Nomura Reports Profit for Fiscal 2020 but Loss for Q4

Nomura posted total revenue of around $18.4 billion for the year ended March 31, 2020.

Nomura Holdings, Inc., a Japanese financial services company, has announced its financial results for its fiscal year ended on the 31st of March, 2020, this Friday, revealing a positive uptick for the company.

During the 12 month period, Nomura posted total revenue of ¥1.952 trillion (around $18.4 billion). When measuring this against the previous year, which posted the first full-year loss for Nomura in a decade, revenues have increased by 6.4 percent.

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This is almost a recovery from the 6.9 percent decline in revenues recorded by Nomura in its 2019 fiscal year. Net revenue for the year was ¥1.288 billion, which is higher by 15 percent year-on-year.

Unlike the previous year, which noted an income loss before income taxes of ¥37.70 billion, the year ended on the 31st of March 2020 achieved an income before income taxes of ¥248.3 billion.

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Nomura posts loss for Q4

Taking a look at the fourth quarter of the 2020 fiscal year, which was the first three months of this year, the Tokyo-headquartered company reported net revenue of ¥237.5 billion, which is lower than the previous quarter by 29 percent. It is also lower by 21 percent year-on-year.

During the three month period, Nomura recorded a loss before income taxes of ¥24.7 billion, and net loss attributable to Nomura Holdings shareholders was ¥34.5 billion.

Commenting on the results, Nomura President and Group CEO Kentaro Okuda said in the statement: “In April last year, we announced plans to rebuild our business platform. As a result of our ongoing initiatives and our continued focus on providing solutions to our clients in areas where we have a competitive advantage, pretax income from our three core businesses rebounded strongly from last year.

“… Asset Management booked its fifteenth straight quarter of inflows. Wholesale profitability improved substantially, driven by a significant improvement in Fixed Income revenues and cost reductions exceeding our initial plan.”

“In the fourth quarter, amid market turbulence due to the global spread of coronavirus, we continued to service our clients’ liquidity needs, achieving significantly stronger quarter on quarter performance in Cash Equities, Rates, and our FX/EM businesses. The market downturn in March led to unrealized losses, pushing revenues down and resulting in an overall loss.”

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