Earnings soared at the nation’s five largest brokerages for the year ended March 31 as investors jumped into the stock market following the fiscal spending binge and export-favoring yen drop triggered late last year by Prime Minister Shinzo Abe’s election.
The five posted combined group net profits of ¥301.3 billion in a remarkable rebound from a combined loss of ¥87.6 billion the previous year, as two swung into the black while profits expanded sharply at the other three.
The five companies posted combined group net profits for the first time in three years.
Daiwa Securities Group Inc. and Mizuho Securities Co. pulled out of the red to post large profits.
The five saw commission revenue surge thanks to the booming market and enjoyed robust sales of investment trusts.
Group net profit surged 9.2-fold from the previous year to ¥107.2 billion at Nomura Holdings Co., 2.8-fold to ¥46.9 billion at Mitsubishi UFJ Securities Holdings Co., and 2.3-fold to ¥45.7 billion at SMBC Nikko Securities Inc.
Daiwa Securities Group Inc. reported ¥72.9 billion in group net profit., compared to a loss the previous year. Mizuho Securities Co. also swung into the black with ¥28.6 billion in net profit.