Q1 2026 Daiwa Securities Group Earnings Call
Speaker #1: 2026, between us today, based on the presentation materials posted on our website. Please turn to page 4. First, I will provide a summary of our consolidated financial results.
Speaker #1: The presented changes in figures are compared to the fourth quarter of fiscal year 2025. In the first quarter of fiscal year 2026, we achieved profit growth across all divisions with ROE reaching 12.7%, net upper revenue was 220.3 billion yen, up 11.4%, ordinary income was 88 billion yen, up 31.4%, and profit attributable to owners of the parent was 56.4 billion yen, up 13.2%.
Speaker #1: The wealth management division, in addition to this client activity, saw its portfolio-based proposals gain traction, resulting in record-high asset-based revenue of 35.8 billion yen.
Speaker #1: The trend of net assets inflows and asset inflows continues. Furthermore, not only asset-based revenue but also flow-based revenue expanded. In the asset management division, against the backdrop of continued net inflows and favorable market conditions, ordinary income at securities asset management reached the record high of 15.7 billion yen.
Speaker #1: In global markets, client flows expanded against the backdrop of a strong market environment and equity revenues increased significantly. Global investment banking saw an increase in earnings driven by contributions from several large-scale deals.
Speaker #1: Please turn to page 8. Face income, the KPI for stable earnings stepped forth in the midterm management plan, reached 62.8 billion yen, an increase of 83.8% compared to the same period last year.
Speaker #1: We are progressing at a pace that significantly exceeds by final-year target of 150 billion yen set in the medium-term management plan, and we are making steady progress in building an earnings base that is less susceptible to external conditions.
Speaker #1: Please turn to page 11. I will now explain the income statement. Commission received total 143.4 billion yen, an increase of 9.3%. Breakdown of commission received can be found on page 24.
Speaker #1: Brokerage commission was 34.9 billion yen, up 9.4%. Underwriting and secondary offering commissions were 17 billion yen, up 86.4%. Distribution commission were 9.2 billion yen, up 20%.
Speaker #1: 利益は227億円と大幅増益、活発化する顧客フローや各種コーポレートアクションに適切に対応し、 過去10年の四半期平均を大きく上回りました。 なお、 本日オリックス銀行の前株式取得を完了しました。 当第2四半期から連結業績への取り組みを開始いたします。 5ページをご覧ください。グループ連結決算の概要です。決算資料用説明資料上は、前四半期との比較でコメントが記載されておりますが、この場では原則、前年同期比でご説明いたします。純営業収益は2,203億円、プラス42%。販売費、一般管理費は1,428億円、プラス20%。経常利益は880億円、プラス101%。純利益は564億円、プラス80%となりました。当期末の総資産は39兆円、純資産は2兆円、自己資本は1.7兆円。1株当たり純利益は40円、68銭。1株当たり純資産額は1,294円、66銭となりました。ROEは年換算で12.7%です。 8ページをご覧ください。ベース利益は628億円となりました。中計目標の1,500億円を上回るペースで進捗し、外部環境に左右されにくい収益基盤の構築が着実に進展しております。 14ページまでお進みください。海外ビジネスの経常利益は合計で131億円、プラス244%。こちらは過去最高となりました。地域別では欧州がマイナス4億円、アジア・オセアニアは46億円、エクイティ収益などが貢献し、過去最高となりました。米州は88億円、エクイティまたFICC収益が拡大し、大幅に増収となりました。 続きまして、セグメント別の業績です。15ページをご覧ください。ウェルスマネジメント部門です。純営業収益は882億円、プラス40%。経常利益は372億円、プラス88%となりました。好調な株式市場を背景に、エクイティ収益が増加しました。また、投信代理事務手数料、ラップ関連収益も増加し、残高ベース収益は358億円と過去最高を更新。固定費カバー率は125%、総経費カバー率は77%にそれぞれ上昇しました。資産導入額は4,915億円と高水準を維持しております。 16ページをご覧ください。ダイワ証券のウェルスマネジメント本部における商品募集、販売額の状況です。ラップ口座サービスの契約額、純増額はともに堅調に推移し、契約資産残高は6兆7,650億円と過去最高を更新いたしました。株式投資においても、フィジカルAI株式ファンドや世界厳選株式オープンを含む幅広い銘柄で、販売が積み上がりました。 17ページをご覧ください。ダイワネクスト銀行の状況です。経常利益は72億円、プラス66%となりました。