Japan’s largest investment bank and brokerage firmNomuraon Friday reported a record annual profit for the second year in a row and said there was no structural disruption from the Iran-Israel/US war on the growth factors for the domestic market.
“Markets have been favourable up to now, but there are various risk factors at present,” a Reuters report said, quoting Chief Financial Officer Hiroyuki Moriuchi. “For M&A and equity capital markets, some decision making may be held up, but looking at the mid- to long-term, the structural challenges facing Japanese companies, such as a declining population and overseas expansion aims, are unaffected by the situation in the Middle East,” Moriuchi said at a briefing.
Nomura reported a modest uptick in earnings for the January–March quarter, with net income rising 3% year-on-year to 73.9 billion yen ($462.6 million). For the full financial year, profits climbed to 362.1 billion yen compared to 340.7 billion yen in the previous year.
The Japanese brokerage continues to hold a strong foothold in the domestic wealth management space, supported by a steady stream of recurring fee income. Elevated market volatility during the quarter also boosted transaction-linked revenues.
Its wholesale segment—comprising investment banking and trading operations—delivered its strongest annual revenue performance since the division’s inception in April 2010.
Over the past few years, Nomura has been strategically pivoting towards building a more stable earnings base, with a greater emphasis on fee-driven businesses that are less exposed to swings in market conditions.
Also read: Steve Englander on US dollar, oil and the surprising market resilience
The Iran-Israel war, which started on February 28 after Israel launched strikes on Iran killing its top leadership, is now in an indefinite ceasefire after the warring sides failed to reach an agreement on contentious issues on both sides.
Nomura shares ended 1.5% lower at JPY 1,312 despite the Nikkei 225 closing 1% higher at 59,716.18, a 576-point rally over the Thursday close.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
(You can now subscribe to our ETMarkets WhatsApp channel)
