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 of filing semi-annual securities report: November 12, 2026 Scheduled date to commence dividend payments: December 1, 2026 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 865,454 23.3% 444,301 35.5% 148,427 72.5% 166,352 69.9% FY 2025 701,750 1.7% 327,880 5.7% 86,020 12.0% 97,908 (11.5)% FY 2026: 125,342 million yen , 18.4% ; FY 2025: 105,873 million yen , 58.3% Profit attributable to owners of parent Net income per share Diluted net income per share FY 2026 107,846 36.6% 77.57 Yen 76.32 Yen FY 2025 78,964 1.5% 56.44 Yen 55.68 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 Sep. 30, 2026 40,407,118 2,119,547 4.6 % 1,318.82 Yen As of Mar. 31, 2026 38,077,646 2,045,809 4.6 % 1,272.72 Yen As of Sep. 30, 2026: 1,841,041 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) － 39.00 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) October 30, 2026 Financial Summary (Consolidated) For the six months period ended September 30, 2026 <Under Japanese GAAP> (Figures less than one million yen are rounded down) 1. Consolidated financial results (April 1, 2026 to September 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 Sep. 30, 2026 : 1,569,378,772 ; As of Mar. 31, 2026 : 1,569,378,772 As of Sep. 30, 2026 : 173,469,332 ; As of Mar. 31, 2026 : 183,731,624 As of Sep. 30, 2026 : 1,390,295,704 ; As of Sep. 30, 2025 : 1,399,140,668 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: Yes Newly included companies: 1 company (name) ORIX Bank Corporation Excluded companies: None (Note) For details, please see “1. Semi-annual consolidated financial statements and main notes, (3) Notes to semi-annual consolidated financial statements, (Notes on Significant Changes in the Scope of Consolidation)” on page 8. (2) Application of accounting methods which are exceptional for semi-annual 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 during the period: Implementation status of audit procedure: Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. Statement on the proper use of earnings forecasts and other information: Not applicable.
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Financial Summary Daiwa Securities Group Inc. 1. Semi-annual consolidated financial statements and main notes ············································································· 2 (1) Semi-annual consolidated balance sheets ···································································································· 2 (2) Semi-annual consolidated statements of income and Semi-annual consolidated statements of comprehensive income ·········· 5 (3) Notes to semi-annual consolidated financial statements········ ········ ········ ········ ················································· 8 (Significant changes in amounts of shareholders’ equity)··················································································· 8 (Going concern assumption) ···················································································································· 8 (Notes on Significant Changes in the Scope of Consolidation) ··········································································· 8 (Notes on Business Combinations) ············································································································ 9 2. Supplementary information ······················································································································· 11 (1) Quarterly transition of consolidated statements of income ················································································ 11 (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. Millions of yen As of Assets March 31, 2026 September 30, 2026 Current assets: Cash and deposits 3,790,154 4,720,787 Cash segregated as deposits 560,091 609,631 Notes and accounts receivable - trade, and contract assets 38,211 42,329 Securities 2,140,789 2,239,173 Trading products: 12,391,655 13,589,262 Trading securities and other 8,005,002 7,415,163 Derivatives 4,386,652 6,174,099 Private equity and other investments 123,170 99,942 Allowance for investment loss (105) (63) Operating loans receivable 3,610,598 5,536,901 Work