Presentation for 2Q FY2025 [PDF:1,388KB]

2Q FY2025 Earnings Announcement

Daiwa Securities Group Inc.

November 4, 2025

The purpose of this material is to provide information on our business performance through the second quarter of FY2025 and our management vision for the future, and is not intended as a solicitation to invest in securities issued by the Company. This document was prepared based on information available to the public as of November 4, 2025. The opinions and forecasts contained in this material are based on information available as of November 4, 2025.

The opinions, forecasts, and other statements contained in this material are based on our judgment at the time the material was prepared, and we do not guarantee or promise the accuracy or completeness of such information, The Company does not guarantee or promise the accuracy or completeness of the information, and may change its forecasts in the future without notice.

Financial Results for the Second Quarter of FY2025

• Highlights 3-4

• Financial Summary 5-8

• B/S and Financial Management Summary 9-10

• P/L Summary 11

• Breakdown of SG&A 12-13

• Overseas Operations 14

• Segment Information 15-22

• Reference 24-34

Definitions of the terms used in this document
WM	Wealth Management
AM	Asset Management
GM&IB	Global Markets & Investment Banking
GM	Global Markets
GIB	Global Investment Banking
Base income	The sum of ordinary income of Wealth Management Division, Securities Asset Management, and Real Estate Asset Management
Asset-based revenues	Agency fee for investment trust, Investment advisory and account managed fees, Bank agency fees and other, revenues from asset-based fee plan for investment trusts, etc.
FICC	Fixed Income, Currency and Commodities

2

Highlights (1H/FY2025, YoY)

Although consolidated ordinary income declined due to the absence of the gain on negative goodwill recorded in the previous fiscal year, combined results of the three main divisions recorded revenue and income growth. Profit attributable to owners of parent reached its highest level in 12 years.

Consolidated earnings results	FY2025 1H	FY2024 1H	% Changes vs 1H/FY2024
Net operating revenues	¥327.8 bn	¥310.2 bn	+5.7%
Ordinary income	¥97.9 bn	¥110.6 bn	-11.5%
Profit attributable to owners of parent	¥78.9 bn	¥77.7 bn	+1.5%

• Base income*1, a key indicator of stable earnings, rose 23.7% to ¥78.1 bn.

• Annualized ROE for the 1H: 9.5%

• Asset under custody (Daiwa Securities) has surpassed ¥100 tn, reaching a record high.

• Wealth Management Division accurately captured customers' asset management needs through total asset

  consulting, and WM Division (Daiwa Securities) achieved its highest ordinary income in the past 10 years.

  • Asset-based revenues*2reached a record high of ¥57.4 bn. Contract AUM of wrap account service (¥5.3 tn*3) hit a record high.

  • Net asset inflow*4remained at a high level (¥723.6 bn).

  • For Daiwa Next Bank, yen deposit balance exceeded ¥4 tn, and ordinary income reached a record high of ¥10 bn.

• AUM in both Securities and Real Estate Asset Management continued to expand steadily.

  • Securities Asset Management increased revenues and income. Net fund inflows continued, leading to record highs in assets under management*5(¥33.5 tn) and ordinary income (¥16.0 bn).

  • Real Estate Asset Management saw increased revenues but decreased income. Assets under management*5reached a record high (¥1.7 tn).

• Global Investment Banking saw revenue and income growth as M&A-related revenue reached a record high.

  Interim dividend: 29yen, dividend pay-out ratio: 51.4%

  *1 For the trend in base income, see p.8 *4 For the trend in net asset inflow, see p.27

  
  
  
  
  Summary (2Q/FY2025, QoQ) In addition to expanding revenue from stock-related assets, flow revenue grew, resulting in higher revenue and income. Base income*¹ expanded significantly.

  Consolidated earnings results	FY2025 2Q	% Changes vs 1Q/FY2025
  Net operating revenues	¥172.6 bn	+11.2%
  Ordinary income	¥54.1 bn	+24.0%
  Profit attributable to owners of parent	¥47.7 bn	+52.8%

• Wealth Management Division deepened total asset consulting, leading to an increase in sales of a wide range of products. WM Division (Daiwa Securities) achieved its highest ordinary income since the 3Q of FY2013.

• Assets under management continued to expand in both Securities Asset Management and Real Estate Asset Management. Alternative Asset Management recorded a loss.

• Global Markets & Investment Banking saw a significant recovery. Global Markets increased equity revenue as customer flow grew. In Global Investment Banking, domestic M&A-related revenue reached a record high, and equity underwriting performed strongly.

