Nomura Holdings has released financial results for the fourth quarter and full-year ended March 2024, highlighting a surge in net revenue and income. Despite the growing interest rates in the Japanese markets, Nomura reported an upsurge of 123% year-on-year in pretax income at ¥236.8 billion.

The revenue for retail, investment management, and wholesale segments was ¥ 402.4 billion, ¥ 154.1 billion, and ¥ 866.1 billion, respectively. Nomura's retail division achieved the highest pretax income in eight years. This upward trend was boosted by stable recurring revenue in the segment.

Revenue Growth across Business Segments

Speaking about the financial report, Nomura's President and Group CEO Kentaro Okuda mentioned: "We reported higher net revenue and pretax income in all business segments, demonstrating the strength of our Japan client franchise and global network amid growing interest in the Japanese markets."

"We delivered a solid performance across divisions and regions. In retail, this was underpinned by the successful realignment of our people at the start of the fiscal year, while Wholesale booked a marked increase in Investment Banking revenues."

Nomura's investment management segment experienced a boost in net inflows totaling ¥3.8 trillion, with assets under management worth ¥89 trillion. The investment banking segment achieved its highest net revenue since fiscal years 2016 and 2017. Besides that, the global markets division jumped by 8% year-on-year in net revenue driven by spread and equity products.

Following the positive financial performance, Nomura has declared a year-end dividend of ¥15 per share, culminating in an annual dividend of ¥23. The company posted a return on equity of 5.1%.

Nomura Maintains Strong Performance

In the third quarter, Nomura recorded an increase of 11% in net revenue and a surge in income before taxes. Consolidated net revenue for Q3 reached ¥400.2 billion, representing a rise of 9% from the previous quarter and an uptick of 2% YoY. This growth was complemented by an expansion of 39% in income before taxes compared to the preceding quarter, amounting to ¥78.7 billion.

For the nine months ending in December last year, Nomura recorded a boost in net revenue, climbing to ¥1,116.9 billion. Income before taxes soared by 43% to ¥181.8 billion, while net income attributable to shareholders rose by 28% to ¥109.1 billion.

Despite its achievements, Nomura faces challenges, including investigations into certain transactions. The US Securities and Exchange Commission is scrutinizing B. Riley's involvement in the acquisition of Franchise Group Inc., a deal that was partly funded by Nomura Holdings Inc.