ダイワ証券との連携を通じた預金獲得が進展し、預金残高は5.3兆円まで伸長。政策金利の引き上げもあり、利ざやが拡大し、増収増益となりました。 18ページをご覧ください。アセットマネジメントです。証券アセットマネジメントの純営業収益は212億円、プラス40%。経常利益は前年同期比2倍の157億円と過去最高となりました。ダイワアセットマネジメントは、公募株式投信で4,224億円の資金純増を確保。公募投資信託運用資産高は43兆円と過去最高となりました。また、官報生命との提携以降、投資顧問契約資産が着実に拡大し、収益基盤を強化しております。 19ページをご覧ください。不動産アセットマネジメントの純営業収益は133億円、プラス37%。経常利益は98億円、プラス41%となりました。不動産アセットマネジメント2社の運用資産残高は過去最高を更新。2030年度のAUM目標1.8兆円を前倒しで達成いたしました。ダイワ証券リアルティにおける物件売却益や運用するリートからの収益が貢献し、増収増益となりました。 20ページをご覧ください。オルタナティブアセットマネジメントの経常利益は48億円となりました。一部投資先のエグジットなどによりキャピタルゲインを計上しております。 21ページをご覧ください。グローバルマーケッツ&インベストメントバンキング部門です。まず、グローバルマーケッツですが、純営業収益は538億円、経常利益は181億円と増収増益となりました。エクイティでは好調な株式市場を背景に、不労収益が拡大し増収。FICCは顧客フローが増加したことに加え、ポジション運営が控訴し増収となりました。 22ページをご覧ください。グローバルインベストメントバンキングです。純営業収益は226億円、経常利益は32億円と増収増益となりました。エクイティ、レッドの引き受け、ともに複数の案件で主幹事を務めたことなどにより、増収。M&A収益は多数の案件を遂行し、増収となりました。以上が2026年度第1四半期決算の概要でございます。少しコメントさせていただきます。この四半期でございますけれども、収益、また利益ともにヒストリカルに見ても高水準となりました。今回の結果でございますけれども、単に市場環境に恵まれたことによるものだとは捉えてはおりません。金融、資本市場の構造的な変化、例えばインフレの定着や貯蓄から投資への動き、またコーポレートガバナンス改革など、こういった変化を当社が継続して取り組んできた戦略、また各種政策を通じまして、着実に成果へと結びつけることができたからだと考えております。ウェルスマネジメントで進めております総資産コンサルティングというのは、単なる運用商品の販売手法のことではございませんで、お客様がお持ちの総資産を起点に、お悩みや課題を可視化し、運用、証券、不動産、法人取引、こういったところまでソリューションの幅を広げることだと考えております。こういった取り組みを続けることで、結果として残高ベース収益、また不労収益の拡大につながりました。アセットマネジメント部門では、積み上がりました運用資産残高が収益性の向上につながっておりまして、まさにストック型ビジネスの強みが一段と発揮されているというふうに考えております。また、グローバルマーケッツ&インベストメントバンキング部門におきましても、資本市場改革の進展やお客様のニーズの変化といった構造的な変化を的確に捉えて、収益機会を着実に取り込んでおります。中期経営計画の最終年度となる今年度ですけれども、こういった成果をさらに加速させる1年と位置づけております。この第1四半期ですけれども、その実現に向けて良好なスタートを切ることができたというふうに思っています。足元のマーケット環境でございますけれども、引き続き不透明感の残る展開となっておりますが、こういった環境下でございましても、ダイワ証券のウェルスマネジメント本部では、おおむねこの第1四半期平均並みのペースで推移をしております。グローバルマーケッツにつきましては、高水準でございましたこの第1四半期を下回るスタートとなっておりますけれども、堅調な顧客フローを確認しています。本日、オリックス銀行の完全子会社化が完了いたしました。ウェルスマネジメントを中心とした当社の成長戦略をさらに前進させる重要な一歩になるものと考えております。これからもお客様の多様なニーズに適切にお応えし、金融資本市場の発展に貢献するとともに、持続的な企業価値向上を目指してまいります。引き続き皆様のご支援を賜りますよう、よろしくお願い申し上げます。私からの説明は以上です。
Speaker #1: And M&A-related commissions were 12.5 billion yen, down 27.9%. Please turn to page 12. SG&A totaled 142.8 billion yen, up 3.3%. Trading-related expenses increased due to higher commission payments.
Speaker #1: Personnel expenses rose due to wage increases and primarily in Japan, an increase in performance-based bonuses. Please turn to page 14. Total ordinary income from overseas operations reached 13.1 billion yen, up 90%, setting a new record high.
Speaker #1: By region, in Europe, the M&A business was sluggish due to geopolitical risks. In Asia and Oceania, ordinary increased driven by equity revenue, reaching a record high level.
Speaker #1: In the Americas, ordinary income rose significantly due to an expansion in equity revenues. Next, I will explain the results by segment. Please turn to page 15.
Speaker #1: First, the wealth management division. Net operating revenue was 88.2 billion yen, up 8.8%. Ordinary income was 37.2 billion yen, up 12.4%. In addition to favorable market conditions, the widespread adoption of total asset consulting allowed us to capture a broad range of clients' asset management needs and translate them into results.
Speaker #1: Looking at results by product, trading volume in equities expanded. Driven particularly by foreign stocks, revenue increased by 900 million yen. In the fixed income segment as well, by capturing investment needs in the mid-rising interest rates, revenue increased by 800 million yen.