• Annualized ROE: 11.6%

Net Operating Revenues

Ordinary Income

Profit Attributable to Owners of Parent

(¥ Billions) 200

150

100

(¥ Billions)

80

60

40

(¥ Billions) 60

53.7

46.6

47.7

39.5

29.7 28.4

29.9 31.2

23.9

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2023 FY2024 FY2025

40

164.5

174.2

172.6

161.0 161.5

144.3 147.8

149.1

155.2

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2023 FY2024 FY2025

72.8

63.0

56.7

51.0

54.1

40.8 40.8

43.7

37.7

2Q 3Q 4Q

FY2023

1Q 2Q

3Q

FY2024

4Q 1Q 2Q

FY2025

20

50 20

0 0 0

Consolidated

Financial Summary

(¥ Millions)	FY2024			FY2025		% Change vs 1Q/FY25	% Change vs 2Q/FY24	FY2024	FY2025	% Change vs 1H/FY24	FY2024
	2Q	3Q	4Q	1Q	2Q			1H	1H
Operating revenues	354,330 336,748 345,577			326,400	375,349	15.0%	5.9%	689,688	701,750	1.7%	1,372,014
Net operating revenues	161,099 161,532 174,218			155,252	172,628	11.2%	7.2%	310,238	327,880	5.7%	645,990
SG&A	119,424 124,496 121,302			119,074	122,785	3.1%	2.8%	233,448	241,859	3.6%	479,247
Ordinary income	72,887 63,061 51,027			43,716	54,192	24.0%	-25.6%	110,627	97,908	-11.5%	224,716
Profit (loss) attributable to owners of parent	53,791 46,628 29,954			31,237	47,726	52.8%	-11.3%	77,785	78,964	1.5%	154,368
Total assets	33,694,875 36,708,372 36,024,346			34,617,316	36,915,300	33,694,875			36,915,300	36,024,346
Net assets	1,819,449 1,916,791 1,923,287			1,893,724	1,944,434	1,819,449			1,944,434	1,923,287
Shareholders' equity*	1,556,485 1,632,234 1,639,738			1,614,409	1,667,999	1,556,485			1,667,999	1,639,738
EPS (¥)	38.18 33.04 21.19			22.20	34.31	55.31			56.44	109.53
BPS (¥)	1,103.61 1,156.39 1,158.82			1,154.60	1,201.74	1103.61			1,201.74	1,158.82
ROE (Annualized)	13.9% 11.7% 7.3%			7.7%	11.6%	10.1%			9.5%	9.8%

29 yen

FY2025 Interim Dividend

44 yen

Full-year minimum dividend FY2024-FY2026

Consolidated

Segment Summary

Net operating revenues	FY2024			FY2025		% Change vs 1Q/FY25	% Change vs 2Q/FY24	FY2024	FY2025	% Change vs 1H/FY24	FY2024
	2Q	3Q	4Q	1Q	2Q			1H	1H
WM	60,673	66,068	66,455	62,905	74,689	18.7%	23.1%	123,316	137,595	11.6% 255,841
WM Division (Daiwa Securities)	53,430	59,655	59,837	55,500	65,759	18.5%	23.1%	110,196	121,259	10.0% 229,688
Daiwa Next Bank	6,458	5,629	5,842	6,599	7,922	20.0%	22.7%	11,411	14,521	27.3% 22,884
AM	29,188	19,562	30,062	28,213	24,996	-11.4%	-14.4%	52,893	53,210	0.6% 102,517
Securities AM	14,300	15,143	14,963	15,192	17,158	12.9%	20.0%	27,853	32,350	16.1% 57,960
Real Estate AM	9,175	7,225	6,142	9,665	8,039	-16.8%	-12.4%	16,251	17,704	8.9% 29,619
Alternative AM	5,712	-2,806	8,956	3,355	-201	-	-	8,788	3,154	-64.1% 14,938
GM&IB	55,467	65,714	61,837	49,827	60,745	21.9%	9.5%	106,644	110,572	3.7% 234,196
GM	36,395	40,321	36,031	32,554	39,281	20.7%	7.9%	72,691	71,835	-1.2% 149,044
GIB	19,072	25,393	25,805	17,272	21,464	24.3%	12.5%	33,953	38,737	14.1% 85,151
Other/Adjustments	15,770	10,186	15,863	14,304	12,197	-	-	27,384	26,502	-	53,435
Consolidated total	161,099	161,532	174,218	155,252	172,628	11.2%	7.2%	310,238	327,880	5.7%	645,990

