Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Code number: 8601 Stock Exchange Listings: Tokyo, Nagoya URL: https://www.daiwa-grp.jp/english/ Scheduled date to commence dividend payments: － Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for analysts) (1) Consolidated operating results (Millions of yen, % of change from previous year) Operating revenue Net operating revenue Operating income Ordinary income FY 2026 434,364 33.1 % 220,399 42.0 % 77,512 114.3% 88,089 101.5% FY 2025 326,400 (2.7) % 155,252 4.1 % 36,177 3.0% 43,716 15.8% FY 2026: 85,035 million yen , 156.6% ; FY 2025: 33,144 million yen , (45.5)% Profit attributable to owners of parent Net income per share Diluted net income per share FY 2026 56,414 80.6% 40.68 Yen 40.06 Yen FY 2025 31,237 30.2% 22.20 Yen 21.94 Yen (2) Consolidated financial conditions (Millions of yen, except per share amounts and percentage) Total assets Total net assets Equity ratio Net assets per share As of Jun. 30,2026 39,867,264 2,077,378 4.5 % 1,294.66 Yen As of Mar. 31,2026 38,077,646 2,045,809 4.6 % 1,272.72 Yen As of Jun. 30, 2026: 1,796,774 million yen ; As of Mar. 31, 2026: 1,763,569 million yen Dividends per share (yen) First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total FY 2025 － 29.00 － 35.00 64.00 FY 2026 (actual) － FY 2026 (expected)* － － － 44.00 Representative: Akihiko Ogino, President and CEO For inquiry: Kana Nakamura, Executive Director, Corporate Planning Dept. Investor Relations Office (Phone +81-3-5555-1111) August 3, 2026 Financial Summary (Consolidated) For the three months period ended June 30, 2026 <Under Japanese GAAP> (Figures less than one million yen are rounded down) 1. Consolidated financial results (April 1, 2026 to June 30, 2026) (Note) Comprehensive income: (Reference) Stockholders’ equity (Total net assets - Share acquisition rights - Non-controlling interests): 2. Cash dividends (Note) Modification from the most recently announced dividend forecast: None * Daiwa Securities Group Inc. (hereinafter the “Company”) will basically pay dividends semiannually (interim and year-end dividends) at a payout ratio of 50% or more based on consolidated financial performance. In addition to this, the Company has set a minimum dividend per share (full year) of 44 yen from the fiscal year ending March 31, 2025 to the fiscal year ending March 31, 2027. For convenience, the minimum dividend for the full year is shown in the total column of FY 2026 (expected) in the above table. As indicated in 3. below, the Company does not forecast operating results and it does not present the actual amount of the full- year dividends for FY 2026 because those amounts are currently undetermined. Those amounts will be determined in line with the aforementioned policy, taking into consideration the consolidated operating results.
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As of Jun. 30, 2026 : 1,569,378,772 ; As of Mar. 31, 2026 : 1,569,378,772 As of Jun. 30, 2026 : 181,602,635 ; As of Mar. 31, 2026 : 183,731,624 As of Jun. 30, 2026 : 1,386,824,170 ; As of Jun. 30, 2025 : 1,407,108,448 3. Earnings forecasts for the fiscal year ending March 31, 2027 (consolidated) Daiwa Securities Group’s (hereinafter the “Group”) principal business is securities-related business, and the performance of the Group is significantly influenced by the economic and market environment in which it operates. Therefore, the Company does not disclose the forecasts of consolidated operating results, considering the difficulty to forecast the performance. 4. Other notes (1) Significant changes in the scope of consolidation during the period: None Newly included companies: None Excluded companies: None (2) Application of accounting methods which are exceptional for quarterly consolidated financial statements: None (3) Changes in accounting policies, estimates, and restatements: (ⅰ) Changes in accounting policies due to the revision of accounting standards: None (ⅱ) Changes in accounting policies other than (ⅰ): None (ⅲ) Changes in accounting estimates: None (ⅳ) Restatements: None (4) Number of shares issued (common stock) (ⅰ) Number of shares issued (including treasury shares): (ⅱ) Number of treasury shares: (ⅲ) Average number of shares issued and outstanding in each fiscal year: Implementation status of audit procedure: Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None Statement on the proper use of earnings forecasts and other information: The quarterly financial summary attached to the Review Report will be disclosed after the completion of the review by certified public accountants or an audit firm. The scheduled disclosure date is August 6, 2026.