Speaker #1: Furthermore, a gap account services continued to grow as a solution for inflation hedging and medium-to-long-term asset management needs, resulting in an 1.1 billion yen increase in rep-related revenue, which reached a new all-time high.
Speaker #1: The fixed cost coverage ratio, based on asset-based revenue, rose to 155.7%, while the total expense coverage ratio improved to 77.3%. Detailed data is provided on page 28, so please refer to it later.
Speaker #1: Please turn to page 16. This page shows the status of product offerings and sales amounts for the domestic wealth management division. The rep account service performed similarly, with contract value reaching 357.7 billion yen and a net increase of 237.6 billion yen, bringing the total contracted AUM to a record high of 6 trillion 765 billion yen.
Speaker #1: Next, please turn to page 17.
Speaker #2: This is the status of Daiwa Next Bank. Next interest income was 13 billion yen, up 16.2%, and ordinary income was 7.2 billion, up 15.8%.
Speaker #2: Deposit acquisition progressed through collaboration with Daiwa Securities and the deposit balance expanded to 5.3 trillion yen. Daiwa Next Bank continues to steadily fulfill its gateway function for the shift from savings to investment.
Speaker #2: In addition, the increase in the policy rate, widened the interest margin, resulting in higher revenues and income. Please turn to page 18, the asset management division.
Speaker #2: First, securities asset management. Net operating revenues were 21.2 billion yen, up 7.8%, and ordinary income was 15.7 billion yen, up 37.6%. AUM, or publicly offered investment trust, managed by Daiwa Asset Management, surpassed 43 trillion yen, a record high.
Speaker #2: Assets under investment advisory contracts, including those related to the alliance with Japan Post Insurance, continue to expand steadily, further strengthening the revenue base. Please turn to page 19 for real estate asset management.
Speaker #2: Net operating revenues were 13.3 billion yen, up 47.2%, and ordinary income was 9.8 billion yen, up 0.2%. AUM and real estate asset management surpassed 1.8 trillion yen, achieving the FY 2030 target ahead of schedule.
Speaker #2: Gains on property sales at Daiwa Securities Realty and income from managed REITs contributed to the increase in both revenues and income. Please turn to page 20 for alternative asset management.
Speaker #2: Net operating revenues were 6.3 billion yen, and ordinary income was 4.8 billion yen. Capital gains were recorded due to the exit from certain portfolio investments, among other factors.
Speaker #2: On page 21, finally, I will explain the global markets and investment banking division. In global markets, net operating revenues were 53.8 billion yen, up 4.9%, and ordinary income was 18.1 billion yen, up 2.3%.
Speaker #2: In equities, client order flows from both institutional industries and wealth management clients remained solid in both Japanese and foreign equities. Despite elevated market volatility, we captured order flows effectively and combined with successful positioning of the position management secured a high level of revenues.
Speaker #2: In FICC, order flows in both domestic and foreign bonds declined from the previous quarter's high level, but remained solid overall. And turning to page 22, global investment banking recorded net operating revenues of 22.6 billion yen, down 6.1%, and ordinary income of 3.2 billion yen, up 52.5%.
Speaker #2: This concludes my explanation of the financial results for the Q1 of FY 2026. Just to add some comments. This first quarter's revenue and the income, both reached historically high levels.
Speaker #2: That said, we do not view these results as simply the product of a favorable market environment. Against the backdrop of rising inflation and the growing asset building needs, we continue to see a strong structure shift of funds into the financial and capital markets, including some needs to meet the response to the corporate governance.
Speaker #2: So that we believe our ability to steadily translate this shift to tangible outcomes, reflecting the group's steadfast effort and disciplined execution of this strategy.
Speaker #2: The total asset consulting and the wealth management division is not only a method of selling investment products, but rather to identify the customers' pain points and the needs, and broadening the range of solutions across investment real estate, and corporate transactions.
Speaker #2: Continuing this effort has, as a result, led to growth in both balance-based revenues and flow revenues. In the asset management division, the accumulated AUM has contributed to higher profitability, further demonstrating the strength of our stock-type business model.
Speaker #2: In global markets and investment banking, as well, we have accurately captured the structural changes, such as progressing capital market reforms and shifting client needs, and have steadily captured revenue opportunities.
Speaker #2: The fiscal year the final year of our mid-term management plan is positioned as a year to further drive these achievements. This first quarter marks a good start towards that goal.
Speaker #2: Regarding the current market environment, uncertainty continues to linger. Even so, the wealth management is tracking at roughly the same pace as the first quarter average.
Speaker #2: In the meantime, global markets is off to a start, below the high first quarter average. Though we continue to see solid client flows. In addition, today we completed the process of making order expand our 100 subsidiary.
Speaker #2: We believe this represents an important step forward in advancing our growth strategy centered on wealth management. Going forward, we will continue to respond to our clients' diverse needs, contribute to the development of the financial and the capital markets, and pursue sustainable growth in corporate value.
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