TOKYO :Daiwa Securities reported on Friday a near two-thirds rise in third-quarter net profit, driven by record quarterly income in its asset management division and a recovery in its investment banking arm.
Profit for the October-December period was 46.6 billion yen ($302.6 million), compared to 29.8 billion yen in the same period a year prior.
The results show how Japan’s second largest brokerage and investment bank is capitalising on the gradual shift from savings to investment among Japanese households and the swell in corporate action as Japanese companies look to improve corporate value.
Daiwa’s asset management division reached a record quarterly income of 29.2 billion yen, driven by increased inflows to stock investment trust products.
Its investment banking division made a small profit of 5.6 billion yen, as Daiwa secured fees from corporate actions such as the offloading of non-core assets and cross shareholdings, as well as strong mergers and acquisitions activity.
Daiwa’s wealth management division broke a streak of two consecutive quarters of falling profits as individual investors invested more proactively following a subdued period triggered by the extreme volatility in the Japanese stock market in August last year.
($1 = 154.0100 yen)
