Nomura Sees Strong Uptick in Q3 Revenue and Income

Its asset management division saw the strongest levels in 19 years.

Nomura Holdings, Inc., a Japanese financial services company, has reported its financial figures for the third quarter of the 2020-21 fiscal year, from October until December 2020. Its net revenue for the period was 402.1 billion yen (around $3.9 billion), which is 9 percent higher than the previous quarter and 20 percent year-on-year.

The Japanese company started the year exceptionally with 460.7 billion yen ($4.3 billion) in revenue for the first quarter, but the number slipped by 20 percent in the consecutive quarter. Though the last quarter’s numbers could not touch the Q1 figures, it was still an impressive recovery.

The pre-tax income of the company for Q3 stood at 131.3 billion yen ($1.3 billion).

Considering the nine-month period, the net revenue of the company soared to 1.23 trillion yen ($11.9 billion), a jump of 17 percent from the same period last year. The pre-tax income came in at 396.8 billion yen ($3.8 billion).

Exceptional Results across All Divisions

Nomura’s business can be categorized into three divisions: retail, asset management and wholesale, which can again be further divided into Japanese and international businesses. The company has seen revenue and income jump across all divisions.

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For retail, the Q3 pre-tax income with 28.3 billion yen achieved a three-year high. This was a 24 percent jump from the previous quarter’s income and 61 percent higher year-on-year. The net revenue from this department came in at 98.2 billion yen, which is a 6 percent and 9 percent jump on a quarterly and yearly basis, respectively.

With 37.3 billion yen in net revenue, the asset management division soared by 39 percent on a quarterly and 47 percent on a yearly basis, along with a pre-tax income of 22.3 billion yen, which is 140 percent higher year-on-year. According to Nomura, this division’s net revenue and pretax income were at the strongest level in nineteen years.

Coming to the wholesale division, the revenue gained only 1 percent quarter-on-quarter, but 20 percent year-on-year. The pre-tax income of 76.9 billion yen from this unit is 78 percent higher than the previous quarter’s corresponding quarter.

Commenting on the impressive results, Nomura’s President and Group CEO, Kentaro Okuda, said: “We reported our strongest results for the April to December period in 19 years. Our Wholesale business remained robust, and we continued to diversify our revenue drivers. Retail delivered a resilient performance, while assets under management in Asset Management reached a record high. As a result of our ongoing efforts to control costs, we are well-positioned to deliver consistent earnings across our global franchise.”

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