Daiwa Securities Group reported ordinary profit of ¥166.4bn for the six months to 30 September 2026, up 69.9% on a year earlier. Net operating revenue rose 35.5% to ¥444.3bn and profit attributable to owners of the parent rose 36.6% to ¥107.8bn, according to its interim earnings release. Ordinary profit is earnings before extraordinary gains and losses. The same period also brought ORIX Bank into the group, which changed the balance sheet more than the income statement.
What ORIX Bank brought with it
Daiwa Next Bank, Daiwa's wholly owned bank subsidiary, completed the purchase of all ORIX Bank shares on 3 August 2026, under a share transfer agreement signed with ORIX Corporation on 27 April 2026. The deemed acquisition date was 1 July, and ORIX Bank's results are in the consolidated figures for 1 July to 30 September.
| Item | Detail |
|---|---|
| Buyer | Daiwa Next Bank, a wholly owned subsidiary of Daiwa Securities Group |
| Completion | 3 August 2026 (deemed acquisition date 1 July 2026) |
| Consideration | ¥385.2bn in cash for 100% of the shares |
| Goodwill | ¥103.45bn, amortised straight-line over 20 years |
| Other intangibles | ¥24.4bn, amortised over 3 to 21 years depending on type |
| Assets acquired | ¥3.29tn, including operating loans of ¥2.77tn |
| Liabilities assumed | ¥3.01tn, including bank deposits of ¥2.51tn |
| Advisory fees | ¥133mn |
Daiwa paid ¥385.2bn in cash and recorded goodwill of ¥103.45bn, which it attributes mainly to expected future excess earning power. The goodwill is amortised on a straight-line basis over 20 years. Consolidated goodwill stood at ¥117.1bn at the end of September, against ¥16.1bn at the end of March.
The balance sheet grew accordingly. Total assets were ¥40.41tn, against ¥38.08tn in March. Operating loans were ¥5.54tn, against ¥3.61tn, and bank deposits were ¥7.50tn, against ¥5.04tn. The release does not split these changes between ORIX Bank and organic movement. It does give the acquired amounts at the combination date: ¥2.77tn of operating loans and ¥2.51tn of deposits.
Earnings: growth and its limits
Daiwa's presentation says ordinary profit and net profit were records for a first half and that every division earned more. Daiwa Next Bank's ordinary profit rose 117.8% to ¥21.9bn. ORIX Bank contributed ¥6.7bn to the wealth management division's consolidated ordinary profit, after goodwill amortisation.
The second quarter alone was weaker than the first. Ordinary profit fell 11.2% from the previous quarter to ¥78.3bn and net profit fell 8.8% to ¥51.4bn, even with ORIX Bank included for the full quarter. Selling, general and administrative expenses rose 7.1% to ¥153.0bn, which the deck links mainly to the ORIX Bank consolidation. Brokerage commissions fell 24.4% from the first quarter to ¥26.4bn.
Dividend
The board declared an interim dividend of ¥39 per share, against ¥29 a year earlier, totalling ¥54.44bn, with payment starting on 1 December. Daiwa puts the payout ratio at 50.3%. The year-end payment is undecided.
Daiwa's policy is a payout ratio of at least 50% each half, with a floor of ¥44 per share for the full year through the year to March 2027. Daiwa publishes no earnings forecast, saying results in securities business depend heavily on market conditions. The ¥44 figure is a dividend floor, not a profit projection.
The interim earnings release is not subject to review by an auditor. Daiwa plans to file its half-year securities report on 12 November.