in process 861 1,465 Margin transaction assets: 308,051 238,300 Loans on margin transactions 171,384 194,980 Cash collateral pledged for securities borrowing on margin transactions 136,667 43,319 Loans secured by securities: 12,152,689 9,927,472 Cash collateral pledged for securities borrowed 9,899,110 8,863,647 Securities purchased under resale agreements 2,253,578 1,063,825 Advances paid 48,056 74,500 Short-term loans receivable 654 706 Accrued income 126,786 136,419 Other current assets 942,135 1,149,416 Allowance for doubtful accounts (14,254) (16,863) Total current assets 36,219,548 38,349,383 Non-current assets: Property, plant and equipment 977,957 1,007,963 Intangible assets: 154,732 290,430 Goodwill 16,101 117,085 Other 138,631 173,344 Investments and other assets: 725,408 759,341 Investment securities 673,079 701,713 Long-term loans receivable 7,851 7,889 Long-term guarantee deposits 16,117 17,387 Deferred tax assets 7,370 7,576 Other 24,596 28,378 Allowance for doubtful accounts (3,606) (3,604) Total non-current assets 1,858,097 2,057,735 Total assets 38,077,646 40,407,118 1. Semi-annual consolidated financial statements and main notes (1) Semi-annual consolidated balance sheets - 2 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen As of Liabilities March 31, 2026 September 30, 2026 Current liabilities: Notes and accounts payable - trade 8,131 10,317 Trading products: 8,760,742 10,508,667 Trading securities and other 3,698,556 3,396,192 Derivatives 5,062,186 7,112,474 Trade date accrual 970,944 297,516 Margin transaction liabilities: 43,399 59,235 Borrowings on margin transactions 4,904 19,342 Cash received for securities lending on margin transactions 38,494 39,893 Borrowings secured by securities: 13,808,404 11,600,026 Cash collateral received for securities lent 9,379,709 9,346,112 Securities sold under repurchase agreements 4,428,695 2,253,914 Deposits for the banking business 5,042,025 7,502,412 Deposits received 659,605 1,122,637 Guarantee deposits received 495,268 611,874 Short-term borrowings 2,033,926 2,175,329 Commercial papers 396,500 424,120 Current portion of bonds payable 459,397 432,147 Income taxes payable 51,377 58,423 Provision for bonuses 56,580 48,806 Other current liabilities 193,597 244,144 Total current liabilities 32,979,901 35,095,660 Non-current liabilities: Bonds payable 1,031,024 1,128,175 Long-term borrowings 1,850,739 1,877,391 Deferred tax liabilities 60,399 70,199 Retirement benefit liability 43,978 44,415 Provision for loss on litigation 362 715 Other non-current liabilities 57,154 62,497 Total non-current liabilities 3,043,658 3,183,394 Reserves under special laws: Reserve for financial instruments transaction liabilities 8,276 8,516 Total reserves under special laws 8,276 8,516 Total liabilities 36,031,836 38,287,571 - 3 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen As of Net assets March 31, 2026 September 30, 2026 Shareholders’ equity: Share capital 247,397 247,397 Capital surplus 266,538 267,873 Retained earnings 1,121,416 1,180,671 Treasury shares (149,544) (141,191) Deposits for subscriptions of treasury shares 27 94 Total shareholders’ equity 1,485,835 1,554,845 Accumulated other comprehensive income: Valuation difference on available-for-sale securities 80,264 54,558 Deferred gains or losses on hedges 27,211 64,670 Foreign currency translation adjustment 169,918 166,710 Remeasurements of defined benefit plans 340 256 Total accumulated other comprehensive income 277,734 286,196 Share acquisition rights 5,821 5,499 Non-controlling interests 276,419 273,005 Total net assets 2,045,809 2,119,547 Total liabilities and net assets 38,077,646 40,407,118 - 4 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Six Months Ended September 30, 2025 September 30, 2026 Operating revenue: Commission received: 218,698 281,158 Brokerage commission 48,122 61,416 Commission for underwriting, secondary distribution, and solicitation for selling and others for professional investors 19,733 28,823 Fees for offering, secondary distribution, and solicitation for selling and others for professional investors 11,037 17,034 Other commission received 139,806 173,883 Net trading income 45,685 62,123 Net gain on private equity and