Nomura Gains a Windfall in Q2 despite Global Worries


Japanese brokerage and investment banking giant, Nomura, generated a net profit of 16.8 billion yen ($113.9 million) between July and September, the second quarter of the ongoing fiscal year.

The figure strengthened by 9.9 times quarter-over-quarter and 5.2 times year-over-year. Though it looks impressive on the surface, the figure was actually lackluster. It was pushed higher as the company booked a 39 billion yen charge from US mortgage-backed loans issued a decade ago.

Nomura’s Chief Financial Officer, Takumi Kitamura, also admitted in a press briefing that “the latest results are not at satisfactory levels.”

The Japanese giant ended the three months with net revenue of 318.0 billion yen ($2.2 billion). The figure came in 6 percent higher from the previous quarter but was weak by 0.3 percent year-over-year. It generated a pre-tax income of 31.5 billion yen ($218 million).

Business Divisions

Nomura’s businesses are categorized into four segments: retail, investment management and wholesale.

While retail and investment management revenue declined year-over-year, it strengthened for the wholesale division. Pre-tax income in all three segments went down from the same period of the previous year.

With a low demand for bond and equity underwriting, revenue from investment management came in at 26.2 billion yen, which is 24 percent lower than in Q2 of the previous fiscal. In addition, its pre-tax income decreased by 63 percent to 56 billion yen.

The retail segment generated 72.5 billion yen in revenue, which is down by 15 percent, whereas the wholesale segment was 72.5 billion yen, which is higher by 19 percent. Income from the retail division came in 68 percent lower at 5.5 billion yen, while the figure dived by 19 percent for wholesale to 20.2 billion yen.

The group’s business was impacted by increasing interest rates and the fallouts of the Russia-Ukraine war on the stock markets. Nomura even changed its earnings structure to safeguard itself from market swings.

“Amid the ongoing market uncertainty, we remain committed to meeting the diversified needs of our clients and delivering sustainable growth,” said Kentaro Okuda, Nomura’s President and Group CEO.

Japanese brokerage and investment banking giant, Nomura, generated a net profit of 16.8 billion yen ($113.9 million) between July and September, the second quarter of the ongoing fiscal year.

The figure strengthened by 9.9 times quarter-over-quarter and 5.2 times year-over-year. Though it looks impressive on the surface, the figure was actually lackluster. It was pushed higher as the company booked a 39 billion yen charge from US mortgage-backed loans issued a decade ago.

Nomura’s Chief Financial Officer, Takumi Kitamura, also admitted in a press briefing that “the latest results are not at satisfactory levels.”

The Japanese giant ended the three months with net revenue of 318.0 billion yen ($2.2 billion). The figure came in 6 percent higher from the previous quarter but was weak by 0.3 percent year-over-year. It generated a pre-tax income of 31.5 billion yen ($218 million).

Business Divisions

Nomura’s businesses are categorized into four segments: retail, investment management and wholesale.

While retail and investment management revenue declined year-over-year, it strengthened for the wholesale division. Pre-tax income in all three segments went down from the same period of the previous year.

With a low demand for bond and equity underwriting, revenue from investment management came in at 26.2 billion yen, which is 24 percent lower than in Q2 of the previous fiscal. In addition, its pre-tax income decreased by 63 percent to 56 billion yen.

The retail segment generated 72.5 billion yen in revenue, which is down by 15 percent, whereas the wholesale segment was 72.5 billion yen, which is higher by 19 percent. Income from the retail division came in 68 percent lower at 5.5 billion yen, while the figure dived by 19 percent for wholesale to 20.2 billion yen.

The group’s business was impacted by increasing interest rates and the fallouts of the Russia-Ukraine war on the stock markets. Nomura even changed its earnings structure to safeguard itself from market swings.

“Amid the ongoing market uncertainty, we remain committed to meeting the diversified needs of our clients and delivering sustainable growth,” said Kentaro Okuda, Nomura’s President and Group CEO.



Source link

Related articles

A complete listing of 2025 tech layoffs

The tech layoff wave remains to be kicking in 2025. Final 12 months noticed greater than 150,000 job cuts throughout 549 firms, in accordance with unbiased layoffs tracker Layoffs.fyi. To this point this...

Klarna has halted its deliberate IPO within the wake of Trump’s tariffs turmoil; StubHub has additionally delayed its IPO plans (Wall Road Journal)

Featured Podcasts Onerous Fork: Tech Inventory Shock + Fixing the Thriller of OpenAI's "Blip" + Tinder's Flirt-Off The longer term is already right here. Every week, journalists Kevin Roose and Casey Newton discover and make sense...

March Jobs Report: Stable Labor Market Information Overshadowed By Weak Outlook (SPX)

This text was written byComply withEarnings evaluation of particular person shares and macro evaluation of broad asset class, sector and country-specific funds to find developments utilizing a top-down strategy.  For extra content material...

XRP Worth Declines Regardless of Coinbase Submitting with CFTC to Launch XRP Futures Contracts

Government Interview with Ahmad Khatib | CFI | iFX EXPO Dubai 2025 Government Interview with Ahmad Khatib | CFI...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com