Nomura
Holdings, Inc., Japan’s largest brokerage and investment bank, reported a
robust first quarter for the fiscal year 2025 (FY25), with net income more than
tripling year-on-year (YoY) to 68.9 billion yen ($428 million).
The
company’s three core business segments posted a combined pretax income of 86.6
billion yen, up 12% from the previous quarter and three times higher than the
same period last year. This marks the fifth consecutive quarter of growth for
these segments.
Nomura’s
Wealth Management division recorded its best quarterly performance in nine
years, with pretax income surging 84% YoY to 42.3 billion yen. The division’s
success was attributed to record-high recurring revenue assets and recurring
revenue, driven by a segment-based approach to client services.
Kentaro Okuda, Nomura’s President and Group CEO
“Our
Wealth Management business had its best quarter in nine years as our
segment-based approach drove recurring revenue assets and recurring revenue to
a record high,” said Kentaro Okuda, Nomura’s President and Group CEO.
The
Investment Management division also saw significant growth, with assets under
management reaching an all-time high of 92.5 trillion yen. Pretax income for
this segment jumped to 23.2 billion yen, a 6.4-fold increase from the previous
year. Notably, alternative assets under management surpassed 2 trillion yen,
reflecting the company’s expanding presence in private markets.
Wholesale
division revenues remained strong, with pretax income increasing 3%
quarter-on-quarter to 21.1 billion yen, despite a slowdown in Investment
Banking due to fewer executed deals and seasonal factors in Japan. The
division’s performance was bolstered by solid results in Spread Products and
Equities .
Nomura
reported earnings per share of 22.36 yen, up 24% from the previous quarter and
three times higher than the same period last year. The company’s return on
equity (ROE) for the first quarter stood at 8.1%.
Looking
ahead, Okuda emphasized the company’s commitment to its global strategy,
stating, “We will continue to intensify our global strategy leveraging our
Japan franchise to consistently achieve ROE of 8 to 10 percent or more.”
Several
months ago, Bloomberg reported that the company led by Okuda has set an
ambitious financial target for the coming years. The goal is to reach a pre-tax
income of over 500 billion yen (approximately $3.2 billion) by the end of March
2031.
Personnel Changes and
Strategic Investments
In recent
developments, Nomura has brought on board a new Chief Economist for Developed
Markets, David Seif. The appointee, who has a doctoral degree, brings more than 15 years of
experience in macroeconomic research from prominent hedge funds. According to
official statements, the new economist will be stationed in New York and will
report directly to the heads of Global Macro Research and US Fixed Income
Research.
Simultaneously,
the company has bolstered its rates trading capabilities in the Europe, Middle
East, and Africa (EMEA) region. A new Head of EMEA Flow Rates, Hemish Shah, has been
appointed, bringing over 15 years of expertise in the rates market. The new
hire previously held a senior position at a major German bank, overseeing
European government bonds, bond derivatives, and Euro inflation trading.
Earlier
this year, Nomura established a new subsidiary aimed at consolidating its
public and private credit offerings for institutional clients in the Americas.
The CEO of this new entity stated, “NCM was created to tap into growing
demand from US institutional and intermediary investors for credit market
expertise.”
Nomura
Holdings, Inc., Japan’s largest brokerage and investment bank, reported a
robust first quarter for the fiscal year 2025 (FY25), with net income more than
tripling year-on-year (YoY) to 68.9 billion yen ($428 million).
The
company’s three core business segments posted a combined pretax income of 86.6
billion yen, up 12% from the previous quarter and three times higher than the
same period last year. This marks the fifth consecutive quarter of growth for
these segments.
Nomura’s
Wealth Management division recorded its best quarterly performance in nine
years, with pretax income surging 84% YoY to 42.3 billion yen. The division’s
success was attributed to record-high recurring revenue assets and recurring
revenue, driven by a segment-based approach to client services.
Kentaro Okuda, Nomura’s President and Group CEO
“Our
Wealth Management business had its best quarter in nine years as our
segment-based approach drove recurring revenue assets and recurring revenue to
a record high,” said Kentaro Okuda, Nomura’s President and Group CEO.
The
Investment Management division also saw significant growth, with assets under
management reaching an all-time high of 92.5 trillion yen. Pretax income for
this segment jumped to 23.2 billion yen, a 6.4-fold increase from the previous
year. Notably, alternative assets under management surpassed 2 trillion yen,
reflecting the company’s expanding presence in private markets.
Wholesale
division revenues remained strong, with pretax income increasing 3%
quarter-on-quarter to 21.1 billion yen, despite a slowdown in Investment
Banking due to fewer executed deals and seasonal factors in Japan. The
division’s performance was bolstered by solid results in Spread Products and
Equities .
Nomura
reported earnings per share of 22.36 yen, up 24% from the previous quarter and
three times higher than the same period last year. The company’s return on
equity (ROE) for the first quarter stood at 8.1%.
Looking
ahead, Okuda emphasized the company’s commitment to its global strategy,
stating, “We will continue to intensify our global strategy leveraging our
Japan franchise to consistently achieve ROE of 8 to 10 percent or more.”
Several
months ago, Bloomberg reported that the company led by Okuda has set an
ambitious financial target for the coming years. The goal is to reach a pre-tax
income of over 500 billion yen (approximately $3.2 billion) by the end of March
2031.
Personnel Changes and
Strategic Investments
In recent
developments, Nomura has brought on board a new Chief Economist for Developed
Markets, David Seif. The appointee, who has a doctoral degree, brings more than 15 years of
experience in macroeconomic research from prominent hedge funds. According to
official statements, the new economist will be stationed in New York and will
report directly to the heads of Global Macro Research and US Fixed Income
Research.
Simultaneously,
the company has bolstered its rates trading capabilities in the Europe, Middle
East, and Africa (EMEA) region. A new Head of EMEA Flow Rates, Hemish Shah, has been
appointed, bringing over 15 years of expertise in the rates market. The new
hire previously held a senior position at a major German bank, overseeing
European government bonds, bond derivatives, and Euro inflation trading.
Earlier
this year, Nomura established a new subsidiary aimed at consolidating its
public and private credit offerings for institutional clients in the Americas.
The CEO of this new entity stated, “NCM was created to tap into growing
demand from US institutional and intermediary investors for credit market
expertise.”
