July 27 (Reuters) – Daiwa Securities Group (8601.T), Japan’s second-biggest brokerage, posted a second consecutive quarterly loss, hit by a drop in fees to manage share and bond offerings.
Daiwa, which competes with Nomura Holdings Inc (8604.T), posted a 1.19 billion yen ($13.7 million) net loss in April-June, compared with a 2.8 billion yen loss in the previous quarter and a 17.9 billion yen profit in the same period a year earlier.
The result was roughly in line with market expectations. The average of three analysts surveyed by Thomson Reuters I/B/E/S had estimated a loss of 410 million yen.
Daiwa’s earnings mirrored those of bigger U.S. rivals, including Goldman Sachs (GS.N) and JPMorgan Chase & Co (JPM.N), which also suffered from lower trading revenue and investment banking fees in the latest quarter.
Japanese companies sold $5.2 billion worth of shares in the quarter, less than half the $13.8 billion in the same period a year earlier, according to Thomson Reuters data, cutting into underwriting fees across the investment banking industry.
Prior to the announcement, shares of Daiwa rose 0.3 percent to 375 yen, in line with the securities sector subindex .ISECU.T, which gained 0.5 percent. (Reporting by Junko Fujita; Editing by Lincoln Feast)