Nomura triples earnings in Q1 on wealth management gains
Nomura Holdings, Japan’s largest brokerage and investment bank, reported a 195% jump in first-quarter profit yesterday as the rally in global markets and return of domestic inflation bolstered demand for its wealth management services.
The results show the progress Nomura has made in shifting toward a fees-based profit model in order to secure more consistent revenue that is less subject to market swings.
Nomura said net profit in the AprilJune period was ¥68.9 billion (RM2.06 billion) versus ¥23.3 billion a year earlier.
The end of deflation in Japan has encouraged retail clients to move into investment products, Nomura’s chief financial officer Takumi Kitamura told a media briefing.
“The major update to our business structure since last spring and the shift in our customers’ mindset from savings to investment has meant we were able to achieve strong results,” Kitamura said.
Alongside this, the global market rally led to improved client sentiment and higher sales of US and global stock funds, Nomura said.
Pre-tax income in the wealth management segment grew 84% compared to the same period the previous year to reach its highest since the 2015/16 financial year.
Nomura has a dominant position in wealth management in Japan and the business accounted for roughly half its pre-tax profit in the previous financial year.
Inflows into Nomura’s investment management business pushed assets under management to a record ¥92.5 trillion while its wholesale business grew revenue by 28% compared to the same period previously.
Investment banking was strong in Japan due to a series of delistings, business reorganisations and cross-border transactions. However international deals slowed. – Reuters