Japanese brokerage Daiwa's Q2 profit jumps 80% on Aozora stake (updated)

Daiwa Securities

29/10/2024 07:23

(Adds details of earnings)
       TOKYO, Oct 29 (Reuters) - Japan's second-largest
brokerage and investment bank Daiwa Securities Group  8601.T 
reported on Tuesday an 80.5% surge in second-quarter net profit
as investment income jumped on its  building a large stake in
Aozora Bank  8304.T .
    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% 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)

 (Reporting by Anton Bridge; Editing by Jacqueline Wong and
Muralikumar Anantharaman)
 ((Anton.Bridge@thomsonreuters.com;))