Daiwa Securities G, January-March net profit 2.3 times higher to 39.6 billion yen – Strong performance in both retail and corporate – Bloomberg

Daiwa Securities Group Inc. announced on the 25th that consolidated net income for the January-March period (fourth quarter) of 2024 was 39.6 billion yen, 2.3 times higher than the same period last year. With the stock market booming, the retail and wholesale divisions performed well, boosting profits.

Net income for the full year ending March 2024 was 121.6 billion yen, an increase of 90% from the previous fiscal year. This exceeded the average estimate of 107.2 billion yen by analysts compiled by Bloomberg. The year-end dividend will be 25 yen per share (12 yen for the same period last year), and the annual dividend will be 44 yen (23 yen for the same period last year).

In the January-March period, the stock market saw active trading, with the Nikkei stock average hitting a record high for the first time in 34 years since the collapse of the bubble economy in February, and at one point surpassing the 40,000 yen mark. Under these circumstances, ordinary profit on a full-year basis was 174.6 billion yen, double the previous year’s level, the highest level in nine years.

Ordinary profit by division for the fourth quarter was 20.8 billion yen for the retail division, 3.3 times higher than the same period last year, and 13.4 billion yen for the wholesale division, 3.7 times higher than the same period last year. The asset management division increased 14% year on year to 13.7 billion yen.

At a press conference on the same day, Kotaro Yoshida, Managing Executive Officer and Chief Financial Officer, summarized the results by saying, “The result is a combination of highly stable base earnings and flow earnings backed by record market support.” He went on to say, “We have made great progress in the strategies that we have been pursuing as a group, and we are feeling a strong response.”

Main revenues for the January-March period (increases and decreases are compared to the same period last year)
Operating revenue: 27% increase to 372 billion yen Brokerage commission 29.4 billion yen, 79% increase Trading profit 26.9 billion yen, 94% increase Offering/distribution fee: 6.6 billion yen, 3.1x

On the other hand, Mr. Yoshida analyzed the recent depreciation of the yen and appreciation of the dollar as a structural factor that has made it difficult for Japan to earn money through trade. If the yen depreciates further, “there is a possibility that there will be market movements that will put a check on the yen’s depreciation.”

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(Updated with CFO’s comments regarding foreign exchange market)