Nomura’s Net Revenue Declines 13% YoY in Q3 FY22

Japanese financial services giant, Nomura Holdings released its financial numbers for the third quarter of the fiscal year ending 31 March 2022 today. For the recent quarter, Nomura reported net revenue of 351 billion yen, which is 13% lower compared to the same period last year.

However, compared to the previous quarter, the number was up by almost 10%. Net income attributable to shareholders of Nomura came in at 60.3 billion yen ($525 million). For the nine months to December 2021, the Japanese firm posted a 17% drop in net revenues as the number reached 1,023 billion yen ($8.9 billion).

“Our efforts to diversify revenues and deliver consistent growth are starting to pay off. In the third quarter, we reported net revenue of 351 billion yen, up 10 percent from last quarter, and income before income taxes of 80.1 billion yen, a fourfold increase quarter on quarter,” said Nomura's President and Group CEO, Kentaro Okuda.

Nomura faced some challenges in 2021 after the financial services provider suffered heavy losses due to the US-based hedge fund.

Key Growth Areas

While providing details of the latest financial results, Okuda said that Nomura’s investment banking division has seen consistent growth in the last quarter. According to him, Nomura is committed to sustainable growth.

“Investment Banking had its best quarter since the year ended March 2017 when comparisons became possible, driven by cross-border M&A deals, sustainable finance mandates and synergies with Nomura Greentech. Investment Management saw continued global inflows across various channels, lifting assets under management to an all-time high. In Retail, we made progress toward a more stable revenue mix as higher recurring revenue assets drove growth in recurring revenue underpinned by our continued focus on the total assets of our clients,” Okuda added.

Nomura’s wholesale division booked third-quarter net revenue of 202.7 billion yen.