capital utilization.