Daiwa profits decline

by Richard Kilner

Story link: Daiwa profits decline

Japan’s second largest broker, Daiwa Securities Group, has announced its profits fell sharply by 36% in the last quarter, as investment banking and the stock market both declined.

It is expected that Daiwa will record a double-digit drop in annual profits in March, as is rival firm Nomura Holdings.

Nomura was more exposed to subprime loans, but also performed better in investment banking.

Daiwa recored a profit of ¥17.26bn for the last quarter, compared to ¥26.75bn for the corresponding period in 2006.

However, the figure did show a rise on the second quarter profits of ¥14.7bn.

The firm’s annual profit is predicted to be ¥76.9bn, a decrease of 17%. Nomura is also predicted to see a 17% fall in profits.

Daiwa forecasts overseas revenue to grow by 1,000% in the next five years, up to ¥100bn.