Daiwa Securities Group Inc. (DSEEY) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Kotari Yoshida from Diva Securities Group, Inc. Thank you very much for taking the time to participate in our conference call today. I will now explain the financial results for the fourth quarter of FY 2025 announced today following the presentation materials available on our website. First, please turn to page four. I will begin with a summary of our consolidated financial results. Percentage changes are in comparison to the third quarter of FY2025. In Q4 FY2025, despite the continued highly volatile market environment, our profit base, primarily driven by asset-based revenues, functioned steadily, allowing us to maintain a high level of consolidated profit. Net operating revenues were 197.8 billion yen, up 1.7%. Ordinary income was 67 billion yen, down 3.6%. And profit attributable to owners of parent was 49.8 billion yen, up 7.3%. Looking at the results by division in the Wealth Management Division, As a result of our focus on total asset consulting, both the contract amount and net inflow for RAP account services reached record highs, and net asset inflows also expanded. In securities asset management and real estate asset management, assets under management grew steadily, continuing to expand our revenue base. Global markets accurately captured customer flows amid market fluctuations. resulting in increased revenues in both equity and FICC. In global investment banking, domestic M&A remained strong. As a result of these factors, the annualized ROE was 11.5%. The year-end dividend is 35 yen per share. Combined with the interim dividend of 29 yen, the annual dividend will reach a record high of 64 yen, resulting in a dividend payout ratio of 50.8%. Please turn to page 8. This page shows base profit, our KPI for stable earnings, as outlined in the medium-t...