Investing.com转述大和证券FY2026一季度业绩强劲但标题与正文错配

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Introduction & Market Context
Daiwa Securities Group Inc. presented its first quarter fiscal year 2026 results on August 3, 2026, showcasing broad-based growth across all business divisions and significant progress toward its medium-term strategic targets. The Japanese financial services firm reported ordinary income of ¥88.0 billion, more than doubling year-over-year performance, while its stock traded near 52-week highs at $1,812, reflecting investor confidence in the company’s transformation toward more stable, recurring revenue streams.
The presentation emphasized that despite ongoing market uncertainty, Daiwa achieved revenue and profit growth in every segment, with base income—a key measure of stable earnings from wealth management and asset management operations—reaching ¥62.8 billion, well ahead of the pace needed to meet its ¥150 billion mid-term plan target.
Quarterly Performance Highlights
As shown in the following consolidated earnings results comparison, Daiwa delivered substantial year-over-year improvements across all key metrics for the first quarter of fiscal 2026.
Net operating revenues reached ¥220.3 billion, representing a 42.0% increase from the prior year period and an 11.4% sequential gain. Ordinary income of ¥88.0 billion reflected a remarkable 101.5% year-over-year surge, while profit attributable to owners of the parent climbed 80.6% to ¥56.4 billion. The company’s return on equity expanded to 12.7%, up from 7.7% in the same quarter last year and 11.5% in the previous quarter.
The quarterly trend analysis illustrates the consistent improvement in financial performance over the past two years, with particular acceleration in the most recent quarter.
Sequential quarterly growth remained strong, with net operating revenues advancing 11.4% from the fourth quarter of fiscal 2025, ordinary income rising 31.4%, and profit attributable to owners increasing 13.2%. The presentation attributed this momentum to increased client activity, portfolio-based wealth management proposals driving asset-based revenue to record levels, and continued net asset inflows across the platform.
Building a Resilient Earnings Base
A central theme of the presentation was Daiwa’s progress in constructing a more stable earnings foundation through its wealth management and asset management businesses. The company’s base income metric, which aggregates ordinary income from these more predictable revenue streams, reached ¥62.8 billion in the first quarter.
The following charts demonstrate both the annual and quarterly progression of consolidated ordinary income and base income, highlighting the structural shift in the company’s earnings composition.
On an annualized basis, base income has grown from ¥87.8 billion in fiscal 2021 to ¥182.7 billion in fiscal 2025, with the first quarter of fiscal 2026 showing continued acceleration. This trajectory puts Daiwa well ahead of its medium-term management plan target of ¥150 billion for the final year of the plan, demonstrating what management characterized as "steady progress in building a resilient earnings base."
The quarterly trend reveals consistent upward momentum in base income, which now represents a substantial portion of total ordinary income, reducing the company’s dependence on more volatile trading and investment banking activities.
Wealth Management Division Performance
The Wealth Management Division emerged as a major contributor to quarterly results, posting ordinary income of ¥37.2 billion, an 88.9% increase year-over-year. This performance was driven by asset-based revenue reaching a record high of ¥35.8 billion, reflecting the success of Daiwa’s total asset consulting approach.
The division’s revenue composition and trend analysis shows the growing importance of stable, fee-based income streams.
Asset-based revenues, which include investment trust agency fees, wrap account fees, and advisory services, demonstrated particular strength. The presentation highlighted that wrap-related revenue rose to ¥19.1 billion, a record high, driven by client demand for inflation protection and long-term wealth accumulation strategies. Equity investment trust distribution commissions increased 19.6%, while investment trust agency fees rose 7.8%.
The division maintained strong net asset inflows from both individual and corporate clients, with total inflows continuing across investment trusts, fund wrap services, and deposits at Daiwa Next Bank. The asset-based revenue model achieved a fixed cost coverage ratio of 125.7% and a total expense coverage ratio of 77.3%, underscoring the profitability and sustainability of this business approach.
Daiwa Next Bank, the division’s banking subsidiary, contributed significantly to wealth management growth, as illustrated in the following deposit and account trends.
The bank’s deposit balance reached ¥5.3 trillion in the first quarter of fiscal 2026, up from ¥5.1 trillion at the end of fiscal 2025, with the number of accounts growing to 2.38 million. Net interest income increased 35.0% year-over-year to ¥13.1 billion, benefiting from higher policy rates that expanded net interest margins. The presentation positioned Daiwa Next Bank as a strategic gateway from savings to investment, facilitating client relationships across the broader wealth management platform.
Asset Management Division Achievements
The Asset Management Division delivered record ordinary income of ¥30.3 billion, more than doubling the prior year result with a 105.5% increase. Within this division, Securities Asset Management achieved a record high ordinary income of ¥15.7 billion, supported by expanding assets under management.
The growth trajectory of Daiwa Asset Management’s AUM demonstrates the division’s market success and client appeal.
Total assets under management for Daiwa Asset Management reached ¥50.5 trillion in the first quarter of fiscal 2026, up from ¥43.5 trillion at the end of fiscal 2025. Public investment trust AUM surpassed ¥43 trillion, driven by a net inflow of ¥422.4 billion in publicly offered equity investment trusts (excluding ETFs). The presentation noted that investment advisory assets also expanded following a strategic alliance with Japan Post Insurance, further strengthening the earnings base.
Real Estate Asset Management contributed ¥9.8 billion in ordinary income, with assets under management reaching ¥1.8 trillion—a milestone that exceeded the division’s fiscal 2030 target ahead of schedule.
