Consolidated Liquidity Coverage Ratio and Consolidated Net Stable Funding Ratio Report [PDF:185KB]

January 28, 2022

Daiwa Securities Group Inc.

Consolidated Liquidity Ratio Report

and consolidated net stable funding ratio

Liquidity management strength status in the second quarter of fiscal 2021

Pursuant to Section 57-17 of the Financial Instruments and Exchange Act, “Notification, etc. of documents describing management soundness status”, Daiwa Securities Group Inc. reports the soundness status liquidity management in the second quarter of fiscal 2021.

Key indicators (at consolidated group level)

KM1: Key indicators

（Unit: 1 million yen, %）

Qualitative information (consolidated)

1. Qualitative information on the consolidated Liquidity Coverage Ratio

1. Evolution of the consolidated Liquidity Coverage Ratio compared to the previous quarter

The total high quality liquid assets (HQLA) of Daiwa Securities Group Inc. (the group) was 2,666,490 million yen, down 7,163 million yen from the previous quarter.

Cash outflows related to derivative exposures, loss of funding on debt products, committed credit and liquidity facilities amounted to 230,215 million yen, a decrease of 20,711 million yen compared to in the previous quarter. Cash outflow from other contractual funding obligations was 1,002,118 million yen, down 110,661 million yen from the prior quarter. Cash inflow from other cash inflow was 1,027,341 million yen, down 97,266 million yen from the prior quarter. And the total net cash outflow was 1,709,909 million yen, which decreased by 39,403 million yen from the previous quarter.

Due to the conditions mentioned above, the group’s consolidated Liquidity Coverage Ratio stood at 155.9%, up 3.1 points. For two years, the evolution of the ratio has been relatively stable.

1. Valuation of the group’s consolidated Liquidity Coverage Ratio

The group sets out “The Regulatory Liquidity Management Rule”, and not only maintains a minimum liquidity coverage ratio, but also sets the internal alert level and periodically reviews whether the ratio level is above the alert level internal.

The group’s consolidated Liquidity Coverage Ratio is sufficiently above the minimum requirement.

C) Composition of HQLA

There is no significant change in the composition of HQLA compared to the previous quarter.

1. Other issues related to the consolidated Liquidity Coverage Ratio
   There is no material element to disclose.

2. Qualitative information on the consolidated net stable funding ratio

1. Evolution of the consolidated net stable funding ratio

The total available stable funding (ASF) of Daiwa Securities Group Inc. (the group) was 8,815,759 million yen. Capital before applying capital deductions was 1,538,266 million yen, retail and small business customer financing was 1,847,284 million yen, and wholesale financing was 5,023,975 million yen .

The total required stable funding (RSF) was 5,490,069 million yen. Loans, repo assets, securities and other similar assets were 2,806,974 million yen and other assets were 2,196,173 million yen.

Due to the above conditions, the group’s consolidated net stable funding ratio was 160.5%, which is sufficiently above the minimum requirement.

1. Application of the exception for interdependent assets and liabilities
   Not applicable.
2. Other issues related to the consolidated net stable funding ratio
   There is no material element to disclose.