Nomura 2022 Net Income Falls 35% Amid Market Volatility, Geopolitical Risks

Wednesday, 26/04/2023 | 07:48 GMT by Damian Chmiel
  • Overall revenues were higher, but the net metrics fell yearly and quarterly.
  • Nomura refers to a volatile market and heightened geopolitical risk.
Nomura

Nomura, the global financial services group, has announced its latest financial results for the fourth quarter and the full fiscal year ended March 2023, showing a decrease in net revenues in both reported periods.

The yearly revenue fell 2% year-over-year (YoY) to JPY 1,335.6 billion ($10.1 billion), while quarterly results were 17% lower and came in at JPY 324.9 billion ($2.4 billion).

Nomura Reports Lower 2022 Metrics

Although the company's total revenue turned out to be 56% higher YoY, coming in at JPY 2,486.7 billion, net revenue recorded a modest decline. On the other hand, net income attributable to Nomura Holdings Inc. shareholders fell 35.1% YoY and was ranked at JPY 92.78 billion against JPY 143 billion in 2022.

Kentaro Okuda, Nomura's President and Group CEO, stated: "We reported net revenue of 1,335.6 billion yen and net income of 92.8 billion yen for the full year, both representing a year-on-year decline amid volatile markets due to heightened geopolitical risks, inflation and central bank monetary policy tightening."

Nomura's retail sector reported net revenue of JPY 75.3 billion, which is down 7% quarter-over-quarter (QoQ) and up 7% YoY. Income before taxes ranked at JPY 9.8 billion, growing 89% YoY. In addition, the Investment Management division increased its net revenue YoY to JPY 37.8 billion, which is up nearly 400%.

Wholesale was the worst performer, with a net loss reaching JPY 14.2 billion, which underperformed 5% QoQ and 8% YoY.

Nomura's Retail, Investment Management and Wholesale divisions results. Source: Nomura
Nomura's Retail, Investment Management and Wholesale divisions results. Source: Nomura

Q4 Also Worse for Nomura

According to Nomura's report, a more substantial depreciation was seen in Q4 results alone, with net revenue falling 17% QoQ to JPY 324.9 billion ($2.4 billion) and 5% YoY simultaneously.

Before accounting for income taxes, revenue amounted to 22.7 billion yen (US$171 million), and net income attributed to Nomura Holdings shareholders totaled 7.4 billion yen (US$56 million). The diluted earnings per share for Nomura Holdings shareholders stood at 2.34 yen.

"As we navigate the changing market environment, we remain committed to meeting the diverse needs of our customers and delivering sustainable growth," Okuda added.

Nomura's Komainu Helps GCEX to Expand Crypto Custody Offering

GCEX, a prime brokerage specializing in digital services for foreign exchange (FX) and crypto, has revealed its latest collaboration with Komainu, a joint venture involving Nomura and two major digital assets firms. Through this partnership, GCEX's institutional clients will have access to a wider range of regulated custodians.

According to a press release shared with Finance Magnates, the announcement was made in February. Komainu, which was established in partnership with CoinShares, a digital asset investment manager, and Ledger, a crypto hardware technology company, will help GCEX enhance its current offerings and expand its support for 5,700 tokens running across 34 native blockchains.

Back in December, Nomura announced its plans to open a new branch at the Dubai International Financial Centre (DIFC). A presence in DIFC will allow the expansion of Nomura's International Wealth Management in the Middle East. Meanwhile, Nomura has established a new enterprise in Switzerland called Laser Digital Holdings AG, with a focus on the cryptocurrency sector. Laser Digital aims to specialize in cryptocurrency venture capital, secondary trading, and investor products.

Nomura, the global financial services group, has announced its latest financial results for the fourth quarter and the full fiscal year ended March 2023, showing a decrease in net revenues in both reported periods.

The yearly revenue fell 2% year-over-year (YoY) to JPY 1,335.6 billion ($10.1 billion), while quarterly results were 17% lower and came in at JPY 324.9 billion ($2.4 billion).

Nomura Reports Lower 2022 Metrics

Although the company's total revenue turned out to be 56% higher YoY, coming in at JPY 2,486.7 billion, net revenue recorded a modest decline. On the other hand, net income attributable to Nomura Holdings Inc. shareholders fell 35.1% YoY and was ranked at JPY 92.78 billion against JPY 143 billion in 2022.

Kentaro Okuda, Nomura's President and Group CEO, stated: "We reported net revenue of 1,335.6 billion yen and net income of 92.8 billion yen for the full year, both representing a year-on-year decline amid volatile markets due to heightened geopolitical risks, inflation and central bank monetary policy tightening."

Nomura's retail sector reported net revenue of JPY 75.3 billion, which is down 7% quarter-over-quarter (QoQ) and up 7% YoY. Income before taxes ranked at JPY 9.8 billion, growing 89% YoY. In addition, the Investment Management division increased its net revenue YoY to JPY 37.8 billion, which is up nearly 400%.

Wholesale was the worst performer, with a net loss reaching JPY 14.2 billion, which underperformed 5% QoQ and 8% YoY.

Nomura's Retail, Investment Management and Wholesale divisions results. Source: Nomura
Nomura's Retail, Investment Management and Wholesale divisions results. Source: Nomura

Q4 Also Worse for Nomura

According to Nomura's report, a more substantial depreciation was seen in Q4 results alone, with net revenue falling 17% QoQ to JPY 324.9 billion ($2.4 billion) and 5% YoY simultaneously.

Before accounting for income taxes, revenue amounted to 22.7 billion yen (US$171 million), and net income attributed to Nomura Holdings shareholders totaled 7.4 billion yen (US$56 million). The diluted earnings per share for Nomura Holdings shareholders stood at 2.34 yen.

"As we navigate the changing market environment, we remain committed to meeting the diverse needs of our customers and delivering sustainable growth," Okuda added.

Nomura's Komainu Helps GCEX to Expand Crypto Custody Offering

GCEX, a prime brokerage specializing in digital services for foreign exchange (FX) and crypto, has revealed its latest collaboration with Komainu, a joint venture involving Nomura and two major digital assets firms. Through this partnership, GCEX's institutional clients will have access to a wider range of regulated custodians.

According to a press release shared with Finance Magnates, the announcement was made in February. Komainu, which was established in partnership with CoinShares, a digital asset investment manager, and Ledger, a crypto hardware technology company, will help GCEX enhance its current offerings and expand its support for 5,700 tokens running across 34 native blockchains.

Back in December, Nomura announced its plans to open a new branch at the Dubai International Financial Centre (DIFC). A presence in DIFC will allow the expansion of Nomura's International Wealth Management in the Middle East. Meanwhile, Nomura has established a new enterprise in Switzerland called Laser Digital Holdings AG, with a focus on the cryptocurrency sector. Laser Digital aims to specialize in cryptocurrency venture capital, secondary trading, and investor products.

About the Author: Damian Chmiel
Damian Chmiel
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Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.

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