The company reported strong recent results with Q2 FY2025 net operating revenue of JPY 172.6B (+11.2% QoQ) and net income of JPY 47.7B (+52.8% QoQ), driven by strong equity markets, record M&A fees, and robust wealth management flows. The Asset Management Division manages investment trusts and funds across private equity, real estate, renewable energy, and infrastructure; Global Markets handles securities sales, trading and M&A advisory; and Wealth Management serves individuals and private clients.
Cyborg Score Rationale
Recent momentum is strong with record M&A fees, robust wealth management flows, and management confidence in exceeding midterm targets ahead of schedule. However, net profit margin declined from 20.9% to 10.3% over the last 12 months alongside modest revenue growth forecasts of about 0.4% annually.
Top Insights
Daiwa Asset Management secured net inflows of JPY 158.6 billion in publicly offered equity investment trusts excluding ETFs, demonstrating strong asset gathering momentum.
Over the last 12 months, net profit margin fell sharply from 20.9% to 10.3%, indicating margin compression despite revenue growth.
Q2 FY2025 delivered record M&A fees and strong equity market participation, with net income jumping 52.8% quarter-over-quarter.
Daiwa Next Bank deposits exceeded JPY 4 trillion, with foreign currency deposits surpassing JPY 700 billion, showing effective retail deposit gathering.
Named Competitors
Nomura — Japan's largest financial services and investment banking group
SMBC Nikko Securities — Full-service securities and asset management services
Goldman Sachs Japan — Global investment banking and wealth management
Morgan Stanley Japan — International investment banking and capital markets
Recent Developments
(February 2026) Q3 FY2026 revenue of ¥271,228 million and basic EPS of ¥33.66 reported with net margin at 10.3%
(February 2026) Margin compression concerns raised by analysts citing halved net margin to 10.3% alongside slower forecast growth profiles
(Q2 FY2025) Record M&A advisory fees and strong equity investment trust net inflows of JPY 158.6 billion
Open the full interactive Daiwa Securities Group Inc. report
Strategic research, analyst-debate audio, full Cyborg Score breakdown across 11 dimensions, and saved-company audio playlists.