TOKYO :Daiwa Securities, Japan’s second-largest brokerage and investment bank, said on Monday that net income slumped 24 per cent in the fourth quarter, hurt by lower valuations for its alternative assets business.
However, net profit for the full year rose 27 per cent, indicating Daiwa has had some success in developing a business model with more stable sources of recurring revenue.
Chief Financial Officer Kotaro Yoshida told reporters a broad shift from savings to investment in Japan in part due to the return of inflation has not been disrupted by volatility from U.S. President Donald Trump’s tariffs.
“Volatility is high at the moment but what we have to do has not changed, ” he said.
Net profit for the January-March period came in at 29.9 billion yen ($208 million), though it fell short of an average forecast of 32.9 billion yen based on the estimate of three analysts polled by LSEG.
Daiwa’s alternative assets business, which includes private equity, energy and infrastructure investments, logged a loss of 1.99 billion yen. That led to a slump of 41 per cent in profit for its asset management division.
Its wealth management division saw annual asset inflows almost double to 1.57 trillion yen.
Last week, larger rival Nomura Holdings posted a 27 per cent rise in fourth-quarter profit and logged record annual profit.
($1 = 143.7700 yen)
