Daiwa Securities Group Inc.
8601・Prime Market・Securities & Commodity Futures
Business
Daiwa Securities Group Inc. is a holding company for a comprehensive financial group comprising 138 consolidated subsidiaries and 39 equity-method affiliates. Its three core pillars are: Wealth Management for individuals and corporations through its flagship subsidiary Daiwa Securities; investment trust, real estate, and alternative asset management through Daiwa Asset Management and others; and sales & trading and M&A advisory services for institutional investors. In addition to its domestic operations in Japan, the group maintains offices in major financial markets across Europe, Asia, and the Americas, offering a wide range of services that address clients' both fundraising and investment needs. It also possesses banking functions through Daiwa Next Bank, with Total Asset Consulting that integrates securities, banking, and asset management as a key strength.
Business Model
Revenue is composed of three layers: (1) flow revenue such as brokerage commissions and underwriting fees, (2) balance-based revenue linked to investment trust and wrap account balances (balance-based revenue of ¥123.2 billion in FY2026 (ending March 2026), up 10.3% year on year), and (3) interest margin income generated from Daiwa Next Bank's deposit balance (¥5.0 trillion at the end of FY2026 (ending March 2026)). While flow revenue is affected by market conditions, the expansion of balance-based revenue and interest margin income has improved the stability of overall revenue.
Company Strengths
In FY2026 (ending March 2026), the contract amount for Wrap Account Service and the net increase in equity investment trusts both reached record highs. Asset introduction amount remained at a high level of ¥1,634,200 million, and balance-based revenue expanded 10.3% year on year to ¥123,200 million. This confirms the establishment of a stable revenue base less susceptible to market conditions.
Daiwa Asset Management's assets under management reached ¥44.2 trillion (a record-high level), up ¥10.9 trillion from the end of the previous fiscal year, driven by net fund inflows and rising market valuations. This exceeded the medium-term management plan's target of ¥44 trillion in AUM for the Asset Management Division. Establishment of brands such as the iFree series and product marketing leveraging the new NISA program drove fund inflows.
Total Asset Consulting is being deployed through collaboration among Daiwa Securities, Daiwa Next Bank, and Daiwa Asset Management. Daiwa Next Bank's deposit balance increased 17.5% from the end of the previous fiscal year to ¥5.0 trillion, and the number of bank accounts expanded 20.8% year on year to 2.28 million accounts. With external partnerships including Japan Post Bank and Aozora Bank added, the customer base continues to be expanded.
ENVALITH's Perspective
Performance Trend
Net operating revenue continued its expansionary trend, rising from ¥619,471 million in FY2022 to ¥866,090 million in FY2023, ¥1,277,482 million in FY2024, ¥1,372,014 million in FY2025, and ¥1,467,983 million in FY2026 (ending March 2026). Operating profit recovered sharply after bottoming out at ¥66,273 million in FY2023, surpassing ¥200,000 million for the first time at ¥207,333 million in FY2026 (ending March 2026). As an external factor, strength in the domestic equity market boosted equity-related revenue and the valuation of investment trust balances. Meanwhile, selling, general and administrative expenses increased to ¥513,094 million (up 7.1% year on year), driven mainly by increases in personnel expenses of ¥256,197 million and transaction-related expenses of ¥100,165 million. Comprehensive income rose sharply to ¥271,898 million (up 70.5% year on year), supported by improvement in valuation differences on available-for-sale securities and foreign currency translation adjustments.
Growth Strategy
Building a stable earnings foundation through deepening Wealth Management, enhancing Asset Management sophistication, strengthening Investment Banking, and expanding banking functions
Through expansion of Wrap Account Service balances and deepening of Total Asset Consulting, the company continues to build up balance-based stable revenue. In FY2026 (ending March 2026), net operating revenue of ¥295,788 million and ordinary income of ¥112,033 million (+38.9% year on year) were achieved, representing steady progress toward the mid-term plan targets.
Through Daiwa Next Bank's acquisition of all shares of ORIX Bank (acquisition consideration of approximately ¥370.0 billion), the company will acquire real estate-related lending and trust functions. It aims to build a virtuous cycle model of deposit growth and lending growth, and to maximize synergies through future functional integration via a merger of the two banks.
Against a backdrop of net inflows into publicly offered investment trusts and rising equity markets, Securities Asset Management achieved increased revenue and profit. Real Estate Asset Management recorded increased revenue and profit driven by property acquisition fees and gains on sales. Alternative Asset Management recorded an ordinary loss due to the revaluation of some investees, but the division as a whole achieved net operating revenue of ¥111,930 million, up 9.2% year on year.
The company executed numerous M&A deals both domestically and internationally, and in FY2026 (ending March 2026) the Global Markets & Investment Banking Division achieved ordinary income of ¥58,995 million, up 38.0% year on year. This was driven by expansion of equity flow revenue and increased revenue from M&A advisory.
Through comprehensive business alliances with Japan Post Bank, The Shikoku Bank, The Iwate Bank, and others, and the establishment of an investment advisory business foundation through a capital and business alliance with Japan Post Insurance, the company will promote expansion of its customer base and diversification of stable revenue through collaboration with external partners outside the group.
Last updated: July 19, 2026