Nomura’s net profit soars on surge in retail income By Reuters

By Anton Bridge

TOKYO (Reuters) – Nomura Holdings, Japan’s largest brokerage and investment bank, said on Friday that quarterly net profit rose 670% year-on-year as retail and investment banking revenue rose to its highest level in eight years.

Net profit for the January-March period was 56.8 billion yen ($363.87 million), compared with 7.3 billion yen a year ago, when concerns about a global banking crisis swept global markets and hurt Nomura’s investment banking business.

The results show Nomura’s ongoing recovery since it lowered its profit target in May after market turmoil led to a second-quarter loss in its investment business.

“Our recent results show strong momentum,” Chief Financial Officer Takumi Kitamura said at a press briefing in Tokyo.

Nomura has sought to expand its wealth management business to ensure more consistent returns that are less subject to market fluctuations.

Nonetheless, Nomura benefited from the rally in Japan’s stock market between January and March, reaching record highs. Retail revenue rose 21% more in the October-December quarter, the highest in eight years.

Despite the decline in global fee pools, investment banking revenues from domestic and cross-border transactions hit their highest since the 2016/17 financial year, the earliest comparable period available.

Assets managed by Nomura’s investment management business have risen to a record 89 trillion yen ($567.96 billion) and are growing at a faster rate than expected, CFO Kitamura said, adding that there is room for further growth.

Annual pre-tax income for Nomura’s three core divisions was 236.8 billion yen, still below its target of 288 billion yen for the fiscal year ending March 2025. However, Kitamura said momentum is growing in each segment, and domestic and overseas businesses have performed well. .

($1 = 156.7000 yen)