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Financial Summary Daiwa Securities Group Inc. 1. Overview of operating results, etc. ·············································································································· 2 (1) Overview of operating results ················································································································· 2 (2) Overview of financial position ················································································································ 6 2. Quarterly consolidated financial statements and main notes ················································································· 7 (1) Quarterly consolidated balance sheets ········································································································ 7 (2) Quarterly consolidated statements of income and consolidated statements of comprehensive income ····························· 10 (3) Notes to quarterly consolidated financial statements ······················································································· 13 (Basis for preparation of quarterly consolidated financial statements) ··································································· 13 (Segment information) ·························································································································· 14 (Significant changes in amounts of shareholders’ equity) ·················································································· 16 (Going concern assumption) ··················································································································· 16 (Notes to quarterly consolidated statements of cash flows) ················································································ 16 (Notes to significant subsequent events) ······································································································ 17 3. Supplementary information ······················································································································· 19 (1) Quarterly transition of consolidated statements of income ················································································ 19 (Accompanying materials) Contents (Note) Presentation materials (PDF version) of the financial results briefing are available at our website. URL: https://www.daiwa-grp.jp/english/ir/presentation/index.html - 1 -
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Financial Summary Daiwa Securities Group Inc. 1. Overview of operating results, etc. (1) Overview of operating results (i) Status of overall business For the three months ended June 30, 2026, operating revenue increased by 33.1% year on year to 434.3 billion yen, and net operating revenue increased by 42.0% to 220.3 billion yen. Commission received increased by 42.9% to 143.4 billion yen. Brokerage commission increased by 65.3% to 34.9 billion yen due to an increase in stock trading. Commission for underwriting, secondary distribution, and solicitation for selling and others for professional investors increased by 91.8% to 17.0 billion yen mainly due to large underwriting transactions. Net trading income increased by 48.9% to 33.2 billion yen mainly due to an increase in equity revenue. Net financial income increased by 23.9% to 24.5 billion yen mainly due to an increase in bond interest income. Selling, general and administrative expenses increased by 20.0% to 142.8 billion yen. Trading related expenses increased by 22.9% to 28.8 billion yen mainly due to an increase in commission expenses, and personnel expenses increased by 23.1% to 71.6 billion yen mainly due to an increase in performance-linked bonuses. As a result of the above, ordinary income increased by 101.5% to 88.0 billion yen. After adding extraordinary income to this figure and deducting extraordinary losses, income taxes and profit attributable to non-controlling interests, profit attributable to owners of parent increased by 80.6% year on year to 56.4 billion yen. - 2 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Net operating revenue Ordinary income (loss) Three months ended June 30, 2025 Three months ended June 30, 2026 Year-on-year increase (decrease) Composi- tion ratio Three months ended June 30, 2025 Three months ended June 30, 2026 Year-on-year increase (decrease) Composi- tion ratio Wealth Management Division 62,905 88,230 40.3% 40.0% 19,734 37,274 88.9% 41.3% Asset Management Division 28,213 40,928 45.1% 18.6% 14,772 30,362 105.5% 33.6% Securities Asset Management 15,192 21,271 40.0% 9.7% 7,517 15,709 109.0% 17.4% Real Estate Asset Management 9,665 13,327 37.9% 6.0% 6,935 9,837 41.8% 10.9% Alternative Asset Management 3,355 6,329 88.6% 2.9% 318 4,815 15.1 times 5.3% Global Markets & Investment Banking Division 49,827 76,512 53.6% 34.7% 5,001 22,710 354.0% 25.1% Global Markets 32,554 53,854 65.4% 24.4% 2,639 18,198 589.5% 20.1% Global Investment Banking 17,272 22,658 31.2% 10.3% 903 3,273 262.4% 3.6% Others, adjustments, etc. 14,304 14,727 － 6.7% 4,207 (2,257) － － Consolidated total 155,252 220,399 42.0% 100.0% 43,716 88,089 101.5% 100.0% (ii) Status by category described in segment information The status of net operating revenue and ordinary income analyzed by segment is as follows. (Note) The composition ratio of ordinary income (loss) displays a percentage of the ordinary income of each segment in the consolidated total ordinary income of segments recording ordinary income in the three months ended June 30, 2026. - 3 -
