Q2 2025 Nomura Holdings Inc Earnings Call Transcript
Key Points
- Nomura Holdings Inc (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%.
- 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.
Good day, everyone, and welcome to today's Nomura Holdings second quarter operating results for fiscal year ending March 2025 conference call. Please be reminded that today's conference call is being recorded at the request of the hosting company. Should you have any objections, you may disconnect at this point in time.
(Operator Instructions) Please note that this telephone conference contains certain forward-looking statements and other projected results, which involve known and unknown risks, delays, uncertainties, and other factors not under the company's control, which may cause actual results, performance or achievement of the company to be materially different from the results, performance, or other expectations implied by those projections.
Such factors include economic and market conditions, political events and investor sentiment, liquidity of secondary markets, level and the volatility of interest rates, currency exchange rates, security valuations, competitive conditions, and size, number and timing of transactions.
With that, we would like to begin the conference.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
