Nomura’s Overseas Business Posts Fifth Straight Quarter of Profit

Investment Banking revenues slowed due to a drop-off in overall financing mandates.

Nomura Holdings Inc, Japan’s biggest investment banking and brokerage group, has reported its statistics and financial figures for the period ending June 30, 2017 (Q1 FY2018), which were highlighted by strong growth across the board relative to the year prior.

The group’s net profit rose to 360.8 billion yen during the first quarter, rebounding 6 percent from 338.5 billion yen in the same quarter a year ago. The primary culprit for the rise has been the strong performance of its asset management which saw net revenue advancing to 28.1 billion yen, up 21 percent quarter-on-quarter and 8 percent year-on-year.

Another area where Nomura saw a strong performance was across its net income attributable to shareholders, as the group yielded 56.9 billion yen, up 21.4 percent relative to 46.8 billion yen in Q1 FY 2017.

In terms of its retail business, the firm reported net revenue of 101.7 billion yen, down 1 percent quarter on quarter, but up 21 percent year on year.

According to Nomura, its overseas business, part of its wholesale division, posted a fifth straight quarter of profit overseas after the firm cut hundreds of jobs in Europe and the U.S. and also joined brokers in benefiting from a rebound in client activity in the latter half of the quarter.

Nomura Group CEO Koji Nagai commented on the results: “Our international business reported its fifth straight quarter of profits. Recurring revenue in our Retail business continued to grow as market conditions and investor sentiment improved. We saw stronger sales of equities in the secondary markets and investment trusts as well as ongoing net inflows into investment trusts and discretionary investments.”

He added: “In Wholesale, Investment Banking revenues slowed due to a drop-off in overall financing mandates. But Global Markets had a stronger quarter, underpinned by smart risk management in low volatility market conditions and an uptick in client activity.”

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