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Financial Summary Daiwa Securities Group Inc. Wealth Management Division: The main sources of earnings of the Wealth Management Division are commissions on products and services related to asset management for individual investors and unlisted companies in Japan, and profit margin that Daiwa Next Bank obtained from the management of procured funds raised through acceptance of deposits, etc. Factors that may have a major impact on operating results include changes in domestic and overseas financial markets and economic conditions that affect investment trends, as well as the development and underwriting status of products to address customer needs, and the type of sales strategies employed. For the three months ended June 30, 2026, sales of a wide range of products expanded due to intensifying market investment activities and the deepening of total asset consulting. Wrap-related revenue remained at a high level, and contract AUM reached a record high of 6,765.0 billion yen. The balance of deposits (including negotiable certificates of deposit) at Daiwa Next Bank as of June 30, 2026 increased by 4.8% from the end of the previous fiscal year to 5,308.5 billion yen, and the number of bank accounts increased by 3.9% to 2.37 million. As a result, net operating revenue in the Wealth Management Division for the three months ended June 30, 2026 increased by 40.3% year on year to 88.2 billion yen, and ordinary income increased by 88.9% to 37.2 billion yen. Asset Management Division: Asset Management Division is comprised of Securities Asset Management, Real Estate Asset Management and Alternative Asset Management. The main sources of earnings of Securities Asset Management are the management fees for structuring and managing investment trusts from the Company’s consolidated subsidiary Daiwa Asset Management. In addition, the profit or loss of Sumitomo Mitsui DS Asset Management Company, Limited and Global X Management Company LLC, both equity method-affiliates, are recorded in ordinary income according to the Company’s ownership ratio. Factors that may have a major impact on operating results include the fluctuation in customer demand for investment trust and investment advisory services caused by the market conditions, the investment performance of the fund relative to market conditions and the appeal of the products themselves such as the development of products with themes that capture the interest of customers. Securities Asset Management had an increase in both revenue and profit. At Daiwa Asset Management, the balance of assets under management reached 50.4 trillion yen, with a net increase in funds and rise in the stock market contributing to the result. As a result, net operating revenue for the three months ended June 30, 2026 increased by 40.0% year on year to 21.2 billion yen, and ordinary income increased by 109.0% to 15.7 billion yen. The main sources of earnings of Real Estate Asset Management are real estate investment income from the Company’s consolidated subsidiaries Daiwa Real Estate Asset Management, Daiwa Securities Realty, Daiwa Office Investment Corporation, and Samty Residential Investment Corporation. In addition, the profit or loss of the Company’s equity-method affiliates, Song Holdings G.K. (the parent company of Samty Holdings), Samty Asset Management, and Daiwa Securities Living Investment Corporation, are recorded in ordinary income according to the Company’s ownership ratio. Factors that may have a major impact on operating results include trends in the domestic real estate sales market and rental supply and demand. Real Estate Asset Management had an increase in both revenue and profit. The combined balance of assets under management of Daiwa Real Estate Asset Management and Samty Residential Investment Corporation increased by 0.7% from the end of the previous fiscal year to 1,810.6 billion yen. As a result, net operating revenue for the three months ended June 30, 2026 increased by 37.9% year on year to 13.3 billion yen, and ordinary income increased by 41.8% to 9.8 billion yen. The main sources of earnings of Alternative Asset Management are gains on sale from initial public offering (IPO) and M&A transactions and capital gains from investment partnerships of the Company’s consolidated subsidiaries Daiwa Corporate Investment, Daiwa PI Partners and Daiwa Energy & Infrastructure, and income gains including management fees and contingency fees received from funds based on contracts, dividends on stocks, and electricity sales income. Factors that may have a major impact on operating results include stock market and IPO market trends, changes in economic conditions that could affect values of invested companies, and liquidity of positions of held securities and investment assets. - 4 -
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Financial Summary Daiwa Securities Group Inc. Alternative Asset Management had an increase in profit. Daiwa Corporate Investment secured earnings from the gains on sale of investees, while contributing to investment in domestic and overseas growth companies and listing support. In addition, Daiwa PI Partners invested in monetary claims, real estate loans and equity, and loans to corporations in Japan and overseas in addition to proceeding with collection of existing projects, and Daiwa Energy & Infrastructure recorded income and capital gains while executing investments that contribute to the Sustainable Development Goals (SDGs). As a result ordinary income for the three months ended June 30, 2026 increased 15.1-fold year on year to 4.8 billion yen. As a result, net operating revenue