Nomura Q1 2020 Profit Jumps by More Than 900% After Weak 2019

Net revenues for the firm also saw double-digit growth during the period.

Nomura Holdings, Inc. announced its financial results for the first quarter of its fiscal year, ending on March 31, 2020, revealing higher net revenue and pretax income quarter-on-quarter.

As Finance Magnates reported, in its 2019 fiscal year, Nomura reported the first full-year net loss the company has seen in more than a decade. Specifically, the firm noted a net loss of ¥100.4 billion ($924.9 million).

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During the quarter, net revenue was ¥332 billion. When measured against the same quarter in the firm’s 2019 fiscal year, which had a net revenue of ¥272 billion, it is up by 22.1 percent.

Net income for the period came in at ¥55.8 billion ($518 million). This is considerably higher on a year-on-year comparison; in fact, it is higher by 969 percent from the ¥5.2 billion net income in Q1 of 2019.

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“Although market uncertainty prompted some clients to stay on the sidelines, our core businesses reported higher net revenue and pretax income compared to last quarter, underscoring our continued efforts to tailor products and services to the individual needs of our clients and improve profitability,” said Nomura President and Group CEO Koji Nagai. 

Nomura wholesale unit sees an uptick in revenues

Taking a look at the Japan-headquartered firm’s wholesale business, which includes the operations of its brokerage – the largest in all of Japan, the unit managed to report some solid figures.

Namely, the wholesale business booked net revenue of ¥159.5 billion. This represents an increase of 12 percent against the previous quarter and an uptick of 16 percent year-on-year. Income before taxes was ¥20.0 billion.

Global Markets revenues also improved on a quarterly comparison, driven by higher fixed income revenues mainly in the Americas.

Nomura’s wholesale business has been undergoing a restructuring after it was revealed that the Japanese firm was planning to cut more than 100 jobs in its wholesale unit. As Finance Magnates reported, these changes were mainly affecting traders and bankers, according to sources familiar with the matter, who broke the news to Bloomberg.

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