Nomura's Q3 Earnings Beat Estimates with 11% Revenue Growth

by Damian Chmiel
  • The company saw an increase of 39% in income before taxes.
  • Despite the growth, Nomura faces a annual decline of 6%, reflecting market complexities.
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The third quarter of the fiscal year ending March 2024 (FY24) saw a notable upturn in Nomura Holdings' financials. The company has demonstrated significant growth by reporting a quarterly increase in net revenue, totaling 400.2 billion yen ($2.8 billion), and a rise of 39% in income before taxes from the last quarter, reaching 78.7 billion yen ($558 million),

Despite these gains, there was a yearly decline of 6% in income before taxes, underscoring the complex dynamics of the current financial market.

Nomura Reports Q3 Financial Growth

The company's consolidated net revenue for the third quarter stood at 400.2 billion yen (S$2.8 billion), marking an incline of 9% from the previous quarter and a slight improvement of 2% year-on-year (YoY). This was paralleled by a notable escalation of 39% in income before income taxes compared to the last quarter, amounting to 78.7 billion yen ($558 million). However, this represents a decrease of 6% YoY. Despite these fluctuations, Nomura's net income attributable to shareholders showed an uptick of 43% quarter-on-quarter (QoQ), reaching 50.5 billion yen (US$358 million).

For the nine months ending in December, Nomura's net revenue climbed to 1,116.9 billion yen (S$7.9 billion), an increase of 11% from the previous year. Before taxes, income surged 43% to 181.8 billion yen (S$1.3 billion), with net income attributable to shareholders rising by 28% to 109.1 billion yen (US$774 million).

The results confirm Nomura's earlier reports published last year. For the six-month period ending 30 September 2023, the company's pretax profit grew by 118%, driven by revenue diversification. In the second quarter of FY24, Nomura reported record results regarding assets and retail trading .

Source: Nomura
Source: Nomura

Strong Performance Across Divisions

The Retail division reported a net revenue of 102.6 billion yen, an increase of 4% QoQ and a significant escalation of 27% YoY. Income before taxes in this segment grew 10% from the previous quarter and an impressive 141% from last year, amounting to 31.9 billion yen. This surge was attributed to effective staff realignment and favorable market conditions.

Despite a quarterly decrease in net revenue of 14% and a YoY drop of 32%, Nomura's Investment Management division achieved a record high in assets under management at 78.5 trillion yen. Ongoing inflows and market factors bolstered this.

The Wholesale division exhibited an increase of 6% QoQ and 15% YoY in net revenue, totaling 217 billion yen. Income before income taxes in this division showed a substantial improvement of 178% from the previous quarter.

Strategic Focus and Share Repurchase Plan

Under the leadership of Kentaro Okuda, Nomura's President and Group CEO, the company has emphasized disciplined cost control and investment in growth potential areas. The strategic focus on tailoring products and services to meet diverse investor needs, especially in the Japanese market, has been a key driver of Nomura's latest results.

Moreover, the company has approved a resolution to repurchase up to 100 billion yen of Nomura Holdings common shares.

Despite successes, some challenges have arisen, too. The US Securities and Exchange Commission is investigating B. Riley's involvement in the acquisition of Franchise Group Inc). This transaction was managed by a person connected to the downfall of the Prophecy Asset Management hedge fund and was partly funded by Nomura Holdings Inc.

The third quarter of the fiscal year ending March 2024 (FY24) saw a notable upturn in Nomura Holdings' financials. The company has demonstrated significant growth by reporting a quarterly increase in net revenue, totaling 400.2 billion yen ($2.8 billion), and a rise of 39% in income before taxes from the last quarter, reaching 78.7 billion yen ($558 million),

Despite these gains, there was a yearly decline of 6% in income before taxes, underscoring the complex dynamics of the current financial market.

Nomura Reports Q3 Financial Growth

The company's consolidated net revenue for the third quarter stood at 400.2 billion yen (S$2.8 billion), marking an incline of 9% from the previous quarter and a slight improvement of 2% year-on-year (YoY). This was paralleled by a notable escalation of 39% in income before income taxes compared to the last quarter, amounting to 78.7 billion yen ($558 million). However, this represents a decrease of 6% YoY. Despite these fluctuations, Nomura's net income attributable to shareholders showed an uptick of 43% quarter-on-quarter (QoQ), reaching 50.5 billion yen (US$358 million).

For the nine months ending in December, Nomura's net revenue climbed to 1,116.9 billion yen (S$7.9 billion), an increase of 11% from the previous year. Before taxes, income surged 43% to 181.8 billion yen (S$1.3 billion), with net income attributable to shareholders rising by 28% to 109.1 billion yen (US$774 million).

The results confirm Nomura's earlier reports published last year. For the six-month period ending 30 September 2023, the company's pretax profit grew by 118%, driven by revenue diversification. In the second quarter of FY24, Nomura reported record results regarding assets and retail trading .

Source: Nomura
Source: Nomura

Strong Performance Across Divisions

The Retail division reported a net revenue of 102.6 billion yen, an increase of 4% QoQ and a significant escalation of 27% YoY. Income before taxes in this segment grew 10% from the previous quarter and an impressive 141% from last year, amounting to 31.9 billion yen. This surge was attributed to effective staff realignment and favorable market conditions.

Despite a quarterly decrease in net revenue of 14% and a YoY drop of 32%, Nomura's Investment Management division achieved a record high in assets under management at 78.5 trillion yen. Ongoing inflows and market factors bolstered this.

The Wholesale division exhibited an increase of 6% QoQ and 15% YoY in net revenue, totaling 217 billion yen. Income before income taxes in this division showed a substantial improvement of 178% from the previous quarter.

Strategic Focus and Share Repurchase Plan

Under the leadership of Kentaro Okuda, Nomura's President and Group CEO, the company has emphasized disciplined cost control and investment in growth potential areas. The strategic focus on tailoring products and services to meet diverse investor needs, especially in the Japanese market, has been a key driver of Nomura's latest results.

Moreover, the company has approved a resolution to repurchase up to 100 billion yen of Nomura Holdings common shares.

Despite successes, some challenges have arisen, too. The US Securities and Exchange Commission is investigating B. Riley's involvement in the acquisition of Franchise Group Inc). This transaction was managed by a person connected to the downfall of the Prophecy Asset Management hedge fund and was partly funded by Nomura Holdings Inc.

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