in the Asset Management Division for the three months ended June 30, 2026 increased by 45.1% year on year to 40.9 billion yen, and ordinary income increased by 105.5% to 30.3 billion yen. Global Markets & Investment Banking Division: Global Markets & Investment Banking Division is comprised of Global Markets, which conducts sales and trading of securities targeted at institutional investors, etc. and Global Investment Banking, which conducts underwriting of securities issued by business corporations and financial corporations, etc. and M&A advisory services. The main sources of earnings of Global Markets are trading commissions from the buying and selling of marketable securities for institutional investors and trading income. Changing market trends with geopolitical risks and international economic conditions, etc. and the associated change in customer flows are factors that may have a major impact on operating results. Global Markets had an increase in both revenue and profit. Equity revenue increased mainly due to an increase in customer flows on the back of a favorable market for equities. Fixed income revenue increased due to an increase in customer flows and successful position management. As a result, net operating revenue for the three months ended June 30, 2026 increased by 65.4% year on year to 53.8 billion yen, and ordinary income increased by 589.5% to 18.1 billion yen. The main sources of earnings of Global Investment Banking are underwriting and secondary distribution commissions from underwriting business and M&A commissions from M&A advisory services. In addition to the domestic and overseas economic conditions that affect client companies’ decisions on fundraising methods and M&A demand, whether or not the Group can capture corporate demand and secure projects is a factor that has a major impact on operating results. Global Investment Banking had an increase in both revenue and profit. Underwriting and secondary distribution commissions increased due to acquiring multiple lead underwriter mandates in both equity and bond offerings. In the M&A business, many transactions were executed, leading to increased revenue. As a result, net operating revenue for the three months ended June 30, 2026 increased by 31.2% year on year to 22.6 billion yen, and ordinary income increased by 262.4% to 3.2 billion yen. As a result, net operating revenue in the Global Markets & Investment Banking Division for the three months ended June 30, 2026 increased by 53.6% year on year to 76.5 billion yen, and ordinary income increased by 354.0% to 22.7 billion yen. Others: Other business includes the research and consulting business and system operations by Daiwa Institute of Research. Daiwa Institute of Research contributed to the earnings of the Group by steadily advancing the development of the Group’s systems as well as strengthening relationships with customers through high-value-added solution proposals, in addition to being involved in system development projects for large-scale customers. For the three months ended June 30, 2026, net operating revenue related to others, adjustments, etc. was 14.7 billion yen (14.3 billion yen for the three months ended June 30, 2025), and ordinary loss was 2.2 billion yen (ordinary income of 4.2 billion yen for the three months ended June 30, 2025). - 5 -
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Financial Summary Daiwa Securities Group Inc. (2) Overview of financial position <Assets> Total assets as of June 30, 2026 increased by 1,789.6 billion yen (4.7%) from the end of the previous fiscal year to 39,867.2 billion yen. The breakdown shows that current assets increased by 1,740.5 billion yen (4.8%) to 37,960.1 billion yen, including an increase in cash and deposits of 1,086.5 billion yen (28.7%) to 4,876.7 billion yen, an increase in cash segregated as deposits of 331.4 billion yen (59.2%) to 891.5 billion yen, an increase in trading products of 1,206.7 billion yen (9.7%) to 13,598.4 billion yen, and a decrease in loans secured by securities of 804.9 billion yen (6.6%) to 11,347.7 billion yen. Non-current assets increased by 49.0 billion yen (2.6%) to 1,907.1 billion yen. <Liabilities and net assets> Total liabilities increased by 1,758.0 billion yen (4.9%) from the end of the previous fiscal year to 37,789.8 billion yen. The breakdown shows that current liabilities increased by 1,560.0 billion yen (4.7%) to 34,539.9 billion yen, including an increase in trading products of 639.3 billion yen (7.3%) to 9,400.0 billion yen, a decrease in borrowings secured by securities of 889.8 billion yen (6.4%) to 12,918.5 billion yen, an increase in deposits for the banking business of 249.4 billion yen (4.9%) to 5,291.4 billion yen, an increase in deposits received of 727.8 billion yen (110.3%) to 1,387.4 billion yen, and an increase in short-term borrowings of 577.6 billion yen (28.4%) to 2,611.5 billion yen. Non-current liabilities increased by 197.7 billion yen (6.5%) to 3,241.4 billion yen, including an increase in bonds payable of 54.8 billion yen (5.3%) to 1,085.8 billion yen, and an increase in long-term borrowings of 132.6 billion yen (7.2%) to 1,983.3 billion yen. Total net assets increased by 31.5 billion yen (1.5%) to 2,077.3 billion yen. Total share capital and capital surplus was 513.9 billion yen. Retained earnings increased by 7.9 billion yen (0.7%) to 1,129.3 billion yen, mainly due to the recording of 56.4 billion yen in profit attributable to owners of parent as well as the payment of 48.4 billion yen in dividends. Deduction for treasury shares decreased by 1.7 billion yen (1.2%) to 147.8 billion yen, valuation