TOKYO, Oct 30 (Reuters) - Daiwa Securities Group, Japan's second-largest brokerage, reported a second straight quarterly profit, helped by a rebound in the stock market and demand for investment trusts from retail investors.
Daiwa posted a 2 billion yen ($21.93 million) net profit for July-September, compared with a 20.6 billion yen loss a year earlier.
Three analysts surveyed by Thomson Reuters I/B/E/S produced an average profit estimate of 7.1 billion yen.
Daiwa's rebound comes as Japan's benchmark Nikkei average has recovered from a 26-year closing low hit on March 6, with investors having turned more optimistic about prospects for a global economic recovery and become willing to take on more risk.
But there is also a concern Daiwa may lose revenue after last month deciding to pull out of its 10-year-old investment banking joint venture with Sumitomo Mitsui Financial Group, leaving the brokerage vulnerable as competition intensifies.
SMFG, Japan's third-largest bank, expanded its brokerage business by buying Nikko Cordial Securities from Citigroup and launching underwriting and corporate advisory businesses this month.
Daiwa shares are down about 9.3 percent so far this year, underperforming Tokyo's brokerage sector subindex, which lost 3.6 percent. ($1=90.72 Yen) (Reporting by Junko Fujita; Editing by Muralikumar Anantharaman)