[Company analysis] Daiwa Securities Group Inc. (大和証券グループ本社)

「Daiwa Securities Group Inc. (大和証券グループ本社)」is holding company which owns「Daiwa Securities Co. Ltd.(大和証券)」as its core company. It is the second largest securities group holding company in Japan after「Nomura Holdings(野村ホールディングス)」. Their company name is similar to「The Daiwa Bank(大和銀行)」, one of the predecessors of「Resona Holdings(りそなホールディングス)」, but there is no relationship or connection. The number of consolidated employees is approximately 157,073.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Daiwa Securities Group Inc.
Company name (Japanese)	大和証券グループ本社
Date of establishment	Monday, April 26, 1999
Headquarters location	〒100-6751 東京都千代田区丸の内一丁目9番1号
Capital	247,300
Consolidated sales	441,240
Consolidated operating profit	63,813
Consolidated total assets	21,126,706
Consolidated capital	1,256,430
Capital adequacy ratio	5.9%
Consolidated number of employees	157,073

 

 

 

2. Summary and Features

 
The predecessor of current「Daiwa Securities Group 」are,「藤本証券(Fujimoto Bill Broker Securities Co. Ltd.)」which was engaged in securities business mainly in the short-term capital sector, and「日本信託銀行(Nippon Trust Bank)」, which was the associated bank of Osaka Stock Exchange. The both companies conducted business integration in December 1943. This is the origin of「Daiwa Securities Group 」.

In the past,「Daiwa Securities Group 」partnered with「Sumitomo Mitsui Financial Group」in order to introduce their customers to each other regarding corporate operations. They have also established「Daiwa Securities SB Capital Markets」as a joint investment. As a result, this company achieved 2nd largest market share in Japanese securities business. However, in 2009, the capital and business tie-up with「Sumitomo Mitsui Financial Group」was dissolved, and the securities business for corporations was transferred to「Daiwa Securities Capital Markets」, which is solely owned by「Daiwa Securities」.

Currently,「Daiwa Securities Group」is developing three businesses; business for individuals, business for corporations and asset management business, through their domestic base of 160 branches nationwide and a global network based in 21 countries. The major subsidiaries are「Daiwa Securities(大和証券)」,「Daiwa Asset Management(大和証券投資信託委託)」,「Daiwa Institute of Research Holdings(大和総研グループ)」and「Daiwa Securities Business Center(大和証券ビジネスセンター)」. 

As for the corporate culture,「Daiwa Securities Group」is a typical top-down company and it is known for athletic temperament is fused with the performance-based salary system. As a No. 2 company in the Japanese securities industry, their main goal is very clear: becoming the No. 1. However, recently, the operating profit of individuals section exceeds the corporation section, which means they are relatively weak at B2B transacation. In addition,「Daiwa Securities Group」started large-scale business development with the aim of raising the Asian-related profit to 100 billion yen from 2007, but as a result, It was end with red. In other words, this company is weak in overseas expansion copared to their competitor,「Nomura Holdings」.

 

 

 

3. Major Business

 

■ Securities business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated revenue(After deduction of financial expenses)		472,750	505,350	441,240
Net income attributable to shareholders		104,067	110,579	63,813
Consolidated total assets		19,827,296	21,141,743	21,126,706
Consolidated net assets		1,343,433	1,370,520	1,256,430
Breakdown of revenue	B2C securities business	188,051	214,247	185,865
	B2B securities business	182,875	171,192	158,903
	Asset Management business	46,438	49,390	48,232
	Investment busines	15,736	27,401	1,766
	Others	37,087	41,117	48,468