Daiwa Profit Rises as Dealmaking Mitigates Bond Trading Woes (1)

Daiwa Securities Group Inc.’s profit beat estimates in the first quarter, as investment banking helped to cushion a slump in bond trading.

Net income at Japan’s second-biggest brokerage rose 30% year-on-year to ¥31.2 billion ($211 million) in the three months ended June 30, according to a statement Wednesday. That exceeded analysts’ estimates for ¥27.6 billion.

The results came a day after bigger rival Nomura Holdings Inc.also reported profit that beat projections as the firm’s stock traders made up for struggles on the fixed-income desk. Dealmaking in Japan has been a bright spot for securities firms as they try ...