Nomura Sees Slow Down in Q2 Revenue, Income

Nomura Holdings, Inc., a Japanese financial services company, has published its financial results for the second quarter and the first half of the fiscal year 2021, showing a mixed performance across its various business units.

Nomura’s fiscal year ends on March 31, so the second quarter spans from July through September, and the first half begins from April.

Considering the quarterly figures first, the holding company’s net revenue declined by 20 percent quarter-on-quarter to ¥369 billion (around $3.5 billion). The previous quarter went exceptionally well for Nomura with net revenue of ¥460.7 billion (US$4.3 billion). Additionally, last quarter’s revenue declined by 4 percent year-on-year.

Pre-tax income for the quarter came in at ¥83.6 billion (~$792 million), down by 54 percent and 35 percent compared to the income in the previous quarter and the same quarter last year, respectively.

Net income attributed to Nomura shareholders was ¥67.6 billion (~$640 million). This figure is down by 53 percent quarter-on-quarter and 51 percent year-on-year.

Nomura’s revenue came from basically three business divisions: retail, asset management, and wholesale. While retail maintained its quarterly growth trend, the other two declined.

The retail business contributed ¥98.8 billion in Q2 of FY2021. It is an increase of 14 percent from the previous quarter’s numbers. Income from this division soared 51 percent quarter-on-quarter to ¥22.8 billion, 4.3 times more than the income generated in the same quarter the previous year.

On the other hand, asset management and wholesale business declined by 21 percent and 11 percent quarter-on-quarter, respectively. However, both these units showed significant growth on a year-on-year basis.

Half-Yearly Figures Remain Strong

Moving to the half-yearly numbers, Nomura’s business showed solid growth. The Group registered net revenue of ¥829.7 billion (~$7.9 billion) for the period, which is a year-on-year growth of 16 percent. Moreover, pre-tax income increased by 31 percent to ¥265.4 billion ($2.5 billion).

Notably, the wholesale division is seeing massive growth, mostly coming in from the international regions.

Nomura President and Group CEO, Kentaro Okuda said on the results: “Despite the continued uncertainty in the business environment due to the pandemic, we reported record high Group income before income taxes for the first half. Total pretax income for the three international regions was also a record high and accounted for more than 40 percent of firmwide results in the first half.”