Daiwa Securities Group Inc.

Basic Information

Stock Code
8601
Industry
Securities and Commodity Futures Trading
Category Detail
Securities
Prefecture
Tokyo
Establishment Year
April 1999
Listing Year
October 1961
Official Website
https://www.daiwa-grp.jp/
TSE Information
TSE Information
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Other Companies
Sumitomo Mitsui FG, Mizuho FG, Nomura, Okasan Securities Group, Marusan Securities, Toyo Securities, Tokai Tokyo Financial Holdings, Mito Securities, Traders Holdings, Kyokuto Securities, Iwai Cosmo Holdings, Aizawa Securities Group

Overview

Daiwa Securities Group Inc. is a Japanese financial holding company founded in 1943, holding the No. 2 position in the securities industry and providing a wide range of financial services across the group.

Current Situation

Daiwa Securities Group Inc. recorded consolidated net sales of approximately 1.2774 trillion yen and operating profit of approximately 153.7 billion yen for the fiscal year ending March 2024, maintaining a solid financial foundation. As the No. 2 securities firm, it serves a broad customer base from retail to wholesale, emphasizing the expansion of assets under custody. Centered on Daiwa Securities, it oversees a group of subsidiaries, expanding not only in securities but also in asset management and research businesses. In recent years, it has expanded operations into real estate management and online banking, and in 2024, it advanced capital and business alliances with Aozora Bank and Japan Post Insurance. It is proactive in sustainability and governance enhancement, maintains ongoing relations with the Financial Services Agency, and contributes to self-regulatory activities in the industry. While incorporating technological innovations, it aims to shift away from traditional fee-based businesses and establish new revenue sources. In the future, growth is expected through digitalization and strengthening overseas operations, advancing a medium- to long-term business diversification strategy.

Trivia

Interesting Facts

  • Boasts the No. 2 scale in Japan's securities industry after Nomura.
  • Pure holding company as the first listed holding company.
  • Head office located in Gran Tokyo North Tower at Tokyo Station.
  • Became the largest shareholder of Aozora Bank and developed capital and business alliance.
  • Group executives participate in the Financial Services Agency's Securities and Exchange Surveillance Commission.
  • Former president Shigeyoshi Suzuki served as chairman of the Japan Securities Dealers Association.
  • Launched online bank within the group to promote financial diversification.
  • Provides comprehensive financial services through diverse subsidiaries.
  • Focuses on digitalization while maintaining traditional holding company structure.
  • Prudent management with consolidated total assets exceeding 32 trillion yen.

Hidden Connections

  • Historical background from merger of former Fujimoto Securities and Nippon Trust Bank.
  • No capital or personnel ties whatsoever with Daiwa Bank.
  • Daiwa Securities Group has strong alliances with multiple financial-related companies.
  • Competitive relationship as No. 2 in the industry with Nomura Holdings.
  • Influence in the financial industry through 24% ownership of Aozora Bank shares.
  • Full entry into online banking market with establishment of Daiwa Next Bank.
  • Business integration through absorption merger of Daiwa Securities Capital Markets.
  • Group executives appointed as members of the Securities and Exchange Surveillance Commission.

Future Outlook

Growth Drivers

  • Expansion of digital financial services
  • Customer base expansion through strengthened alliances with regional banks
  • Market growth in ESG investments
  • Further expansion into global markets
  • Growth in online banking business
  • Diversification of investment trust market
  • Sophistication of asset management needs
  • Business efficiency through technological innovations
  • Diversification of financial product development
  • Construction of next-generation securities trading platforms
  • Enhancement of financial services for SMEs
  • Advancement of sustainability-focused management

Strategic Goals

  • Consolidated net sales exceeding 2 trillion yen
  • Significant increase in assets under custody
  • Profitability and market expansion in online banking business
  • Achievement of over 50% ratio in ESG-related products
  • Strengthening of business diversification domestically and internationally
  • Improvement in employee diversity and work-life balance
  • Completion of advanced digital technology integration in operations
  • Further strengthening of compliance and governance
  • Continuous promotion of social contribution activities
  • Establishment as leader in sustainable finance

Business Segments

Corporate Securities Services

Overview
Provides a wide range of securities brokerage and underwriting services to institutional investors and corporations.
Competitiveness
Comprehensive financial services and global network
Customers
  • Institutional investors
  • Pension funds
  • Corporate pension administrators
  • Investment advisory firms
  • Insurance companies
  • Asset management companies
  • Government-related funds
Products
  • Bond underwriting
  • Equity underwriting
  • M&A advisory
  • Investment banking
  • IPO underwriting
  • Securities agency
  • Derivatives trading

Asset Management Services

Overview
Offers diverse asset management products and services to corporate customers.
Competitiveness
High expertise and diverse product lineup
Customers
  • Corporate customers
  • Pension funds
  • Financial institutions
  • Public institutions
  • High-net-worth family offices
Products
  • Investment trusts
  • Private equity
  • Real estate funds
  • Asset management
  • Fund wraps
  • Portfolio construction

Financial IT Solutions

Overview
Provides advanced IT services to the financial industry, supporting business efficiency.
Competitiveness
Capable of addressing diverse needs within and outside the group
Customers
  • Group companies
  • Financial institutions
  • Securities firms
  • Asset management companies
Products
  • Trading systems
  • Customer management platforms
  • Online trading services
  • Asset management systems

Real Estate Investment Business

Overview
Plans and sells real estate-related asset management products and conducts operations management.
Competitiveness
Abundant real estate assets and management know-how
Customers
  • Institutional investors
  • Pension funds
  • Corporate investors
  • Individual investors
Products
  • Real estate investment trusts
  • Real estate management
  • Fund formation
  • Asset valuation services

