Aizawa Securities posts Q2 operating loss amid strategic shift

Aizawa Securities Group reported an operating loss of JPY 226 million for the second quarter of fiscal year 2026, a significant decline from the JPY 306 million operating profit in the prior year. Despite a 4.2% increase in operating revenue to JPY 9,937 million, driven by higher equity brokerage and asset management fees, increased selling, general, and administrative expenses, including trading-related and personnel costs, contributed to the loss. Profit attributable to owners of parent also decreased by 34.4% to JPY 1,000 million.

The company is executing a medium-term management plan (April 2025 – March 2028) focused on shifting from a market-based to a goal-based sales approach (GBA) to stabilize revenue and achieve a sustained ROE of 8% or more. Total assets grew 22.0% to JPY 133,619 million, with cash and deposits rising 96.3% to JPY 28,283 million. Assets under custody for stock products increased by 30.9% to JPY 5,165 million, reflecting progress in the GBA and platform businesses.

Aizawa Securities aims to enhance shareholder returns by distributing over JPY 20 billion through dividends and share buybacks between fiscal years 2025 and 2028, including an annual special dividend of JPY 70 per share. The company is also implementing initiatives to enhance corporate value, such as strengthening its platform business and expanding investment and asset management services, while monitoring market risks.