Nomura Holdings recently unveiled its financial performance for the fourth quarter and full-year ending March 2024, showcasing a remarkable surge in net revenue and income.
Despite the backdrop of increasing interest rates in the Japanese markets, Nomura reported an impressive 123% year-on-year surge in pretax income, totaling ¥236.8 billion.
The revenue across various segments depicted a robust picture, with retail, investment management, and wholesale segments generating ¥402.4 billion, ¥154.1 billion, and ¥866.1 billion respectively.
Notably, Nomura’s retail division marked its highest pretax income in eight years, propelled by stable recurring revenue.
In the words of Nomura’s President and Group CEO Kentaro Okuda, “We reported higher net revenue and pretax income in all business segments, demonstrating the strength of our Japan client franchise and global network amid growing interest in the Japanese markets.”
He further added, “We delivered a solid performance across divisions and regions.
“In retail, this was underpinned by the successful realignment of our people at the start of the fiscal year, while Wholesale booked a marked increase in Investment Banking revenues.”
The investment management segment witnessed a surge in net inflows totaling ¥3.8 trillion, with assets under management amounting to ¥89 trillion.
Additionally, the investment banking segment achieved its highest net revenue since fiscal years 2016 and 2017.
Furthermore, the global markets division experienced an 8% year-on-year increase in net revenue driven by spread and equity products.
In light of its positive financial trajectory, Nomura declared a year-end dividend of ¥15 per share, resulting in an annual dividend of ¥23.
The company also posted a return on equity of 5.1%.
Despite its notable achievements, Nomura confronts challenges, including ongoing investigations into certain transactions.
The US Securities and Exchange Commission is currently scrutinizing B. Riley’s involvement in the acquisition of Franchise Group Inc., a deal that was partially funded by Nomura Holdings Inc.