(Source: Kyodo News International, Tokyo)
By Kyodo News International, Tokyo
Apr. 28--TOKYO -- Daiwa Securities Group Inc. said Tuesday its group net balance fell into the red in fiscal 2008 with a loss of 85.04 billion yen, a turnaround from a profit of 46.41 billion yen the year before, due to a plunge in operating revenues such as securities brokerage commissions.
In an earnings statement for the 12-month period to March 31, the time-honored brokerage said its pretax balance also sank into the red with a loss of 141.15 billion yen, against a profit of 90.14 billion yen the year before, as revenues dropped 49.9 percent to 413.94 billion yen.
"Securities brokerage commission revenues fell 33.6 percent to 55.73 billion yen as stock transactions on the Tokyo Stock Exchange dropped 31.1 percent to 2.04 trillion yen on a daily average basis amid faltering share prices," Daiwa said in the statement.
The brokerage also traced the profit plunge to factors such as a 30.6 percent fall in stock offering-related commissions to 10.12 billion yen and a 54.3 percent decline in the asset management division's commission revenues to 17.97 billion yen.
In addition, securities trading gains plummeted 60.4 percent to 40.92 billion yen, while the brokerage booked a loss of 79.48 billion yen associated with its securities investments.
The brokerage said it will reduce its full-year dividend payment to 8 yen per share from the previous year's 22 yen. The full-year amount includes a 5 yen midterm dividend already paid.
The brokerage said it is refraining from releasing projections for fiscal 2009 as its performance is profoundly susceptible to fluid economic and market conditions.
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