Daiwa Profit Beats Estimates as Equities Business Surges

August 3, 2026 - 08:22

Daiwa Securities Group Inc. posted a quarterly profit that came in well above analyst expectations, marking its best performance in over a decade. The surge was driven by a sharp uptick in its equities business, as the global stock trading boom continued to lift Japan's second-largest brokerage.

Net income for the fiscal first quarter reached its highest level since 2010, according to figures released by the company. The result beat the average estimate compiled from analysts, who had projected a more modest gain. The strong showing was largely attributed to a jump in commission income from stock trading, both domestically and overseas, as retail investors poured back into the market and institutional clients ramped up activity.

Daiwa also saw gains in its investment banking division, with a steady flow of underwriting deals and advisory work. The company's asset management arm contributed as well, benefiting from rising market valuations. Management noted that the trading environment remained favorable, though they stopped short of raising their full-year outlook, citing uncertainty in global markets.

The results underscore how Japanese brokerages are riding a wave of renewed investor interest, fueled by corporate governance reforms and a weaker yen that has attracted foreign capital. Rival Nomura Holdings also reported strong numbers earlier this week. Shares in Daiwa rose modestly in early trading following the announcement, as investors digested the earnings beat against a backdrop of broader market volatility.