Daiwa profit misses estimates amid investment banking losses

DAIWA Securities Group’s profit rose less than analysts estimated as investment banking losses overshadowed gains in the domestic wealth management business.

Net income gained 1.2% from a year earlier during the three months ended June 30 to 24 billion yen (S$213.9 million), the company said in a statement on Thursday (Aug 1). That compares with the average forecast of 30.8 billion yen by three analysts polled by Bloomberg News.

Securities companies in Japan have benefited in recent quarters from increased stock and bond trading at home, driven by policy changes such as the central bank ending negative interest rates and regulators putting pressure on companies to boost shareholder value.

Profit at Daiwa’s larger rival Nomura Holdings rose more than analysts estimated during the same quarter as revenue from domestic wealth management jumped while trading and investment banking income grew. BLOOMBERG