Q2 2025 Daiwa Securities Group Inc Earnings Call Transcript
Key Points
- Net operating revenues increased by 8% to JPY161 billion, indicating strong financial performance.
- Ordinary income saw a significant rise of 93.1%, reaching JPY72.8 billion.
- The wealth management segment showed steady progress with asset-based revenues growing.
- Record high ordinary income in the asset management segment, driven by growth in active funds and real estate AUM.
- Profit attributable to owners of the parent increased by 124.2%, with an annualized ROE of 13.9%.
- Brokerage commissions dropped by 8.5% due to a decrease in stock trading volume.
- Flow revenues in the wealth management division declined due to market uncertainty.
- FICC revenues decreased, particularly in the domestic market due to a sharp decline in interest rates.
- Trading-related expenses increased, impacting overall SG&A costs.
- Ordinary income in the wealth management division decreased by 22.1%.
I am Yoshida of Daiwa Securities Group Inc. Thank you again for taking time out of your busy schedules today to attend our conference call. Let me now turn to the financial results for the second quarter of fiscal 2024, which we announced today. I will explain in accordance with the presentation material posted on the company's website.
Let me start from page 4. I will first provide a summary of the consolidated financial results. Percentage figures are compared with the Q1 of FY24. Net operating revenues were JPY161 billion, up 8%. Ordinary income was JPY72.8 billion, up 93.1%. In the wealth management segment, asset-based revenues grew, and the steady progress was made in the wealth management business model.
Wrap account services continued to maintain high levels of contract amounts, as well as net asset inflow from the previous quarter. In the asset management segment, ordinary income reached a record high. In securities asset management, fund continued to generate net growth centered on active funds.
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