other investments 633 5,367 Financial revenue 335,792 381,901 Other operating revenue 100,940 134,901 Total operating revenue 701,750 865,454 Financial expenses 296,083 317,217 Other operating expenses 77,786 103,935 Net operating revenue 327,880 444,301 Selling, general and administrative expenses: Trading related expenses 48,295 59,691 Personnel expenses 118,770 145,055 Real estate expenses 22,431 24,990 Office expenses 16,417 21,303 Depreciation 16,564 19,926 Taxes and dues 8,163 10,609 Provision of allowance for doubtful accounts 139 96 Other 11,077 14,200 Total selling, general and administrative expenses 241,859 295,873 Operating income 86,020 148,427 Non-operating income: Dividend income 2,388 3,111 Share of profit of entities accounted for using the equity method 8,502 12,837 Gain on investments in investment partnerships 4,278 2,544 Other 2,387 4,340 Total non-operating income 17,557 22,835 Non-operating expenses: Interest expenses 1,802 2,566 Foreign exchange losses 1,799 775 Bond issuance costs 219 249 Other 1,848 1,319 Total non-operating expenses 5,669 4,910 Ordinary income 97,908 166,352 (2) Semi-annual consolidated statements of income and Semi-annual consolidated statements of comprehensive income Semi-annual consolidated statements of income - 5 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Six Months Ended September 30, 2025 September 30, 2026 Extraordinary income: Gain on sale of non-current assets 22,793 － Gain on sale of investment securities 2,128 5,575 Gain on sale of shares of subsidiaries and associates － 17 Gain on reversal of share acquisition rights 134 121 Total extraordinary income 25,057 5,713 Extraordinary losses: Loss on sale and retirement of non-current assets 48 28 Impairment losses 41 751 Loss on sale of investment securities 5 － Loss on valuation of investment securities 26 281 Loss on sale of shares of subsidiaries and associates 1,410 － Loss on valuation of shares of subsidiaries and associates 23 － Loss on change in equity 37 83 Provision of reserve for financial instruments transaction liabilities 7 239 Compensation losses 938 146 Total extraordinary losses 2,539 1,531 Income before income taxes 120,426 170,535 Income taxes - current 31,017 58,851 Income taxes - deferred 2,942 (4,682) Total income taxes 33,959 54,168 Profit 86,466 116,366 Profit attributable to non-controlling interests 7,501 8,520 Profit attributable to owners of parent 78,964 107,846 - 6 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Six Months Ended September 30, 2025 September 30, 2026 Profit 86,466 116,366 Other comprehensive income: Valuation difference on available-for-sale securities 19,979 (27,251) Deferred gains or losses on hedges 1,117 36,258 Foreign currency translation adjustment 4,411 (3,977) Share of other comprehensive income of entities accounted for using the equity method (6,100) 3,946 Total other comprehensive income 19,407 8,975 Comprehensive income 105,873 125,342 Comprehensive income attributable to: Comprehensive income attributable to owners of parent 98,299 116,308 Comprehensive income attributable to non-controlling interests 7,574 9,033 Semi-annual consolidated statements of comprehensive income - 7 -
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Financial Summary Daiwa Securities Group Inc. (3) Notes to semi-annual consolidated financial statements (Significant changes in amounts of shareholders’ equity) Not applicable. (Going concern assumption) Not applicable. (Notes on Significant Changes in the Scope of Consolidation) Daiwa Next Bank, Ltd., a wholly-owned subsidiary of the Company, completed the acquisition of all issued shares of ORIX Bank Corporation (hereinafter “ORIX Bank”) on August 3, 2026. As a result, ORIX Bank is included in the scope of consolidation of the Company. In addition, ORIX Bank is included in the Company's specified subsidiaries. - 8 -
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Financial Summary Daiwa Securities Group Inc. (Notes on Business Combinations) (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. (3) Date of business combination August 3, 2026 (deemed acquisition date: July 1, 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. - 9 -
