Daiwa Has First Profit Gain in Seven Quarters on Trading
(Bloomberg) -- Daiwa Securities Group Inc.’s profit rose for the first time in seven quarters as it joined Wall Street firms in benefiting from a jump in bond trading.
Net income grew 11% to 15.7 billion yen ($144 million) in the three months ended Dec. 31 from a year earlier, Japan’s second-biggest brokerage said Friday.
- Similar to larger rival Nomura Holdings Inc., Daiwa got a boost from fixed-income trading, particularly in the U.S., spurring revenue at its wholesale division. The company’s overseas operations made money for the 15th straight quarter.
- Daiwa also posted higher revenue from its domestic retail business compared with the previous quarter, after a stock-market rally restored some risk appetite among investors.
- Still, retail revenue and pretax profit remained lower than a year earlier, and Chief Financial Officer Eiji Sato told reporters that the recent coronavirus outbreak is now affecting investor sentiment.
- Shares of Daiwa closed 0.8% higher before the announcement, taking this year’s gain to 1.1%.
- For more information on the results, click here.
- Here’s our story on Nomura’s earnings a day earlier.
- See the company’s presentation here.
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