Securities Firm Becomes Japan's Most Profitable Company
Nov. 18, 1987
TOKYO (AP) _ Nomura Securities Co., Japan's largest brokerage firm, has surpassed Toyota Motor Corp. as the country's most profitable company, a company official said Wednesday.
The company's pre-tax profit for its fiscal year ended Sept. 30 soared 26.8 percent to 493.8 billion yen, or $3.6 billion, the official said. Sales rose 17.1 percent to 957.2 billion yen, or $7.0 billion, he said.
The official, who spoke on condition of anonymity, said the profit growth resulted from the booming stock and bond markets during the period.
Record-low bank interest rates during the past year encouraged the flow of large amounts of corporate and private funds into Japan's stock and bond markets, driving the Nikkei Stock Average to record highs before its precipitous fall in October following the ''Black Monday'' stock crash on Wall Street.
The three other members of Japan's ''big four'' brokerage houses also reported large earnings increases for the year.
Toyota was the country's second-most profitable company, with pre-tax earnings last year of 488.3 billion yen, or $3.6 billion, followed by Tokyo Electric Power Co. with 444.0 billion yen, or $3.3 billion, according to news reports.