Table of Contents

Key Metrics (at consolidated group level)............................................................................................................................

3

Composition of Capital Disclosure .......................................................................................................................................

4

Qualitative Disclosure (Consolidated) ..................................................................................................................................

7

1.

Reconciliation of regulatory capital to balance sheet......................................................................................

7

Overview of Main Features of Regulatory Capital Instruments........................................................................................

9

Quantitative Disclosure (Consolidated)..............................................................................................................................

23

1.

Other quantitative disclosures..........................................................................................................................

23

Consolidated Leverage Ratio..............................................................................................................................................

25

1.

Composition of consolidated leverage ratio ....................................................................................................

25

2.

Reasons for significant differences in the consolidated leverage ratio over previous quarter..............

26

1

Common Equity Tier 1

1,246,566

1,189,895

1,166,908

1,148,768

1,152,962

(CET1)

2

Tier 1

1,431,727

1,360,623

1,337,697

1,314,659

1,327,893

3

Total capital

1,437,718

1,360,623

1,337,697

1,314,659

1,327,893

Risk-weighted assets (amounts)

4

Total risk-weighted assets

7,034,021

6,879,435

6,800,516

6,514,283

6,271,241

(RWA)

Capital ratio

5

CET1 ratio (%)

17.72%

17.29%

17.15%

17.63%

18.38%

6

Tier 1 ratio (%)

20.35%

19.77%

19.67%

20.18%

21.17%

7

Total capital ratio (%)

20.43%

19.77%

19.67%

20.18%

21.17%

Additional CET1 buffer requirements as a percentage of RWA

Capital conservation buffer

8

requirement (2.5% from 2019)

2.50%

2.50%

2.50%

2.50%

2.50%

(%)

9

Countercyclical buffer

0.00%

0.00%

0.00%

0.00%

0.00%

requirement (%)

10

Bank G-SIB and/or D-SIB

0.50%

0.50%

0.50%

0.50%

0.50%

additional requirements (%)

Total of bank CET1 specific

11

buffer requirements (%)

3.00%

3.00%

3.00%

3.00%

3.00%

(row 8 + row 9 + row 10)

CET1 available after meeting

12

the bank's minimum capital

12.43%

11.77%

11.67%

12.18%

13.17%

requirements (%)

Leverage ratio

13

Total leverage ratio exposure

22,721,653

20,641,305

19,588,138

18,239,765

18,785,385

measure

Leverage ratio (%) including

the impact of any

14

applicable temporary

6.30%

6.59%

6.82%

7.20%

7.06%

exemption of central bank

reserves

Basel III

Group

Cross-referenced to

template

Items

Consolidated

CC2

number

Quarter-End

Common Equity Tier 1 capital: Instruments and reserves

(1)

1a+2-1c-26

Shareholders' equity

1,275,520

1a

Common stock and capital surplus

477,848

(i),(j)

2

Retained earnings

850,609

(k)

1c

Treasury stock (Δ)

52,937

(l),(m)

26

Planned distributions (Δ)

-

Others

-

1b

Stock subscription rights

8,433

(p)

3

Accumulated other comprehensive income (and other reserves)

125,416

(o)

5

Minority interest after adjustments

-

6

Common Equity Tier 1 capital before regulatory adjustments

(a)

1,409,371

Common Equity Tier 1 capital: regulatory adjustments

(2)

8+9

Intangible assets other than mortgage-servicing rights (net of related tax liability)

154,606

8

Goodwill (net of related tax liability)

50,853

(e),(g)

9

Other intangibles other than mortgage-servicing rights(net of related tax liability)

103,753

(f)

10

Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of

1,121

(d),(h)

related tax liability)

11

Cash-flow hedge reserve

1,413

(n)

12

Shortfall of allowance to expected losses

-

13

Securitization gain on sale (as set out in paragraph 562 of Basel II framework)

-

14

Gains and losses due to changes in own credit risk on fair valued liabilities

590

15

Defined-benefit pension fund net assets

-

16

Investments in own shares (if not already netted off paid-in capital on reported balance sheet)

156

(b)

17

Reciprocal cross-holdings in common equity

-

Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory

18

consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued

4,915

(a),(b),(c),(g)

share capital (amount above 10% threshold)

19+20+21

Amount exceeding the 10% threshold

-

Significant investments in the common stock of banking, financial and insurance entities that are

19

outside the scope of regulatory consolidation, net of eligible short positions (amount above 10%

-

threshold)

20

Mortgage servicing rights (amount above 10% threshold)

-

21

Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related

-

tax liability)

22

Amount exceeding the 15% threshold

-

23

of which: significant investments in the common stock of financials

-

24

of which: mortgage servicing rights

-

25

of which: deferred tax assets arising from temporary differences

-

27

Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to

-

cover deductions

28

Total regulatory adjustments to Common equity Tier 1

(b)

162,804

Common Equity Tier 1 capital

29

Common Equity Tier 1 capital (CET1) ((a) - (b))

(c)

1,246,566

Basel III

Group

Cross-referenced to

template

Items

Consolidated

CC2

number

Quarter-End

Additional Tier 1 capital: instruments

(3)

30

31a

Shareholders' equity

-

31b

Stock subscription rights

-

32

Liabilities

147,100

Instruments issued by Special Purpose Companies

-

34-35

Minority interest after adjustments

38,942

(q)

33+35

Tier 1 capital under Basel II included in Additional Tier 1 capital under transitional Basel III rules

-

33

Capital instruments issued by Daiwa Securities Group Inc. and its Special Purpose Companies

-

35

Capital instruments issued by consolidated subsidiaries and affiliates (excluding Special Purpose

-

Companies of Daiwa Securities Group Inc.)

36

Additional Tier 1 capital before regulatory adjustments

(d)

186,042

Additional Tier 1 capital: regulatory adjustments

37

Investments in own Additional Tier 1 instruments

-

38

Reciprocal cross-holdings in Additional Tier 1 instruments

-

Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory

39

consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued

881

(a),(b),(c),(g)

common share capital of the entity (amount above 10% threshold)

40

Significant investments in the capital of banking, financial and insurance entities that are outside the scope of

-

regulatory consolidation (net of eligible short positions)

42

Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions

-

43

Total regulatory adjustments to Additional Tier 1 capital

(e)

881

Additional Tier 1 capital

44

Additional Tier 1 capital ((d) - (e))

(f)

185,161

Tier 1 capital

45

Tier 1 capital ((c) + (f))

(g)

1,431,727

Tier 2 capital: instruments and allowance

(4)

Shareholders' equity

-

46

Stock subscription rights

-

Liabilities

-

Capital instruments issued by Special Purpose Companies

-

48-49

Minority interest after adjustments

9,162

(q)

47+49

Tier 2 capital under Basel II included in Tier 2 capital under transitional Basel III rules

-

47

Capital instruments issued by Daiwa Securities Group Inc. and its Special Purpose Companies

-

49

Capital instruments issued by consolidated subsidiaries and affiliates (excluding Special Purpose

-

Companies of Daiwa Securities Group Inc.)

50

General allowance included and eligible allowance in Tier 2 capital

-

50a

General allowance

-

50b

Eligible allowance

-

51

Tier 2 capital before regulatory adjustments

(h)

9,162