Daiwa Profit Falls 35% as Market Rout Dents Trading Incomeby
Daiwa Securities Group Inc.’s second-quarter profit fell 35 percent as a stock market rout triggered a slump in trading earnings.
Net income slid to 24.3 billion yen ($202 million) in the three months ended Sept. 30 from 37.1 billion yen a year earlier, Japan’s second-largest brokerage said in a statement Wednesday. That missed the 26.8 billion yen average estimate of four analysts surveyed by Bloomberg.
Daiwa joins SMBC Nikko Securities Inc. in posting lower profit after China’s equity plunge roiled financial markets worldwide. Japan’s Nikkei 225 Stock Average tumbled 14 percent in the quarter after reaching an 18-year high in June.
Revenue rose 1.5 percent from a year earlier to 158.1 billion yen, Daiwa said. Trading income slumped 39 percent to 23.7 billion yen. Underwriting fees dropped 5.9 percent to 9.6 billion yen, while brokerage commissions gained 11 percent to 18.4 billion yen.
Nomura Holdings Inc., Daiwa’s bigger rival, is scheduled to announce its earnings at 3:30 p.m. local time.