Nomura Holdings, Inc., Japan's largest brokerage and investment bank, reported a robust first quarter for the fiscal year 2025 (FY25), with net income more than tripling year-on-year (YoY) to 68.9 billion yen ($428 million).

Nomura Reports Strong Q1 Results, Wealth Management Hits Nine-Year High

The company's three core business segments posted a combined pretax income of 86.6 billion yen, up 12% from the previous quarter and three times higher than the same period last year. This marks the fifth consecutive quarter of growth for these segments.

Nomura's Wealth Management division recorded its best quarterly performance in nine years, with pretax income surging 84% YoY to 42.3 billion yen. The division's success was attributed to record-high recurring revenue assets and recurring revenue, driven by a segment-based approach to client services.

“Our Wealth Management business had its best quarter in nine years as our segment-based approach drove recurring revenue assets and recurring revenue to a record high,” said Kentaro Okuda, Nomura's President and Group CEO.

The Investment Management division also saw significant growth, with assets under management reaching an all-time high of 92.5 trillion yen. Pretax income for this segment jumped to 23.2 billion yen, a 6.4-fold increase from the previous year. Notably, alternative assets under management surpassed 2 trillion yen, reflecting the company's expanding presence in private markets.

Wholesale division revenues remained strong, with pretax income increasing 3% quarter-on-quarter to 21.1 billion yen, despite a slowdown in Investment Banking due to fewer executed deals and seasonal factors in Japan. The division's performance was bolstered by solid results in Spread Products and Equities .

Nomura reported earnings per share of 22.36 yen, up 24% from the previous quarter and three times higher than the same period last year. The company's return on equity (ROE) for the first quarter stood at 8.1%.

Looking ahead, Okuda emphasized the company's commitment to its global strategy, stating, “We will continue to intensify our global strategy leveraging our Japan franchise to consistently achieve ROE of 8 to 10 percent or more.”

Several months ago, Bloomberg reported that the company led by Okuda has set an ambitious financial target for the coming years. The goal is to reach a pre-tax income of over 500 billion yen (approximately $3.2 billion) by the end of March 2031.

Personnel Changes and Strategic Investments

In recent developments, Nomura has brought on board a new Chief Economist for Developed Markets, David Seif. The appointee, who has a doctoral degree, brings more than 15 years of experience in macroeconomic research from prominent hedge funds. According to official statements, the new economist will be stationed in New York and will report directly to the heads of Global Macro Research and US Fixed Income Research.

Simultaneously, the company has bolstered its rates trading capabilities in the Europe, Middle East, and Africa (EMEA) region. A new Head of EMEA Flow Rates, Hemish Shah, has been appointed, bringing over 15 years of expertise in the rates market. The new hire previously held a senior position at a major German bank, overseeing European government bonds, bond derivatives, and Euro inflation trading.

Earlier this year, Nomura established a new subsidiary aimed at consolidating its public and private credit offerings for institutional clients in the Americas. The CEO of this new entity stated, “NCM was created to tap into growing demand from US institutional and intermediary investors for credit market expertise.”