Nomura (8604) Q2 2025 earnings summary

Executive summary

• Net revenue rose 6% quarter-on-quarter to JPY 483.3 billion, with net income up 43% to JPY 98.4 billion, marking the highest levels since June 2020; EPS was JPY 32.26 and ROE 11.6%.

• All three international regions were profitable, contributing to a lower effective tax rate of 27%.

• Wealth Management achieved a nine-year high in income before income taxes, with strong net inflows of recurring revenue assets and record recurring revenue.

• Investment Management posted solid net inflows (JPY 1.1 trillion) and maintained high alternative assets under management (>JPY 2 trillion) despite market headwinds.

• Wholesale income before income taxes doubled, with improved cost-to-income ratio (83%) as revenues grew and costs were contained.

Financial highlights

• First-half net revenue was JPY 937.8 billion, up 31% year-over-year; net income increased 186% to JPY 167.3 billion.

• EPS for the quarter was JPY 32.26; for the first half, JPY 54.58.

• Dividend per share set at JPY 23, with a payout ratio of 40.6%.

• Tier 1 capital ratio stood at 17.6%, and CET1 ratio at 15.7%.

• Total assets as of September 30, 2024 were JPY 57,458.6 billion, up JPY 2,311.4 billion from March 31, 2024.

Outlook and guidance

• October saw a slowdown in Wealth Management and Wholesale due to political events, but baseline ROE remains strong.

• Management aims to maintain high-quality, diversified revenue and continue cost control to sustain strong ROE.

• Basel III implementation and FRTB impact are being monitored for future capital policy decisions.

• No earnings or dividend forecasts provided due to uncertainties in global capital markets and economic conditions.