difference on available-for-sale securities increased by 1.5 billion yen (2.0%) to 81.8 billion yen, foreign currency translation adjustment increased by 10.7 billion yen (6.3%) to 180.6 billion yen, and non-controlling interests decreased by 1.5 billion yen (0.6%) to 274.8 billion yen. - 6 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen As of Assets March 31, 2026 June 30, 2026 Current assets: Cash and deposits 3,790,154 4,876,722 Cash segregated as deposits 560,091 891,511 Notes and accounts receivable - trade, and contract assets 38,211 36,734 Securities 2,140,789 2,134,391 Trading products: 12,391,655 13,598,424 Trading securities and other 8,005,002 8,604,939 Derivatives 4,386,652 4,993,484 Private equity and other investments 123,170 118,737 Allowance for investment loss (105) (105) Operating loans receivable 3,610,598 3,456,206 Work in process 861 1,181 Margin transaction assets: 308,051 293,204 Loans on margin transactions 171,384 207,393 Cash collateral pledged for securities borrowing on margin transactions 136,667 85,811 Loans secured by securities: 12,152,689 11,347,776 Cash collateral pledged for securities borrowed 9,899,110 10,253,628 Securities purchased under resale agreements 2,253,578 1,094,147 Advances paid 48,056 55,429 Short-term loans receivable 654 654 Accrued income 126,786 127,442 Other current assets 942,135 1,036,265 Allowance for doubtful accounts (14,254) (14,437) Total current assets 36,219,548 37,960,139 Non-current assets: Property, plant and equipment 977,957 1,003,599 Intangible assets: 154,732 156,974 Goodwill 16,101 15,375 Other 138,631 141,598 Investments and other assets: 725,408 746,551 Investment securities 673,079 693,678 Long-term loans receivable 7,851 7,889 Long-term guarantee deposits 16,117 16,770 Deferred tax assets 7,370 6,248 Other 24,596 25,569 Allowance for doubtful accounts (3,606) (3,604) Total non-current assets 1,858,097 1,907,125 Total assets 38,077,646 39,867,264 2. Quarterly consolidated financial statements and main notes (1) Quarterly consolidated balance sheets - 7 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen As of Liabilities March 31, 2026 June 30, 2026 Current liabilities: Notes and accounts payable - trade 8,131 8,165 Trading products: 8,760,742 9,400,045 Trading securities and other 3,698,556 3,298,484 Derivatives 5,062,186 6,101,561 Trade date accrual 970,944 1,470,592 Margin transaction liabilities: 43,399 47,616 Borrowings on margin transactions 4,904 5,683 Cash received for securities lending on margin transactions 38,494 41,932 Borrowings secured by securities: 13,808,404 12,918,562 Cash collateral received for securities lent 9,379,709 9,972,695 Securities sold under repurchase agreements 4,428,695 2,945,866 Deposits for the banking business 5,042,025 5,291,451 Deposits received 659,605 1,387,413 Guarantee deposits received 495,268 536,678 Short-term borrowings 2,033,926 2,611,592 Commercial papers 396,500 234,900 Current portion of bonds payable 459,397 388,533 Income taxes payable 51,377 31,452 Provision for bonuses 56,580 27,362 Other current liabilities 193,597 185,565 Total current liabilities 32,979,901 34,539,932 Non-current liabilities: Bonds payable 1,031,024 1,085,887 Long-term borrowings 1,850,739 1,983,396 Deferred tax liabilities 60,399 66,672 Retirement benefit liability 43,978 44,284 Provision for loss on litigation 362 386 Other non-current liabilities 57,154 60,816 Total non-current liabilities 3,043,658 3,241,443 Reserves under special laws: Reserve for financial instruments transaction liabilities 8,276 8,510 Total reserves under special laws 8,276 8,510 Total liabilities 36,031,836 37,789,886 - 8 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen As of Net assets March 31, 2026 June 30, 2026 Shareholders’ equity: Share capital 247,397 247,397 Capital surplus 266,538 266,549 Retained earnings 1,121,416 1,129,333 Treasury shares (149,544) (147,809) Deposits for subscriptions of treasury shares 27 80 Total shareholders’ equity 1,485,835 1,495,551 Accumulated other comprehensive income: Valuation difference on available-for-sale securities 80,264 81,843 Deferred gains or losses on hedges 27,211 38,452 Foreign currency translation adjustment 169,918 180,628 Remeasurements of defined benefit plans 340 298 Total accumulated other comprehensive income 277,734 301,223 Share acquisition rights 5,821 5,735 Non-controlling interests 276,419 274,868 Total net assets 2,045,809 2,077,378 Total liabilities and net assets 38,077,646 39,867,264 - 9 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Three Months Ended June 30, 2025 June 30, 2026 Operating revenue: Commission received: 100,398 143,423 Brokerage commission 21,153 34,975 Commission for underwriting, secondary distribution, and solicitation for selling and others for professional investors 8,901 17,072 Fees for offering, secondary distribution, and solicitation for selling and others for professional investors 4,761 9,276 Other commission received 65,581 82,098 Net trading income 22,310 33,213 Net gain on private equity and other investments 1,797 4,107 Financial revenue 160,616 175,588 Other operating revenue 41,277 78,031 Total operating revenue 326,400 434,364 Financial expenses 140,821 151,059 Other operating expenses 30,326 62,905 Net operating revenue 155,252 220,399 Selling, general and administrative expenses: Trading related expenses 23,496 28,866 Personnel expenses 58,163 71,610 Real estate expenses 11,110 12,202 Office expenses 8,316 9,844 Depreciation 8,271 9,495 Taxes and dues 3,930 5,143 Provision of allowance for doubtful accounts 109 20 Other 5,674 5,703 Total selling, general