Financial Product Sales Support

Overview
Provides sales support and education to regional financial institutions.
Competitiveness
Regionally focused sales expansion
Customers
  • Regional banks
  • Shinkin banks
  • Trust banks
  • Local securities firms
Products
  • Investment trust sales agency
  • Financial product training
  • Customer management systems

Risk Management Support

Overview
Provides advanced risk analysis and management services.
Competitiveness
Daiwa Institute of Research's research capabilities and expertise
Customers
  • Financial institutions
  • Corporations
  • Insurance companies
Products
  • Market risk analysis
  • Credit risk management
  • Compliance support

Financial Education and Training

Overview
Implements specialized education programs for financial professionals.
Competitiveness
Curriculum directly linked to practical work
Customers
  • Securities firms
  • Banks
  • Corporate training personnel
Products
  • Financial product training
  • Private banking training
  • Risk management education

Subsidiary Support Business

Overview
Internal services supporting group management efficiency and synergy creation.
Competitiveness
Utilization of group-unique know-how
Customers
  • All group subsidiaries
Products
  • Management support
  • Strategy formulation support
  • IT services

Online Banking Business

Overview
Online banking business through wholly-owned subsidiary Daiwa Next Bank.
Competitiveness
Linked financial services with securities firm
Customers
  • General individual customers
Products
  • Deposit services
  • Loans
  • Payment services

Consulting Services

Overview
Engages in consulting business in finance and management fields.
Competitiveness
Daiwa Institute of Research's specialized knowledge and analytical capabilities
Customers
  • Financial institutions
  • Corporate executives
Products
  • Business strategy formulation
  • Market analysis
  • M&A advisory

Corporate Investment Business

Overview
Investment activities supporting growth of unlisted companies, centered on Daiwa Corporate Investment.
Competitiveness
Abundant financial network and funding strength
Customers
  • Unlisted companies
  • Startups
Products
  • Venture capital investments
  • Growth support
  • Business turnaround support

Digital Securities Services

Overview
Develops securities trading services utilizing the latest digital technologies.
Competitiveness
Technology investments and enhanced user experience
Customers
  • Individual investors
  • Institutional investors
Products
  • Smartphone securities services
  • Robo-advisors
  • Digital asset management

Competitive Advantage

Strengths

  • Brand power as the No. 2 securities group in the industry
  • Broad and diverse financial service provision capabilities
  • Solid assets under custody foundation
  • Strong domestic and international networks
  • Advanced risk management and research capabilities
  • Business diversification through abundant subsidiaries
  • Proactive in financial technology innovations
  • Strong financial foundation
  • Talent acquisition excellence
  • Compliance adherence system

Competitive Advantages

  • Advanced market analysis capabilities utilizing Daiwa Institute of Research and other specialized institutions
  • Customer needs response through diverse financial product lineup
  • Comprehensive financial solutions through collaboration with multiple subsidiaries
  • Strategic alliances with Aozora Bank and Japan Post Insurance
  • Advanced initiatives in digital fields such as online banking
  • Enhanced risk management and governance systems
  • Long-cultivated know-how in domestic securities trading
  • Balanced business expansion for both corporate and individual sectors
  • Scale advantages as the No. 2 leading securities firm
  • Broad network of related companies across multiple industries

Threats

  • Low growth and intensifying competition in domestic securities market
  • Impact of strengthened financial regulations
  • Increasing IT security risks
  • Adaptation challenges due to rapid changes in financial technology
  • Revenue fluctuation risks from rising market volatility
  • Intensifying competition from emerging fintech companies
  • Complexification of asset management environment
  • Customer base shrinkage due to declining domestic population
  • Uncertainty in international political and economic situations
  • Impact of exchange rate fluctuations on overseas investment returns
  • Business suspension risks from natural disasters
  • Credit risk management challenges

Innovations

2024: Capital and business alliance with Aozora Bank

Overview
Acquired approximately 24% of Aozora Bank's shares, becoming the largest shareholder.
Impact
Synergy creation through strengthened collaboration in banking and securities operations

2024: Capital and business alliance with Japan Post Insurance

Overview
Japan Post Insurance plans to acquire approximately 20% of Daiwa Asset Management's shares.
Impact
Strengthening of asset management business and customer base expansion

2023: Expansion of digital securities trading platform

Overview
Advancing sophistication of online trading environment and strengthening smartphone trading.
Impact
Improved convenience for individual investors and trading activation

2023: Revolution in asset management services using AI

Overview
Launched AI-utilizing proposal-type automatic portfolio design.
Impact
Improved customer satisfaction and efficient management support

2022: Launch of new online services by Daiwa Next Bank

Overview
Aims to expand customer base through digitalization of banking services.
Impact
Successful acquisition of new younger customers

2021: Expansion of sustainable investment products

Overview
Launched multiple ESG-considerate investment trusts.
Impact
Expansion of investor base and brand strengthening

2021: Financial risk analysis tool development by Daiwa Institute of Research

Overview
Improved risk management efficiency with AI analysis tools.
Impact
Contributes to improved risk management accuracy for customers

2020: Introduction of automated loan screening system

Overview
Built rapid screening processes utilizing AI.
Impact
Significant reduction in screening time and efficiency improvement

Sustainability

  • Promotion of ESG investments in the financial industry
  • Promotion of sustainable asset management
  • Implementation of energy-saving and CO2 emission reduction measures
  • Promotion of diversity and inclusion
  • Strengthening of CSR activities through collaboration with local communities
  • Thorough compliance and ethical management
  • Enhancement of employee health and safety management
  • Reduction of environmental impact in supply chain
  • Promotion of financial education and investor protection
  • High-transparency information disclosure