(¥ Millions)

Ordinary income	FY2024			FY2025		% Change vs 1Q/FY25	% Change vs 2Q/FY24	FY2024	FY2025	% Change vs 1H/FY24	FY2024
	2Q	3Q	4Q	1Q	2Q			1H	1H
WM	15,949	21,057	23,179	19,734	29,565	49.8%	85.4%	36,427	49,300	35.3% 80,664
WM Division (Daiwa Securities)	12,265	18,283	20,038	15,610	23,933	53.3%	95.1%	30,301	39,544	30.5% 68,623
Daiwa Next Bank	4,280	3,316	3,679	4,355	5,702	30.9%	33.2%	7,112	10,058	41.4% 14,108
AM	24,669	29,217	12,216	14,772	12,072	-18.3%	-51.1%	35,984	26,844	-25.4% 77,418
Securities AM	7,130	7,037	7,038	7,517	8,493	13.0%	19.1%	13,766	16,011	16.3% 27,841
Real Estate AM	9,090	8,883	7,163	6,935	5,905	-14.9%	-35.0%	12,982	12,840	-1.1% 29,029
Alternative AM	8,448	13,296	-1,985	318	-2,326	-	-	9,235	-2,007	- 20,547
GM&IB	8,161	15,229	13,319	5,001	14,861	197.1%	82.1%	14,189	19,862	40.0% 42,738
GM	6,615	9,072	6,323	2,639	8,414	218.8%	27.2%	13,609	11,054	-18.8% 29,005
GIB	1,151	5,566	6,985	903	6,086	573.8%	428.8%	-946	6,989	- 11,605
Other/Adjustments	24,106	-2,443	2,311	4,207	-2,306	-	-	24,027	1,901	-	23,895
Consolidated total	72,887	63,061	51,027	43,716	54,192	24.0%	-25.6%	110,627	97,908	-11.5%	224,716
Base Income	32,171	36,978	37,381	34,188	43,963	28.6%	36.7%	63,175	78,152	23.7%	137,535

Consolidated

Segment Summary

(¥ Billions)

Net operating revenues Ordinary income

WM Division

AM Division

WM Division (Daiwa Securities) Daiwa Next Bank

74.6

62.6

66.0

66.4

60.6

62.9

29.5

20.4

21.0

23.1

15.9

19.7

Securities AM Real Estate AM Alternative AM

29.1

23.7

29.2

19.5

30.0

28.2

24.9

12.2

24.6

11.3

12.0

14.7

1Q	2Q	3Q	4Q	1Q	2Q
FY2024				FY2025

1Q	2Q	3Q	4Q	1Q	2Q
FY2024				FY2025

GM&IB Division

63.0

54.1

51.0

43.7

37.7

1

2

3

4

5

6

FY2025

FY2024

2Q

1Q

4Q

3Q

2Q

1Q

31.0

34.1

37.3

32.1

43.9

36.9

GM&IB Division

AM Division Base Income

WM Division Other/Adjustments

72.8

Consolidated Ordinary Income / Base Income

GM GIB

61.8

60.7

51.1

55.4

49.8

8.1

6.0

5.0

14.8

13.3

15.2

65.7

1Q	2Q	3Q	4Q	1Q	2Q
FY2024				FY2025

Consolidated

Trends in Consolidated Ordinary Income and Base Income

• Base income for the 1H totaled at ¥78.1 bn, +23.7% YoY.

• On track to surpass the Medium-term Management Plan's final-fiscal year target of ¥150.0 bn.

(¥ Billions)

Consolidated Ordinary Income / Base Income (annually)

Consolidated Ordinary Income / Base Income (quarterly)

250

WM Division

Securities AM

Real Estate AM

Base income

80 WM Division Securities AM Real Estate AM Base income

200

60

54.1

150

100

40 5.9

8.4

20

43.9

224.7

174.5

135.8

137.5

115.1

114.2

87.8

97.9

86.9

53.3

73.1

78.1

29.5

50

0

FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

1H

0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

▲ 20

※ Results for each segment are calculated based on the management accounting of each group company. For equity-method affiliates,

equity in earnings (losses) of affiliates are recorded in the relevant segment. 8

Consolidated

B/S Summary

Consolidated Balance Sheet (September 30, 2025)

