Daiwa Securities Group Inc. said Wednesday its first-quarter profit fell 78 percent as brokerage commissions, trading profit and fees from underwriting dropped.
Net income declined to ¥5.89 billion for the three months that ended June 30 from ¥27.3 billion a year earlier, Daiwa said.
Daiwa joined bigger Nomura Holdings Inc., which posted its first back-to-back quarterly loss in at least six years, in reporting declining revenue as the deepening global credit crisis cut profits from trading and underwriting sales of stocks and bonds. Tokyo-based Daiwa returned to profit after a ¥12.9 billion loss the preceding quarter, its first in five years.
"The changes in credit markets left Daiwa with few profit opportunities," said Tatsuo Majima, a Tokyo-based analyst at Deutsche Securities Inc.
The company's revenue fell to ¥165.4 billion for the three months from ¥254 billion a year earlier.
Underwriting fees totaled ¥4.6 billion, down from ¥7.4 billion. Trading profit dropped to ¥21.3 billion from ¥46.7 billion.