Nomura Reports Record-Breaking Quarter: Assets and Retail Trading Soar

Tokyo-based Nomura Holdings, Inc. disclosed today (Tuesday) its robust consolidated financial results for the first quarter of the fiscal year ending 31 March 2024. Displaying solid quarterly growth, the company cites its strategic initiatives and revenue diversification progress as key driving factors behind this performance.

Nomura Net Revenue Jumps 29% YoY

The first quarter yielded positive results for Nomura Holdings, with net revenue reaching JPY 348.9 billion ($2.4 billion) and pre-tax income at JPY 46.3 billion (S$320 million). Meanwhile, net income attributable to Nomura shareholders amounted to JPY 23.3 billion ($161 million), growing 29% year-over-year (YoY).

"First quarter net revenue was 348.9 billion yen and pre-tax income was 46.3 billion yen, both representing quarter-on-quarter increases underpinned by positive results from our strategic initiatives and revenue diversification progress," Kentaro Okuda, the President at Nomura, commented.

This is a significant improvement after full-year 2022 results published in April, when Nomura reported a 35% decline in net profit. At the time, it cited unfavorable market volatility and geopolitical risks, which also affected the financial results of other companies operating in global finance.

The company's Retail segment reported net revenue of JPY 92.1 billion, a significant increase both quarter-on-quarter (QoQ) and YoY. This outcome was largely due to stronger sales across all products and services due to reorganizing the company's teams. The reorganization also increased recurring revenue assets, reaching a record high of 20.3 trillion yen.

Simultaneously, Nomura's Investment Management division experienced an increase in stable revenues, and significant inflows brought the division's AuM to an impressive 76.1 trillion yen, marking a record high. While the investment gain/loss worsened due to the valuation markdown related to investment in American Century Investments (ACI), the asset management business overall showed growth, thanks to new mandates in Japan and international inflows into ETFs.

However, despite a slight YoY drop, the Wholesale division witnessed a rebound in performance compared to the previous quarter. Net revenue rose by 7% QoQ to JPY 190.9 billion, but pre-tax income fell 92% YoY to JPY 2.1 billion. Despite this, the segment showed growth in Credit globally, and improved performances in Americas Rates and Japan Equities. In addition, Advisory revenues in EMEA and the Americas bolstered the segment's revenues.

Summarizing the company's overall strategic direction, Okuda added, "We remain committed to meeting the diverse needs of our clients and delivering sustainable growth."

Nomura's New Hires

Recently, Nomura announced a series of new additions to their team. This includes Natasha Uberoi, appointed as the Head of eFX Sales for the Americas. Prior to this, she spent approximately seven years working with the FX Sales team at EBS BrokerTec, according to her LinkedIn profile.

Simultaneously, an experienced forex sales executive, Kevin Gillespie, has assumed a fresh position at Nomura's digital asset branch, Laser Digital. Nomura inaugurated Laser Digital in Switzerland in September of the previous year, with the subsidiary specializing in secondary trading, venture capital, and investor products.

In a further development, the leading investment bank and brokerage group enlisted Nat Tyce, an expert from Barclays, in June to spearhead its trading division in Europe, the Middle East, and Africa (EMEA). A memo viewed by Financial News revealed that Tyce would fulfill the Head of Global Markets role for EMEA.