Full Year 2025 Daiwa Securities Group Inc Earnings Call Transcript
Key Points
- Net operating revenues for the fourth quarter of 2024 increased by 7.9% to JPY174.2 billion.
- The Wealth Management Division achieved a record high net increase in stock investment trust of JPY174.6 billion.
- Global Investment Banking posted record net operating revenue and ordinary income growth, driven by large primary deals and higher M&A revenues.
- The full-year dividend payout ratio reached a record high of 51.1%, with a total payout ratio of 83.6% including share repurchases.
- Ordinary income for the full year topped JPY200 billion for the first time since 2005, indicating solid results in line with the Medium-Term Management Plan.
- Ordinary income for the fourth quarter decreased by 19.1% to JPY51 billion.
- Profit attributable to owners of parent fell by 35.8% to JPY29.9 billion.
- The Asset Management Division recorded a decline in ordinary income.
- Overseas operations saw a 25.4% decrease in ordinary income, particularly affected by declines in the Americas.
- Global Markets experienced a 10.6% drop in net operating revenue, with FICC revenues declining due to high volatility in US interest rates.
My name is Kotaro Yoshida from Daiwa Securities Group Inc. Thank you very much for taking time out of your busy schedule today to attend our telephone conference.
I will now explain the financial results for the fourth quarter of 2024 announced today, in line with the financial results presentation materials available on our website.
Please turn to page 4. First, I will explain the summary of the consolidated financial results. The percentage change in the figures is compared to the third quarter of FY 2024. Net operating revenues for the fourth quarter of 2024 was JPY174.2 billion or plus 7.9%. Ordinary income was JPY51 billion or minus 19.1%.
The securities business secured a high level of profit, although profit declined partly due to less steel exits in Real Estate and Alternative Asset Management. In the Wealth Management Division, despite a softening stock market, the net increase in stock investment trust reached a record high of JPY174.6 billion, thanks to successful proposal
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