The early achievement of the fiscal 2030 AUM target reflects steady asset growth across Daiwa’s real estate investment corporations and private investment vehicles. The presentation indicated that gains on property sales at Daiwa Securities Realty and profits from managed REITs supported both revenue and earnings growth in this segment.
Alternative Asset Management showed significant improvement, with ordinary income of ¥4.8 billion compared to a loss in the prior year, driven by capital gains from exits of certain investments in the principal investment portfolio.
Global Markets & Investment Banking
The Global Markets & Investment Banking Division reported ordinary income of ¥22.7 billion, a substantial 354.0% increase year-over-year, reflecting strong client flows and elevated corporate action activity.
Within Global Markets, the following breakdown illustrates the composition of net operating revenues and the significant improvement in profitability.
Global Markets generated net operating revenues of ¥53.9 billion and ordinary income of ¥18.2 billion, with equity revenues of ¥28.7 billion and FICC revenues of ¥24.0 billion. The presentation attributed the strong equity performance to robust flows from institutional investors and wealth management clients in both Japanese and foreign equities, combined with elevated market volatility and successful position management. FICC operations benefited from solid client flows in domestic and foreign bonds and high derivatives activity supported by favorable market conditions.
Global Investment Banking contributed net operating revenues of ¥22.7 billion and ordinary income of ¥3.3 billion, with earnings increasing significantly from multiple large-scale deals. The presentation provided detailed examples of major transactions, including equity offerings for JX Advanced Metals Corporation (¥250 billion Euro Yen CB), Japan Airlines (¥200 billion bond-type class shares), and several other substantial mandates across equity, debt, and M&A categories.
Overseas Operations Reach Record High
International operations achieved a record-high ordinary income of ¥13.1 billion in the first quarter, nearly tripling the prior year result.
The regional breakdown shows that the Americas delivered ¥8.9 billion in ordinary income, more than doubling sequentially, driven by higher equity revenues. Asia and Oceania contributed ¥4.7 billion, also reaching a record high supported by strong equity market performance. Europe remained challenged at a loss of ¥409 million due to weak M&A performance amid geopolitical risks, though this represented a modest deterioration from the previous quarter.
The presentation emphasized that overseas businesses are becoming an increasingly important contributor to group earnings, with the first quarter representing the strongest international performance in the company’s recent history.
Financial Strength & Capital Position
Daiwa maintained robust regulatory capital and liquidity positions throughout the quarter, as demonstrated in the following Basel III metrics.
The consolidated total capital ratio stood at 20.06%, with a common equity tier 1 capital ratio of 17.73% and a leverage ratio of 5.10%, all well above regulatory requirements. The consolidated liquidity coverage ratio of 133.6% reflected ample high-quality liquid assets relative to potential cash outflows.
Total assets of ¥39.9 trillion included ¥32.0 trillion in highly liquid assets (cash, short-term securities, trading products, and securities-backed loans), representing 80.2% of the balance sheet. Shareholders’ equity increased to ¥1.8 trillion, supporting the company’s growth initiatives and strategic investments.
Client Asset Growth & Engagement
The presentation highlighted continued success in attracting and retaining client assets, a key driver of the asset-based revenue model. Total assets under custody reached ¥116.3 trillion in the first quarter.
The composition of assets under custody shows equity holdings of ¥80.2 trillion, equity investment trusts of ¥12.8 trillion, and Japanese bonds of ¥14.7 trillion, among other categories. The steady growth in assets under custody, particularly in equity investment trusts which expanded from ¥9.5 trillion a year earlier, reflects both market appreciation and net client inflows.
The breakdown of asset-based revenues and the underlying asset balances further illustrates the strength and sustainability of this business model.
Asset-based revenues in the domestic Wealth Management Division reached ¥35.8 billion, representing 47.2% of total net operating revenues in that segment. The fixed cost coverage ratio of 125.7% demonstrates that asset-based revenues alone more than cover the division’s fixed expenses, while the total cost coverage ratio of 77.3% shows substantial progress toward full cost coverage from stable revenue streams alone.
The underlying asset balances driving these revenues include equity investment trust assets under custody of ¥12.8 trillion, wrap account contract AUM of ¥6.7 trillion, and foreign currency deposits of ¥0.7 trillion, all showing growth trajectories that support future revenue expansion.
Strategic Initiatives & Outlook
The presentation announced the completion of Daiwa’s full acquisition of ORIX Bank as a subsidiary on August 3, 2026, with earnings consolidation beginning in the second quarter. Management characterized this as an important step in expanding the company’s wealth management capabilities and client reach.
Looking ahead, the presentation indicated that wealth management operations are expected to continue at roughly the first quarter pace, supported by ongoing client engagement and asset accumulation. Global Markets may run below the strong first quarter average, though client flows remain solid. Asset management should continue to benefit from accumulated assets and market conditions, while Real Estate Asset Management is expected to build on its earlier-than-expected progress toward long-term targets.
The company emphasized that it is progressing at a pace that significantly exceeds the final year target of ¥150 billion in base income set in the medium-term management plan, positioning Daiwa to build "an earnings base that is less susceptible to external conditions."
Management acknowledged that market uncertainty persists, with potential impacts on trading activity and client behavior. However, the structural shift toward asset-based revenues, combined with the diversification across wealth management, asset management, and global markets, provides multiple growth drivers and enhanced resilience against market volatility.
The presentation concluded by reinforcing Daiwa’s strategic vision of identifying customer needs across investment management, asset succession, real estate, and corporate transactions—positioning the firm as more than a product distributor but rather as a comprehensive financial solutions provider for clients navigating an evolving economic environment characterized by inflation, rising interest rates, and shifting investment preferences.
Full presentation:
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