and administrative expenses 119,074 142,887 Operating income 36,177 77,512 Non-operating income: Dividend income 1,028 1,243 Share of profit of entities accounted for using the equity method 6,235 6,427 Foreign exchange gains － 89 Gain on investments in investment partnerships 2,066 810 Other 1,379 4,211 Total non-operating income 10,710 12,783 Non-operating expenses: Interest expenses 899 1,241 Foreign exchange losses 1,308 － Bond issuance costs 191 95 Other 773 867 Total non-operating expenses 3,172 2,205 Ordinary income 43,716 88,089 (2) Quarterly consolidated statements of income and consolidated statements of comprehensive income Quarterly consolidated statements of income - 10 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Three Months Ended June 30, 2025 June 30, 2026 Extraordinary income: Gain on sale of non-current assets 136 － Gain on sale of investment securities 1,535 1,364 Gain on sale of shares of subsidiaries and associates － 17 Gain on reversal of share acquisition rights 134 121 Total extraordinary income 1,806 1,503 Extraordinary losses: Loss on sale and retirement of non-current assets 34 3 Impairment losses － 751 Loss on sale of investment securities 5 － Loss on valuation of investment securities 26 136 Loss on change in equity 37 73 Provision of reserve for financial instruments transaction liabilities 3 234 Compensation losses 620 75 Total extraordinary losses 728 1,275 Income before income taxes 44,794 88,317 Income taxes - current 3,853 26,232 Income taxes - deferred 6,901 765 Total income taxes 10,754 26,998 Profit 34,039 61,319 Profit attributable to non-controlling interests 2,802 4,904 Profit attributable to owners of parent 31,237 56,414 - 11 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Three Months Ended June 30, 2025 June 30, 2026 Profit 34,039 61,319 Other comprehensive income: Valuation difference on available-for-sale securities 10,877 (394) Deferred gains or losses on hedges (1,332) 10,944 Foreign currency translation adjustment (6,420) 10,403 Share of other comprehensive income of entities accounted for using the equity method (4,019) 2,761 Total other comprehensive income (895) 23,715 Comprehensive income 33,144 85,035 Comprehensive income attributable to: Comprehensive income attributable to owners of parent 30,225 79,903 Comprehensive income attributable to non-controlling interests 2,919 5,131 Quarterly consolidated statements of comprehensive income - 12 -
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Financial Summary Daiwa Securities Group Inc. (3) Notes to quarterly consolidated financial statements (Basis for preparation of quarterly consolidated financial statements) The Company’s quarterly consolidated financial statements are prepared in accordance with Article 4, paragraph 1 of the standard for preparation of the quarterly financial statements established by the Tokyo Stock Exchange, Inc. and Nagoya Stock Exchange, Inc. and accounting principles generally accepted in Japan for interim consolidated financial reporting (provided, however, the company applies the practice of omitting the descriptions provided for in Article 4, paragraph 2 of the aforementioned standard for preparation of the quarterly financial statements). - 13 -
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Financial Summary Daiwa Securities Group Inc. (Millions of yen) Reportable segments Others (Note1) TotalWealth Management Division Asset Management Division Global Markets & Investment Banking Division Total Revenue from contracts with customers 42,107 46,082 32,059 120,248 9,474 129,723 Commission received 41,461 26,463 32,059 99,984 414 100,398 Other operating revenue (external customers) 645 19,619 － 20,264 9,060 29,325 Net trading income and other 7,685 2,086 17,075 26,847 (65) 26,781 Lease revenue based on rental contracts － 10,422 － 10,422 1,530 11,952 Others (Note2) 9,757 (25,011) (9) (15,263) (6,476) (21,740) Net operating revenue Net operating revenue from external customers 59,550 33,579 49,125 142,255 4,462 146,717 Intersegment net operating revenue and transfers 3,355 (5,365) 702 (1,307) 6,270 4,962 Total 62,905 28,213 49,827 140,947 10,732 151,680 Segment income (Ordinary income) 19,734 14,772 5,001 39,508 1,271 40,779 (Millions of yen) Ordinary income Amount Reportable segments total 39,508 Income from “Others” 1,271 Elimination between segments 6 Adjustments for unrealized gains or losses (577) Other adjustments 3,507 Ordinary income on the quarterly consolidated statements of income 43,716 (Segment information) Segment information Three months ended June 30, 2025 1 Information about net operating revenue and ordinary income (loss) by reportable segment, and information on disaggregation of revenue (Notes) 1 “Others” are the business segments which are not included in the reportable segments, and include consolidation and management of subsidiaries, information service, back-office service, and real-estate rental, etc. 2 “Others” of Wealth Management Division, Asset Management Division, and Others include “Commission fees” which constitute part of “Net operating revenue.” 3 “Net operating revenue” mainly consists of “Operating revenue,” “Financial expenses,” “Other operating expenses,” and “Commission fees (Selling, general and administrative expenses).” 2 Difference between total amount of ordinary income (loss) of the reportable segments and the amount reported in the quarterly consolidated statements of income, and the major components thereof 3 Information about impairment losses on non-current assets, goodwill, etc. by reportable segment Not applicable. - 14 -
