Japan’s Top 5 Brokerages Post Profit Gains in April-Dec.

Tokyo, Feb. 4 (Jiji Press)–Japan’s five largest securities firms posted higher revenue and profit for April-December last year as rising stock prices lifted brokerage fee revenue and robust merger and acquisition activity boosted advisory fee revenue. The broader adoption of Japan’s revamped Nippon Individual Savings Account tax-exempt small-lot investment program, known as NISA, lifted investment trust balances, supporting earnings across the firms. Nomura Holdings Inc.’s net profit rose 7.2 pct from a year earlier to 288.1 billion yen, supported by expanding investment trust balances, among other factors. Daiwa Securities Group Inc. posted a 10.8 pct rise in net operating revenue. But its net profit rose only modestly, edging up 0.8 pct to 125.4 billion yen, after the company’s acquisition of an additional stake in Aozora Bank boosted its nonoperating earnings in the year-before period. Mizuho Securities Co. reported a 43 pct jump in net profit to 73.7 billion yen, driven by strong demand for underwriting and advisory services for bond issuance by companies and local governments. Mitsubishi UFJ Securities Holdings Inc. posted a 23.3 pct increase in net profit to 40.9 billion yen, as a boost from robust M&A activity more than offset the impact of weak domestic retail performance. SMBC Nikko Securities Inc.’s net profit rose 22.1 pct to 73.5 billion yen on sharply higher M&A-related revenue. END [Copyright The Jiji Press, Ltd.]