DAIWA SECURITIES GROUP INC. Daiwa Securities Group
1H FY2022 Management Strategy Update
November 25, 2022
Seiji Nakata, President and CEO
Daiwa Securities Group Inc.
These materials were produced to provide information on results through the second quarter of FY2022 and the managementʼs vision for the future. They are not intended as a solicitation for investment in securities issued by Daiwa Securities Group Inc. These materials were produced based on information that was disclosable as of November 25, 2022. The opinions, forecasts, and other forward-looking statements in these materials are based on the companyʼs judgment at the time they were produced, and Daiwa Securities Group Inc. makes no guarantees in regard to the accuracy and completeness of the information contained herein. This information may also be revised without prior notice in the future.
Table of Contents
- - Overview of the 1H of Year 2 of
the Medium-Term Management Plan ・・・・3
- - Individual Strategies ・・・・ 9
- - Sustainability・・・・ 36 Appendix ・・・・ 42
- - Overview of the 1H of Year 2 of the Medium-Term Management Plan
Ⅰ - Overview of the 1H of Year 2 of the Medium-Term Management Plan
1H Market Environment
The market fluctuates wildly as the global economy faces major turning points, such as Russia's invasion of Ukraine, global division and raging inflation, and the shift from long-term monetary easing.
Equity Markets (Parenthesis shows FY2022 average forecast projected as of March 2021)
FX Markets
The FY2022 averages for the Nikkei Average and S&P 500 lower than projected
S&P500(left)
3,993pt
（Forecast︓4,350pt）
Nikkei Average
(right)
￥28,264
（Forecast︓￥34,000）
Currently also a sense of a lull in the sharp weakening of the yen since the beginning of 2022
EUR/JPY(right)
¥143.6
USD/JPY(left)
¥138.8
（Forecast︓ ¥110）
（pt） | （yen） | （yen） | （yen） |
Bond Markets
price volatility＊1＞
Yields have risen since the beginning of 2022
U.S.(left) | Volatility now declining after | U.S. |
3.81％ | surging since the beginning of 2022 | |
（Forecast︓2.00%） | (left) | |
Japan | ||||
Japan(right) | (right) | |||
0.24％ |
（Forecast︓0.18%）
（％） | （％） | （pt） | （pt） |
*1 Japan︓S&P/JPX JGB VIX US︓MOVE（Source）Bloomberg All graphs use weekly data（period : April 2, 2021 to November 11, 2022） | 4 |
Ⅰ - Overview of the 1H of Year 2 of the Medium-Term Management Plan
1H Performance Summary
Group consolidated ordinary income for FY2022 1H decreased substantially in Wholesale Division due to severe market environment while Retail Division, Asset Management Division, and Investment Division performed well and secured a certain level of profit.
Consolidated Ordinary Income
（¥ billions）
Previous Medium-Term Management Plan | Current Medium-Term |
Management Plan | |
Progress on Financial KPIs
Performance | Financial Base | ||
Ordinary Income | ROE | Consolidated total | |
capital ratio | |||
（FY2022 1H） | （FY2022 1H） | ||
（As of June 30, 2022） | |||
¥32.9 billion | 4.5％ | 20.43％ | |||||||
Target (FY2023) | Target (FY2023) | Target (FY2023) | |||||||
¥200 billion or more | 10％ or higher | Maintain at | |||||||
18％ or higher | |||||||||
Wealth Management Business | Hybrid Strategy | ||||||||
Retail Division asset based revenues | FY2022 | Hybrid-related | |||||||
2Q | |||||||||
ordinary income | |||||||||
Revenues | Ratio | and income ratio | |||||||
（FY2022 1H） | |||||||||
¥20.7 billion | 51.6% | ¥21.5 billion | |||||||
Target (FY2023 4Q) | 65% | ||||||||
Target (FY2023.4Q) | Target (FY2023) | ||||||||
¥24 billion | |||||||||
Estimate (FY2022 2Q) | 50％ or higher | ¥50 billion or more | |||||||
Around 25％ | |||||||||
¥19.8 billion | |||||||||
5
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Daiwa Securities Group Inc. published this content on 24 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2022 23:43:17 UTC.
