Daiwa Securities has announced it will acquire the banking subsidiary of Orix Corp for 370 billion yen ($2.3 billion), as Japan's second-largest brokerage firm further deepens its presence in the commercial lending sector.

The company stated in a Monday declaration that it will use its own funds to finance the acquisition of Orix Bank Corp. The transaction is anticipated to be finalized by the end of October.

Daiwa Securities also reported that its net profit for the three months ending March 31 increased by approximately 66% compared to the same period last year, reaching 49.9 billion yen. This figure surpassed the average analyst forecast of 42 billion yen from five surveyed experts.