Nomura Holdings has released financial results for the fourth quarter and full-year ended March 2024, highlighting a surge in net
revenue and income. Despite the growing interest rates in the Japanese markets, Nomura
reported an upsurge of 123% year-on-year in pretax income at Y236.8 billion.
The revenue for retail, investment management, and
wholesale segments was ¥ 402.4 billion, ¥ 154.1 billion, and ¥ 866.1 billion,
respectively. Nomura’s retail division achieved the highest pretax income in eight years. This upward trend was boosted by stable recurring revenue in the
segment.
Revenue Growth across Business Segments
Speaking about the financial report,
Nomura‘s President and Group CEO Kentaro Okuda mentioned: “We reported higher net
revenue and pretax income in all business segments, demonstrating the strength
of our Japan client franchise and global network amid growing interest in the
Japanese markets.”
“We delivered a solid performance across
divisions and regions. In retail, this was underpinned by the successful
realignment of our people at the start of the fiscal year, while Wholesale
booked a marked increase in Investment Banking revenues.”
Nomura’s investment management segment experienced a
boost in net inflows totaling ¥3.8 trillion, with assets
under management worth ¥89 trillion. The investment banking segment achieved its highest
net revenue since fiscal years 2016 and 2017. Besides that, the global markets division jumped by 8% year-on-year in net revenue driven by
spread and equity products.
Following the positive financial performance, Nomura
has declared a year-end dividend of 15 yen per share, culminating in an annual
dividend of 23 yen. The company posted a return on equity of 5.1%.
Nomura Maintains Strong Performance
In the third quarter, Nomura recorded an increase of 11%
in net revenue and a surge in income before taxes. Consolidated net
revenue for Q3 reached 400.2 billion yen, representing a rise of 9% from the
previous quarter and an uptick of 2% YoY. This growth was complemented by an expansion of 39% in
income before taxes compared to the preceding quarter, amounting to 78.7
billion yen.
For the nine months ending in December last year,
Nomura recorded a boost in net revenue, climbing to 1,116.9 billion yen.
Income before taxes soared by 43% to 181.8 billion yen, while net income
attributable to shareholders rose by 28% to 109.1 billion yen.
Despite its achievements, Nomura faces challenges,
including investigations into certain transactions. The US Securities and Exchange Commission is scrutinizing B. Riley’s involvement in the acquisition
of Franchise Group Inc., a deal that was partly funded by Nomura Holdings Inc.
This article was written by Jared Kirui at www.financemagnates.com.
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