Fitch Ratings: Profit growth of Japan's five major securities firms may slow, but outlook remains "neutral"

汇通财经2026/06/22 03:26

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(1) Fitch Ratings expects that after a robust fiscal year ending March 2026, the profitability of Japan’s five major securities firms will moderate, as earnings return to normal levels from recent highs. However, Fitch maintains a “neutral” outlook on the sector, primarily due to strong trading volumes, elevated market volatility, and the continued normalization of yen interest rates. (2) In fiscal year 2026, the five companies' average net operating revenue grew by 10%, with most operating profits increasing by over 20% and return on equity improving. Nonetheless, as external uncertainties rise and macroeconomic headwinds intensify, investor sentiment is cooling, and earnings growth may slow further. (3) Facing a more uncertain operating environment, each company is continuing to focus on asset and wealth management and a client-centric model to enhance income stability and strengthen risk controls. (4) Fitch expects Nomura Holdings and Daiwa Securities Group to maintain sound capital positions. Daiwa’s announced acquisition of ORIX Bank may reduce its common equity Tier 1 ratio by about 5 percentage points, but management plans to keep it above 12%. Fitch anticipates the industry’s leverage ratio will remain in line with current levels, with liquidity retaining a relative advantage. (5) All rated securities firms have a stable outlook on their long-term issuer default ratings, mainly based on Fitch’s expectation that the government or their ultimate parent will continue to provide extraordinary support. Although profitability remains the main weakness in the stand-alone credit profiles of Nomura and Daiwa, their IDRs face limited downward pressure unless government support ratings are downgraded.

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IREM issued a correction to its Sept. 4 board resolution calling an extraordinary shareholders’ meeting, updating the agenda to specify three director appointments. The meeting is scheduled for Oct. 21 at 9 a.m. at the company’s headquarters in Buan, North Jeolla Province. The revised slate includes the reappointment of CEO Woojin Kim as an inside director for a three-year term. The revised slate includes the appointment of Youngcheol Seong as an inside director for a three-year term. The revised slate includes the appointment of Hyungdo Lee as an independent director for a three-year term. The correction dated Oct. 6 was filed to reflect the finalized agenda items. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. IREM Co. Ltd. published the original content used to generate this news brief via DART, the regulatory disclosure system operated by the South Korea Financial Supervisory Service (FSS) (Ref. ID: 20261006900738), on October 06, 2026, and is solely responsible for the information contained therein.

Bitget•2026/10/06 09:42