Nomura Sees Stagnated Operating Metrics in Second Quarter

Nomura Holdings Inc, Japan’s biggest investment banking and brokerage group, has reported its statistics and financial figures for the period ending September 30, 2017 (Q2 FY 2018), which took a slight step back relative to last quarter’s strong figures, ultimately part of an uneven year thus far, according to a Nomura report.

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For the July-September period, Nomura reported its net revenues at $3.08 billion (¥351 billion), reflective of a 3.0 percent pullback quarter-over-quarter from $3.17 billion (¥360.8 billion) set back in Q1 FY 2018. However, this figure corresponds to a year-over-year gain of just 1.0 percent, but largely remains stuck in a tight band that has continued during the last two years.

The primary factor behind the slight rise has been the performance of its asset management and retails segments, per the company filing. Additionally, assets under management climbed to record highs for the fourth straight quarter while its income before income tax was the strongest since 2002 as asset management fees rose and gains were booked related to American Century Investments.

The group’s net profit dropped to $457 million (¥51.9 billion) during the second quarter, down a sizable 15 percent drop from ¥61.1 in the same quarter a year ago. Across a quarter-over-quarter timetable, Nomura’s bottom line figure was also lower by 9.0 percent compared with ¥56.9 billion in the three months through June 2017.

In terms of its retail business, the firm reported net revenue of $896 million (¥101.8 million), up 0.1 percent quarter on quarter, and by 18 percent over last year. Revenue and income from this segment was roughly flat relative to Q1, but the strong performance over a yearly basis was bolstered by uptick in primary stock sales and bond trading. Retail client assets at quarter-end printed a new record high at ¥115.2 trillion.