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Nomura records massive profit leap in first quarter

Nomura records massive profit leap in first quarter

(31 July 2015 – Japan) Nomura Holdings Inc.’s first quarter profit climbed more than triple with net income climbing to ¥68.7 billion (A$759 million) from ¥19.9 billion a year earlier,

The bank said in a statement on 29 July that brokerage commissions and investment banking fees had outweighed a drop in trading income.

Nomura chief executive Koji Nagai had implemented his strategy of enticing more people to invest their savings.

Nomura sold its shares for Toyota Motor Corp and Sony Corp and in the current quarter is also managing an initial public offering for Japan Post Holdings Co.

Revenue rose 10 percent in the quarter from a year earlier to ¥508.4 billion, the report showed.

Brokerage commissions jumped 36 percent to ¥130.3 billion, and investment banking fees climbed 24 percent to ¥24.5 billion.

Asset management fees rose 30 percent to ¥59.9 billion.

Trading profit fell 21 percent to ¥124.7 billion as fixed-income business slowed amid a decline in liquidity, the company said.

The firm posted a pretax profit of ¥2.7 billion from operations abroad, compared with a loss of ¥17.1 billion a year earlier.

Nomura is receiving ¥22.5 billion in fees from Toyota for exclusively selling ¥500 billion of shares for the automaker, its biggest equity underwriting deal.

The firm led Sony’s ¥300 billion share sale in July, and is coordinating IPOs by Japan Post and its banking and insurance units scheduled for later this year.

Nagai is seeking to increase client assets under management to ¥150 trillion by March 2020 from ¥114.9 trillion in May.

Almost half of Nomura’s pretax profit came from its retail securities business last fiscal year, driving a third year of earnings growth.

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