Nikko Cordial Corp. said Thursday it fell into the red in the April-December period as an extended slump in the domestic stock market cut into key revenue sources, such as brokerage commissions and underwriting fees.
The major brokerage house said it posted group net losses of 29.65 billion yen in the period, marking a sharp reversal from the profits of 46.79 billion yen it logged during the same nine-month period a year earlier.
The pretax balance registered losses of 934 million yen compared with profits of 64.59 billion yen logged a year earlier, with operating revenues down 30.6 percent to 219.66 billion yen.
Income from brokerage commissions came to 56.6 billion yen in the April-December period, down 29 percent from a year ago, while equities underwriting fees plunged 63 percent to 11 billion yen.
Nikko posted extraordinary losses of 24 billion yen, of which 15.1 billion yen came from appraisal losses on securities holdings and 2.9 billion yen arose from capital losses suffered on the sale of fixed assets.
During the previous business year, the company logged group net profits of 44.28 billion yen and group pretax profits of 96.03 billion yen on operating revenues of 442.55 billion yen.
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