Nomura (8604) Q1 2025 earnings summary

Executive summary

• Net revenue rose 30.2% year-over-year and 2% quarter-on-quarter to ¥454.4 billion, with net income up 195.5% year-over-year and 21% quarter-on-quarter to ¥68.9 billion; EPS was ¥22.36 and ROE reached 8.1%, marking the fifth consecutive quarter of earnings momentum.

• Income before income taxes increased 122.3% year-over-year and 12% quarter-on-quarter to ¥102.9 billion.

• All business lines reported higher revenues year-over-year, with Wealth Management and Investment Management achieving record results and Wholesale segment diversifying revenues.

• Comprehensive income grew 49.9% year-over-year to ¥189.3 billion.

Financial highlights

• Total assets increased to ¥59,741.1 billion as of June 30, 2024, up ¥4,593.9 billion from March 31, 2024.

• Non-interest expenses were ¥351.5 billion, up 16.2% year-over-year; compensation and benefits rose 4% mainly due to yen depreciation.

• Interest and dividends revenue grew 43.5% year-over-year to ¥788.6 billion.

• Basic EPS was ¥23.33, up 202.6% year-over-year.

Segment performance

• Wealth Management net revenue rose 23.8% year-over-year and 5% quarter-on-quarter to ¥114.0 billion, with income before income taxes up 84.2% year-over-year and 9% quarter-on-quarter to ¥42.3 billion, the highest in nine years; recurring revenue and assets at record highs.

• Investment Management net revenue surged 79.7% year-over-year and 9% quarter-on-quarter to ¥47.7 billion, with income before income taxes up 539.1% year-over-year and 31% quarter-on-quarter to ¥23.2 billion; AUM reached ¥92.5 trillion with net inflows of ¥950 billion.

• Wholesale net revenue increased 28.3% year-over-year but declined 4% quarter-on-quarter to ¥244.8 billion, with income before income taxes up 905.3% year-over-year and 3% quarter-on-quarter to ¥21.1 billion, driven by strong performance in Spread Products and Equities.

• Other segment net revenue was ¥46.7 billion, with income before income taxes at ¥15.1 billion.