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Nomura Holdings Inc (NMR) (FY 2025) Earnings Call Highlights: Record Net Income and Strategic ...

In This Article:

  • Group Net Revenue: Increased 21% year-on-year to JPY1,892.5 billion.

  • Income Before Income Taxes: Grew 72% to JPY472 billion.

  • Net Income: Doubled to a record high of JPY340.7 billion.

  • Earnings Per Share (EPS): JPY11.03.

  • Return on Equity (ROE): 10%.

  • Dividend: Total year-end dividend of JPY34 per share, annual dividend of JPY57 per share, payout ratio of 49%.

  • Share Buyback Program: Upper limit of 100 million shares, aggregate repurchase price limit of JPY60 billion.

  • Fourth Quarter Group Net Revenue: Fell 10% to JPY452.7 billion.

  • Fourth Quarter Income Before Income Taxes: Fell 29% to JPY97.7 billion.

  • Fourth Quarter Net Income: Down 29% to JPY72 billion.

  • Fourth Quarter Earnings Per Share (EPS): JPY23.39.

  • Wealth Management Net Revenue: Fell 10% to JPY104.5 billion in Q4.

  • Investment Management Net Revenue: Down 6% to JPY43 billion in Q4.

  • Wholesale Net Revenue: Fell 11% to JPY259.2 billion in Q4.

  • Assets Under Management: JPY89.3 trillion at the end of March.

  • Tier One Capital Ratio: 16.2% at the end of March.

  • Common Equity Tier 1 Ratio: 14.5% at the end of March.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Nomura Holdings Inc (NYSE:NMR) reported a 21% year-on-year increase in group net revenue, reaching JPY1,892.5 billion.

  • Income before income taxes grew by 72% to JPY472 billion, with net income doubling to a record high of JPY340.7 billion.

  • The company achieved an 11-year high in wealth management income before income taxes and a 15-year high in wholesale.

  • Nomura Holdings Inc (NYSE:NMR) announced a share buyback program with an upper limit of 100 million shares, valued at JPY60 billion.

  • The company exceeded its KPI targets in wealth management, with net inflows of recurring revenue assets sharply surpassing the target.

Negative Points

  • Group net revenue fell 10% quarter-on-quarter to JPY452.7 billion, with income before income taxes dropping 29% to JPY97.7 billion.

  • Fixed income revenues in the wholesale segment slowed, with a 24% decline in net revenue to JPY105.8 billion.

  • The company's cost to income ratio in the wholesale segment was high at 84%, indicating room for improvement in cost management.

  • Investment management saw a decline in net revenue by 6% to JPY43 billion, with income before income taxes falling 18% to JPY15.5 billion.

  • Market conditions were challenging, with rising yen rates and a decline in the stock market impacting performance.

Q & A Highlights

Q: Global markets, particularly fixed income, seem weak compared to US peers. Can you elaborate on the business performance and the latest situation in April? A: Takumi Kitamura, CFO: Fixed income appears weak due to differences in product mix and regional focus. We don't engage in commodities, which some competitors do. In Japan, rising JCB rates created a challenging environment. Monthly performance showed a drop in March, with April's average below Q4 levels. We are cautious about liquidity and market conditions.