Q1 2025 Nomura Holdings Inc Earnings Call Transcript
Key Points
- Group-wide net revenue increased by 2% over the last quarter, reaching JPY454.4 billion.
- Pre-tax income grew by 12% to JPY102.9 billion, and net income rose by 21% to JPY68.9 billion.
- Wealth management and investment management saw client assets continue to grow, with stable recurring revenue and business revenue reaching all-time highs.
- Investment management net revenue increased by 9% to JPY47.7 billion, with income before income taxes up 31% at JPY23.2 billion.
- The asset management business had another strong quarter with net inflows lifting assets under management to a record high of JPY92.5 trillion.
- Wholesale net revenue slipped by 4% to JPY244.8 billion.
- Investment banking net revenue dropped by 25% from the strong prior quarter to JPY37.2 billion.
- Group-wide expenses remained roughly flat at JPY351.5 billion, with compensation and benefits increasing by 4% to JPY184.5 billion.
- EMEA region ended up in a loss position for the quarter.
- CET1 capital ratio decreased, raising concerns about capital efficiency and future financial stability.
Good evening. This is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the first quarter of the fiscal year ending March 2025.
Please turn to page 2. Group-wide net revenue came in at JPY454.4 billion, up 2% over last quarter. Pre-tax income grew 12% to JPY102.9 billion, while net income was JPY68.9 billion, an increase of 21% compared to last quarter.
As you can see on the upper right, our earnings momentum has continued for five consecutive quarters. EPS was JPY22.36 and annualized ROE 8.1%. These results make a good start in our journey toward achieving our 2030 numerical target to consistently achieve ROE of 8% to 10% or more, as announced at our Investor Day in May.
As shown on the bottom right, three segment income before income taxes increased 12% to JPY86.6 billion. Wealth management and investment management saw client assets continued to grow on the back of inflows, while stable recurring revenue and business revenue reached all-time
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