Daiwa Securities SMBC Co. plans to invest about ¥200 billion of its own money in the coming year to restore profit that has been battered by a slump in underwriting fees.
Japan's second-biggest investment bank will lift principal investments to about ¥600 billion from ¥408 billion as of Dec. 31, President Shin Yoshidome said in an interview Friday. The Tokyo-based firm will mainly buy stakes in Chinese unlisted companies, he said.
Yoshidome, 56, said Daiwa SMBC needs more income sources after tumbling commissions for arranging stock sales in Japan caused third-quarter profit to drop 76 percent. The value of equity offerings fell by almost two-thirds last year, according to data compiled by Bloomberg, as companies used their own funds for expansion.