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Financial Summary Daiwa Securities Group Inc. Type of consideration Cash 385,185 million yen Acquisition cost 385,185 million yen 2. Period of the acquired company’s financial results included in the consolidated financial statements From July 1, 2026 to September 30, 2026 3. Acquisition cost of acquired company and type of consideration 4. Details and amount of major acquisition related expenses Advisory fees, etc. 133 million yen 5. Amount of goodwill, reason for recognition, and method and period of amortization (1) Amount of goodwill 103,450 million yen (2) Reason for recognition The goodwill is mainly attributable to expected future excess earnings from the acquired company's future business activities. (3) Amortization method and depreciation period Amortized on a straight-line basis over 20 years 6. Amounts of assets acquired and liabilities assumed at the business combination date and the breakdown of major items (1) Amounts of assets Total assets 3,294,593 million yen of which operating loans receivable 2,767,859 million yen (2) Amounts of liabilities Total liabilities 3,012,858 million yen of which deposits for the banking business 2,514,394 million yen 7. Amount allocated to intangible assets other than goodwill and breakdown by type and amortization periods (1) Amount allocated to intangible assets 24,382 million yen (2) Breakdown by type and amortization periods Contract-related intangible assets 11,485 million yen Amortization period: 13 years Business relationship intangible assets 11,403 million yen Amortization period: 21 years Core deposit intangible assets 1,494 million yen Amortization period: 3 years - 10 -
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Financial Summary Daiwa Securities Group Inc. Millions of yen Three Months Ended September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 Operating revenue: Commission received: 118,300 128,579 131,203 143,423 137,735 Brokerage commission 26,968 29,578 31,983 34,975 26,440 Commission for underwriting, secondary distribution, and solicitation for selling and others for professional investors 10,831 11,047 9,158 17,072 11,750 Fees for offering, secondary distribution, and solicitation for selling and others for professional investors 6,275 7,741 7,731 9,276 7,758 Other commission received 74,224 80,211 82,330 82,098 91,785 Net trading income 23,375 28,249 31,919 33,213 28,910 Net gain on private equity and other investments (1,164) 3,921 (2,915) 4,107 1,259 Financial revenue 175,175 177,115 177,564 175,588 206,313 Other operating revenue 59,662 35,996 54,597 78,031 56,870 Total operating revenue 375,349 373,862 392,369 434,364 431,090 Financial expenses 155,261 152,824 148,959 151,059 166,158 Other operating expenses 47,459 26,392 45,510 62,905 41,030 Net operating revenue 172,628 194,646 197,899 220,399 223,902 Selling, general and administrative expenses: Trading related expenses 24,798 25,926 25,944 28,866 30,824 Personnel expenses 60,606 67,751 69,675 71,610 73,445 Real estate expenses 11,320 11,893 12,921 12,202 12,788 Office expenses 8,101 8,822 9,807 9,844 11,458 Depreciation 8,292 8,645 8,770 9,495 10,430 Taxes and dues 4,232 4,058 4,456 5,143 5,465 Provision of allowance for doubtful accounts 30 (11) 52 20 76 Other 5,402 5,797 6,722 5,703 8,496 Total selling, general and administrative expenses 122,785 132,882 138,351 142,887 152,986 Operating income 49,842 61,764 59,548 77,512 70,915 Non-operating income 6,846 9,528 10,625 12,783 10,052 Non-operating expenses 2,497 1,733 3,130 2,205 2,705 Ordinary income 54,192 69,559 67,042 88,089 78,262 Extraordinary income 23,250 451 9,963 1,503 4,210 Extraordinary losses 1,811 249 3,265 1,275 256 Income before income taxes 75,631 69,760 73,741 88,317 82,217 Income taxes - current 27,163 17,448 26,735 26,232 32,618 Income taxes - deferred (3,958) 1,514 (5,963) 765 (5,448) Total income taxes 23,205 18,963 20,771 26,998 27,170 Profit 52,426 50,797 52,969 61,319 55,046 Profit attributable to non-controlling interests 4,699 4,334 3,114 4,904 3,615 Profit attributable to owners of parent 47,726 46,462 49,854 56,414 51,431 2. Supplementary information (1) Quarterly transition of consolidated statements of income - 11 -