Nomura books net income of JPY138.6bn in Q2 FY2019/20

Maria Nikolova

Nomura President and Group CEO Koji Nagai attributed the rise in gross profit to the sale of part of Nomura Holdings’ stake in Nomura Research Institute.

Nomura Holdings Inc (TYO:8604) has earlier today posted its consolidated financial results for the second quarter and first half of the fiscal year ending March 31, 2020.

Net revenue for the quarter to end-September 2019 was 383.4 billion yen (US$3.5 billion), up 15% from the preceding quarter and up 36% from the corresponding period a year earlier. Income before income taxes increased 72% from the first quarter and 275.1 times compared to the second quarter a year earlier to 128.5 billion yen (US$1.2 billion). Net income attributable to Nomura Holdings shareholders was 138.6 billion yen (US$1.3 billion). Diluted net income attributable to Nomura Holdings shareholders per share was 41.23 yen.

For the six months to end-September 2019, Nomura reported net revenue of 715.4 billion yen (US$6.6 billion), up 29% from the same period last year. During the first half of FY2019/20, income before income taxes increased 14.4 times to 203.3 billion yen (US$1.9 billion), and net income attributable to Nomura Holdings shareholders was 194.4 billion yen (US$1.8 billion). Diluted net income attributable to Nomura Holdings shareholders per share was 57.66 yen.

Nomura President and Group CEO Koji Nagai commented:

“Our international business reported its second straight quarter of pretax profit as a result of our successful efforts to realign our business portfolio and lower our cost base. Group profit increased significantly from the previous quarter underpinned by the sale of part of our stake in Nomura Research Institute”.

“Core business performance slowed amid US-China trade friction and heightened geopolitical risk which saw challenging market conditions continue. In Retail, total sales declined as investor sentiment worsened and we focused on rebuilding our retail sales structure by reassigning our sales staff and integrating branch offices. Wholesale booked lower Fixed Income revenues compared to a strong previous quarter, while Equities and Investment Banking delivered a robust performance. Asset Management reported its thirteenth consecutive quarter of inflows and asset management fees remained solid”, he added.

At the end of September 2019, Nomura had total assets of 45.7 trillion yen and shareholders’ equity of 2.7 trillion yen. Nomura’s Tier 1 capital ratio was 18.4 percent and CET1 capital ratio was 17.3 percent under Basel III.

For the first half of the current fiscal year, Nomura has declared a dividend of 15 yen per share to shareholders of record as of September 30, 2019. The dividend is scheduled to be paid on December 2, 2019.

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