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Financial Summary Daiwa Securities Group Inc. (Millions of yen) Reportable segments Others (Note1) TotalWealth Management Division Asset Management Division Global Markets & Investment Banking Division Total Revenue from contracts with customers 68,569 82,497 47,556 198,623 10,384 209,008 Commission received 60,257 35,383 47,556 143,197 225 143,423 Other operating revenue (external customers) 8,311 47,113 － 55,425 10,159 65,584 Net trading income and other 9,834 4,325 28,211 42,371 89 42,460 Lease revenue based on rental contracts － 11,115 － 11,115 1,360 12,475 Others (Note2) 4,029 (50,487) (10) (46,468) (9,054) (55,523) Net operating revenue Net operating revenue from external customers 82,432 47,450 75,757 205,640 2,779 208,420 Intersegment net operating revenue and transfers 5,798 (6,522) 754 31 5,818 5,849 Total 88,230 40,928 76,512 205,671 8,598 214,270 Segment income (loss) (Ordinary income (loss)) 37,274 30,362 22,710 90,347 (1,679) 88,668 (Millions of yen) Ordinary income Amount Reportable segments total 90,347 Loss from “Others” (1,679) Adjustments for unrealized gains or losses (986) Other adjustments 408 Ordinary income on the quarterly consolidated statements of income 88,089 Three months ended June 30, 2026 1 Information about net operating revenue and ordinary income (loss) by reportable segment, and information on disaggregation of revenue (Notes) 1 “Others” are the business segments which are not included in the reportable segments, and include consolidation and management of subsidiaries, information service, back-office service, and real-estate rental, etc. 2 “Others” of Wealth Management Division, Asset Management Division, and Others include “Commission fees” which constitute part of “Net operating revenue.” 3 “Net operating revenue” mainly consists of “Operating revenue,” “Financial expenses,” “Other operating expenses,” and “Commission fees (Selling, general and administrative expenses).” 2 Difference between total amount of ordinary income (loss) of the reportable segments and the amount reported in the quarterly consolidated statements of income, and the major components thereof 3 Information about impairment losses on non-current assets, goodwill, etc. by reportable segment (Significant impairment losses on non-current assets) We recorded impairment losses on non-current assets of 352 million yen in the Asset Management Division and 399 million yen in Others. - 15 -
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Financial Summary Daiwa Securities Group Inc. (Significant changes in amounts of shareholders’ equity) Not applicable. (Going concern assumption) Not applicable. Millions of yen Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 10,801 12,293 Amortization of goodwill 363 408 (Notes to quarterly consolidated statements of cash flows) Quarterly consolidated statements of cash flows for the three months ended June 30, 2026 are not prepared. Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the three months ended June 30, 2026 are as follows. - 16 -
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Financial Summary Daiwa Securities Group Inc. (Notes to significant subsequent events) (Business combination by share acquisition) The Company resolved that Daiwa Next Bank, Ltd. (hereinafter “Daiwa Next Bank”), a wholly-owned subsidiary of the Company, will acquire all issued shares of ORIX Bank Corporation (hereinafter “ORIX Bank”) and thereby make ORIX Bank a wholly-owned subsidiary of Daiwa Next Bank (hereinafter the “Share Acquisition” or the “Subsidiary Acquisition”). On April 27, 2026, Daiwa Next Bank entered into a share transfer agreement regarding the Share Acquisition (hereinafter the “Agreement”) with ORIX Corporation, the wholly owning parent company of ORIX Bank. The Share Acquisition was completed on August 3, 2026. 1. Overview of business combination (1) Name and business description of the acquired company Name of the acquired company : ORIX Bank Corporation Business description : Banking business (2) Major reasons for the business combination The Group has continuously worked to expand stable earnings and enhance its business portfolio with the aim of establishing a robust earnings base that is less susceptible to changes in the external environment. Under its Medium- Term Management Plan, “Passion for the Best” 2026, the Group has set forth “maximizing customer asset value” as its basic management policy and has focused on stabilizing consolidated business performance by promoting high-quality consulting and the provision of optimal solutions based on a deep understanding of each customer’s needs. As Japan’s economy steadily emerges from the long period of deflation and transitions to a “world with interest rates,” demand has risen to an unprecedented level for comprehensive consulting tailored to each customer’s life stage and financial position, including both assets and liabilities. Moreover, in order to respond accurately to these changing needs, the fundamental expansion and enhancement of banking functions, including lending and trust services, have become indispensable and are important management issues for the Group. Since commencing operations in 2011 as a gateway bank to the securities business, Daiwa Next Bank has steadily expanded its earnings based on a low-cost operating structure and a market-based investment model. However, as indicated by its current account balance of approximately 2 trillion yen at the Bank of Japan, Daiwa Next Bank has not been able to efficiently deploy deposits entrusted by customers, and the diversification and sophistication