In This Article:
-
Net Revenue: JPY483.3 billion, a 6% increase quarter-on-quarter.
-
Income Before Income Taxes: JPY133 billion, up 29% quarter-on-quarter.
-
Net Income: JPY98.4 billion, a 43% increase from the previous quarter.
-
Earnings Per Share (EPS): JPY32.26.
-
Annualized Return on Equity (ROE): 11.6%.
-
Dividend Per Share: JPY23 with a payout ratio of 40.6%.
-
Wealth Management Net Revenue: JPY116.7 billion, a 2% increase quarter-on-quarter.
-
Investment Management Net Revenue: JPY56.1 billion, up 18% quarter-on-quarter.
-
Global Markets Net Revenue: JPY221.1 billion, a 6% increase quarter-on-quarter.
-
Investment Banking Net Revenue: JPY42.3 billion, up 14% quarter-on-quarter.
-
Group-wide Expenses: JPY350.3 billion, roughly flat quarter-on-quarter.
-
Tier 1 Capital: JPY3.4 trillion.
-
Common Equity Tier 1 Ratio: 15.7%.
Release Date: November 01, 2024
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 6% increase in group-wide net revenue quarter-on-quarter, reaching JPY483.3 billion.
-
Income before income taxes grew by 29% to JPY133 billion, marking the highest level since June 2020.
-
Net income increased by 43% to JPY98.4 billion, with an EPS of JPY32.26 and an annualized ROE of 11.6%, exceeding the company's 2030 target.
-
The wealth management segment achieved a 30% increase in recurring revenue, with net inflows of recurring revenue assets surpassing the annual target.
-
The wholesale division saw an 8% increase in net revenue, with a significant improvement in the cost-to-income ratio to 83%.
Negative Points
-
Market volatility in August led to a decline in total sales by JPY900 billion, although this was partly due to a large tender offer in the previous quarter.
-
Despite strong performance, the company faces intense competition in ECM deals, which could impact future sustainability.
-
The asset management business experienced a dip in assets under management at the end of September due to market factors.
-
The company decided against a share buyback, citing the need to evaluate the impact of Basel III and other considerations.
-
October saw a slowdown in wealth management and wholesale activities due to political events and market uncertainties.
Q & A Highlights
Q: Are the strong performances in Japan's ECM deals and Asia's wealth management sustainable? What is your forecast for the months and years ahead? A: Takumi Kitamura, CFO: In Japan, we have a strong pipeline of ECM deals, including large transactions. We are actively pitching to maintain our position despite intense competition. In Asia, we have diversified our revenue sources, with strength in equity derivatives and International Wealth Management, which should sustain performance. The recent boost from Chinese and Hong Kong equities was more about our diversified revenue sources than just market conditions.