Japanese brokerage Daiwa’s Q2 profit jumps 80% on Aozora stake

TOKYO : Japan’s second-largest brokerage and investment bank Daiwa Securities Group reported on Tuesday an 80.5 per cent surge in second-quarter net profit as investment income jumped on its building a large stake in Aozora Bank.
Net profit for the July-September period was 53.8 billion yen ($352 million), compared to 29.8 billion yen in year-earlier period.
Ordinary income in Daiwa’s asset management division hit a record high as fund inflows grew, particularly into the updated tax-efficient investment accounts for domestic investors introduced in January this year.
However, in the wealth management division both revenue and ordinary income fell compared to the previous year as market turmoil in August, which triggered the biggest single-day rout in Japanese stocks since 1987, brought down flow revenue.
Daiwa and Aozora announced a business and capital alliance in May this year and Daiwa is now Aozora’s largest shareholder, holding 23.65 per cent of its shares, according to LSEG data as of August 2024.
As Aozora is an equity-method affiliate, Daiwa recorded a boost in non-operating income of 21.6 billion yen in the quarter.
($1 = 152.8200 yen)