of its fund management methods have become urgent issues. In addition, although demand has been increasing at Daiwa Securities Co. Ltd. for lending and trust-related services, particularly for securities-backed loans, real estate-backed loans, and inheritance-related services, the current functions of Daiwa Next Bank are insufficient to meet these needs. Meanwhile, ORIX Bank has steadily expanded its earnings base through its core businesses of real estate-related lending and trust-related services. However, in order to achieve further growth, it is important to strengthen and further promote the stability of the funding base by acquiring highly sticky deposits. In light of this business environment and these management issues, and after repeated discussions between the Group and the ORIX Group, the parties concluded that integrating Daiwa Next Bank and ORIX Bank—each of which possesses different strengths and management resources—would make it possible to further enhance their ability to provide solutions to customers’ issues relating to both assets and liabilities, while significantly increasing the corporate value of the two banks. Accordingly, Daiwa Next Bank has decided to acquire ORIX Bank as its subsidiary. Through the Subsidiary Acquisition, the Group will organically combine ORIX Bank’s cultivated strengths in lending and trust functions, as well as its highly specialized personnel with the Group’s strong customer base and sales platform, which underpin its deposit-gathering capabilities. In doing so, the Group aims to deepen its consulting capabilities with respect to customers’ financial positions, including both assets and liabilities, while also establishing a sustainable growth model based on a virtuous cycle of deposit growth and loan growth. Furthermore, in the future, the Group will pursue maximum synergies through functional integration by way of a merger of the two banks. Through these initiatives, the Group aims to achieve sustained expansion of stable earnings and improve its consolidated business performance. - 17 -
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Financial Summary Daiwa Securities Group Inc. Type of consideration Cash 370.0 billion yen* Acquisition cost 370.0 billion yen* (3) Date of business combination August 3, 2026 (4) Legal format of business combination Share acquisition with cash consideration (5) Company name after business combination No changes (6) Ratio of voting rights acquired 100% (7) Primary grounds for determining the acquiring company Daiwa Next Bank, a wholly owned subsidiary of the Company, acquired the shares for cash as consideration. 2. Acquisition cost of acquired company and type of consideration *The final acquisition price will be determined after price adjustments and other procedures set forth in the share transfer agreement. 3. Details and amount of acquisition related expenses Not yet determined. 4. Amount of goodwill, reason for recognition, and method and period of amortization Not yet determined. 5. Amount of assets accepted and liabilities assumed at the business combination date and the breakdown of major items Not yet determined. - 18 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Three Months Ended June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 Operating revenue: Commission received: 100,398 118,300 128,579 131,203 143,423 Brokerage commission 21,153 26,968 29,578 31,983 34,975 Commission for underwriting, secondary distribution, and solicitation for selling and others for professional investors 8,901 10,831 11,047 9,158 17,072 Fees for offering, secondary distribution, and solicitation for selling and others for professional investors 4,761 6,275 7,741 7,731 9,276 Other commission received 65,581 74,224 80,211 82,330 82,098 Net trading income 22,310 23,375 28,249 31,919 33,213 Net gain on private equity and other investments 1,797 (1,164) 3,921 (2,915) 4,107 Financial revenue 160,616 175,175 177,115 177,564 175,588 Other operating revenue 41,277 59,662 35,996 54,597 78,031 Total operating revenue 326,400 375,349 373,862 392,369 434,364 Financial expenses 140,821 155,261 152,824 148,959 151,059 Other operating expenses 30,326 47,459 26,392 45,510 62,905 Net operating revenue 155,252 172,628 194,646 197,899 220,399 Selling, general and administrative expenses: Trading related expenses 23,496 24,798 25,926 25,944 28,866 Personnel expenses 58,163 60,606 67,751 69,675 71,610 Real estate expenses 11,110 11,320 11,893 12,921 12,202 Office expenses 8,316 8,101 8,822 9,807 9,844 Depreciation 8,271 8,292 8,645 8,770 9,495 Taxes and dues 3,930 4,232 4,058 4,456 5,143 Provision of allowance for doubtful accounts 109 30 (11) 52 20 Other 5,674 5,402 5,797 6,722 5,703 Total selling, general and administrative expenses 119,074 122,785 132,882 138,351 142,887 Operating income 36,177 49,842 61,764 59,548 77,512 Non-operating income 10,710 6,846 9,528 10,625 12,783 Non-operating expenses 3,172 2,497 1,733 3,130 2,205 Ordinary income 43,716 54,192 69,559 67,042 88,089 Extraordinary income 1,806 23,250 451 9,963 1,503 Extraordinary losses 728 1,811 249 3,265 1,275 Income before income taxes 44,794 75,631 69,760 73,741 88,317 Income taxes - current 3,853 27,163 17,448 26,735 26,232 Income taxes - deferred 6,901 (3,958) 1,514 (5,963) 765 Total income taxes 10,754 23,205 18,963 20,771 26,998 Profit 34,039 52,426 50,797 52,969 61,319 Profit attributable to non-controlling interests 2,802 4,699 4,334 3,114 4,904 Profit attributable to owners of parent 31,237 47,726 46,462 49,854 56,414 3. Supplementary information (1) Quarterly transition of consolidated statements of income - 19 -