Fiscal Year Ending March 2026 Earnings Presentation

Performance Overview

Full-year results for the fiscal year ending March 2026 showed year-over-year increases in revenue and profit, with operating revenue of JPY 97,716 million (+13.2%), operating income of JPY 14,815 million (+26.2%), and net income attributable to owners of parent of JPY 16,569 million (+50.0%). The ROE for the fiscal year was 8.8%. The main drivers of revenue growth were increased equity brokerage commissions due to rise in Japanese and U.S. stock markets, enhanced stable income including investment trust agency fees and interest on securities-secured loans, improved investment performance of overseas asset management subsidiaries, and gains on sales of strategic equity holdings and affiliate stocks (extraordinary income).

Quarterly Trends and Expense Dynamics

In the fourth quarter, market instability due to heightened geopolitical risks led to decreased trading mainly in foreign equities, resulting in lower revenue and profit compared to the third quarter. Selling, general and administrative expenses increased by 7.9% year-over-year due to higher transaction-related expenses and personnel costs, which constrained operating income growth. Non-operating income rose 63.9% year-over-year due to increased income from equity-method investments. Among group companies, Tokai Tokyo Global Investments posted significant profit growth, while the digital subsidiary recorded a loss.