Current liabilities			31,854	(1,158)
	Trading products		6,886	(-550)
		Trading securities and other	3,660	(-1,150)
		Stocks, Convertible bonds	179	(24)
		Bonds	3,355	(-929)
		Other	124	(-245)
		Derivatives transactions	3,226	(599)
	Loans payable secured by securities		15,226	(-218)
	Deposits for banking business		4,780	(483)
	Short-term loans payable		1,579	(164)
	Current portion of bonds		370	(-29)
Long-term liabilities			3,110	(-288)
	Bonds payable		1,143	(-74)
	Long-term loans payable		1,814	(-222)
Total liabilities			34,970	(869)
Net assets			1,944	(21)
	Owners' equity		1,451	(8)
	Accumulated other comprehensive income		216	(19)
	Non-controlling interests		270	(-6)
Total liabilities and net assets			36,915	(890)

(¥ Billions)

Current assets			35,131	(856)
	Cash and deposits Short-term investment securities Trading products		4,535 1,899 10,432	(778) (312) (2,104)
		Trading securities and other	7,151	(1,607)
		Stocks, Convertible bonds	282	(56)
		Bonds	4,408	(311)
		Beneficiary certificates	34	(4)
		Other	2,425	(1,234)
		Derivatives transactions	3,280	(497)
	Operational investment securities 108			(1)
	(after allowance for possible investment losses)
	Loans secured by securities 13,910			(-1,467)
Non-current assets			1,783	(34)
	Property, plant and equipment		938	(-3)
	Intangible assets		145	(8)
	Investments and other assets		699	(30)
		Listed stocks	154	(20)
		Unlisted stocks	37	(-1)
		Affliated company stocks, etc.	339	(4)
		Other	168	(6)

Total Assets

36,915

(890)

※ Figures in parentheses indicate changes from March 31, 2025.

Total assets: ¥36.91 tn

Net assets: ¥1.94 tn

Shareholders' equity**: ¥1.66 tn

• 83.4% of total assets have high liquidity*.

  * Cash and deposits + Short-term investment securities + Trading products + Loans secured by securities

• Shareholders' equity**increased by

  ¥28.2 bn from March 31, 2025.

  ** Shareholders' equity = Owners' equity + Accumulated other comprehensive income

  
  
  Consolidated
  
  

  Financial Management (Regulatory Capital & Regulatory Liquidity)

  Consolidated Capital Adequacy Ratio

Total qualifying capital (¥ billions) Common equity tier 1 (¥ billions)

Consolidated total capital ratio Consolidated common equity tier 1 capital ratio

【Regulatory Capital (Basel III)】

1,495

1,502

1,498

1,529

1,557

1,615

1,470

1,547

1,550

1,305 1,308

1,299

1,331

1,367

1,413

1,274

1,351

1,355

21.57%

22.12%

22.40%

21.58%

20.96%

20.45%

21.50%

21.84%

21.83%

18.83%

19.26%

19.42%

18.78%

18.41%

17.72%

18.82%

19.07%

19.08%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2023 FY2024

1Q

FY2025

Consolidated Liquidity Coverage Ratio

Consolidated leverage ratio

(As at June 30, 2025)

• Consolidated Total Capital Ratio: 21.83%

• Consolidated Tier 1 Capital Ratio: 21.73%

• Consolidated Common Equity Tier 1 Capital Ratio: 19.08%

• Consolidated Leverage Ratio: 5.45%

※ Figures are as at the end of each quarter

Total exposures (¥ billions) Tier 1 capital (¥ billions)

Consolidated levarage ratio

High-quality liquid assets (¥ billions) Net cash outflows (¥ billions)

Consolidated liquidity coverage ratio

【Regulatory Liquidity (Basel III)】 (Daily average Jul. - Sept. 2025)

26,077

27,268

28,623

26,665

29,240 28,859 28,286

24,439 24,461

5.72% 5.48%

6.09% 6.21% 5.43% 5.48%

5.48% 5.33% 5.45%

1,491 1,495 1,489 1,520 1,554 1,462 1,605 1,540 1,544

1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2023 FY2024

4Q 1Q

FY2025

131.3% 130.7% 131.4%

135.2%

131.1%

136.6% 142.9%142.9% 138.4% 142.1%

• Consolidated Liquidity Coverage Ratio:

142.1%

2,933

2,729

2,930 2,886

2,632

2,799

2,815

2,077

2,242

2,229

2,134

2,635

2,009

1,926

1,957

1,970

2,642

1,908

2,800

1,970

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY2023 FY2024 FY2025