Daiwa Securities Group Inc.
3Q FY2022 Earnings Announcement
January 30, 2023
This presentation may contain forward-looking statements about the Daiwa Securities Group. You can identify these statements by the fact that they do not relate strictly to historic or current facts. These statements discuss future expectations, identify strategies, contain projections of results of operations or of financial condition or state other "forward-looking" information. These statements are based on currently available information and represent the beliefs of the management of the Daiwa Securities Group. These statements are subject to numerous risks and uncertainties that could cause the Daiwa Securities Group's actual results, performance, achievements or financial condition to differ materially from those described or implied in the forward-looking statements. The Daiwa Securities Group undertakes no obligation to publicly update any forward-looking statements after the date of this presentation. These potential risks and uncertainties include, but are not limited to: competition within the financial services industries in Japan and overseas, our ability to adjust our business focus and to maintain profitable strategic alliances, volatile and sudden movements in the international securities markets, foreign exchange and global economic situations affecting the Daiwa Securities Group.
Table of Contents
Highlights | 3-4 |
Financial Summary | 5-7 |
B/S & Financial Management Summary | 8-9 |
P/L Summary | 10 |
Breakdown of SG&A | 11-12 |
Overseas Operations | 13 |
Segment Information | 14-21 |
Reference | 22-35 |
2
Highlights (3Q/FY2022, YoY)
Both net operating revenues and ordinary income decreased YoY.
Consolidated earnings results
Net operating revenues Ordinary income Profit attributable to owners of parent
FY2022 1Q-3Q
¥338.4 bn
¥56.1 bn
¥46.7 bn
FY2021 1Q-3Q
¥390.3 bn
¥112.4 bn
¥76.9 bn
-
Changes vs
1Q-3Q/FY2021
-13.3%
-50.1%
-39.2%
- Retail Division decreased in both operating revenues and ordinary income due to a decrease in revenues from customer order flow, but secured ordinary income of ¥19.6 bn led by steady progress in shifting to wealth management business model and cost reduction.
- Contract amount of wrap account service is ¥434.5 bn and net inflow expanded to ¥225.4 bn, the highest level in seven years. Contract AUM hit a record high of ¥2.97 tn.*
- For Wholesale Division, ordinary income for Global Markets and Global Investment Banking deteriorated due to a decrease in client activities as a result of uncertain market condition.
- Asset Management Division maintained the same level as last year.
- In securities asset management, net inflow of publicly offered stock investment trusts (excluding ETF) was ¥403.0 bn, the highest level in seven years.
- Real estate asset management reached a record high in net operating revenues and ordinary income. **
- In Investment Division, ordinary income jumped 2.1 times YoY led by revenue expansion from private equity investment and renewable energy investment.
- Overseas operations recorded black in all areas, and ordinary income was up 2.1 times YoY.
* Includes Wholesale Division ** Since disclosures of segment information started in FY2010
3
Summary (3Q/FY2022, QoQ)
Both net operating revenues and ordinary income increased. Ordinary income is ¥23.1 bn, increase of 56.0% QoQ.
Consolidated earnings results | FY2022 3Q | |||
Net operating revenues | ¥121.4 bn | |||
Ordinary income | ¥23.1 bn | |||
Profit attributable to owners of parent | ¥15.2 bn |
FY2022 2Q
¥110.9 bn
¥14.8 bn
¥19.5 bn
- Changes vs 2Q/FY2022
+9.5%
+56.0%
-21.9%
- For Retail Division, both net operating revenues and ordinary income increased due to an increase in transaction-based revenues such as equity revenues and fixed income revenues, as well as
an increase in wrap-relatedrevenues(asset-based revenues). - For Wholesale Division, Global Markets improved QoQ driven by an increase in FICC revenue. Global Investment Banking increased in both net operating revenues and ordinary income.
- Annualized ROE: 4.3%
Net Operating Revenues | Ordinary Income | Profit Attributable to | |||
Owners of Parent | |||||
(¥ Billions) | (¥ Billions) | (¥ Billions) |
4
Consolidated
Financial Summary
FY2021 | FY2022 | % Change | % Change | FY2021 | FY2022 | % Change | ||||||||
(¥ Millions) | vs | vs | vs | FY2021 | ||||||||||
3Q | 4Q | 1Q | 2Q | 3Q | 1Q-3Q | 1Q-3Q | ||||||||
2Q/FY22 | 3Q/FY21 | 1Q-3Q/FY21 | ||||||||||||
Operating revenues | 166,599 | 148,333 | 146,640 | 192,552 | 233,036 | 21.0% | 39.9% | 471,138 | 572,229 | 21.5% | 619,471 | |||
Net operating revenues | 134,374 | 111,776 | 106,122 | 110,933 | 121,433 | 9.5% | -9.6% | 390,317 | 338,488 | -13.3% | 502,093 | |||
SG&A | 98,323 | 94,817 | 97,274 | 98,942 | 99,913 | 1.0% | 1.6% | 291,741 | 296,130 | 1.5% | 386,559 | |||
Ordinary income | 40,561 | 23,340 | 18,085 | 14,855 | 23,170 | 56.0% | -42.9% | 112,481 | 56,112 | -50.1% | 135,821 | |||
Profit (loss) attributable to | 26,698 | 17,989 | 11,878 | 19,576 | 15,295 | -21.9% | -42.7% | 76,902 | 46,750 | -39.2% | 94,891 | |||
owners of parent | ||||||||||||||
Total assets | 26,415,274 | 27,531,089 | 28,747,174 | 31,461,475 | 28,115,421 | 26,415,274 | 28,115,421 | 27,531,089 | ||||||
Net assets | 1,600,496 | 1,639,888 | 1,668,661 | 1,697,428 | 1,657,832 | 1,600,496 | 1,657,832 | 1,639,888 | ||||||
Shareholders' equity* | 1,331,188 | 1,373,282 | 1,400,590 | 1,428,464 | 1,388,380 | 1,331,188 | 1,388,380 | 1,373,282 | ||||||
EPS (¥) | 17.90 | 12.13 | 8.01 | 13.24 | 10.52 | 50.86 | 31.75 | 63.06 | ||||||
BPS (¥) | 897.76 | 925.81 | 943.71 | 971.62 | 955.66 | 897.76 | 955.66 | 925.81 | ||||||
ROE (Annualized) | 8.0% | 5.3% | 3.4% | 5.5% | 4.3% | 7.7% | 4.5% | 7.0% | ||||||
* Shareholders' equity = Owners' equity + Accumulated other comprehensive income
5
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Daiwa Securities Group Inc. published this content on 30 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 January 2023 06:13:27 UTC.