Nomura (8604) Q2 2025 earnings summary

Executive summary

• Net revenue for the quarter was JPY 483.3 billion, up 6% quarter-on-quarter, and for the first half reached JPY 937.8 billion, up 30.9% year-over-year, with net income up 43% quarter-on-quarter to JPY 98.4 billion and 185.7% year-over-year to JPY 167.3 billion, marking multi-year highs.

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

• Annualized ROE reached 11.6% for the quarter and 10.1% for the first half, the highest since December 2020 and at the upper end of the 2030 target range.

• Income before income taxes for the first half surged 129% year-over-year to JPY 235.9 billion.

• Comprehensive income declined 56.6% year-over-year to JPY 81.2 billion, mainly due to negative cumulative translation adjustments.

Financial highlights

• EPS for the quarter was JPY 32.26; for the first half, JPY 54.58, with basic EPS for the first half at JPY 56.63.

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

• Net revenue for the first half was JPY 937.8 billion, up 31% year-over-year.

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

• Total equity decreased by JPY 52.1 billion to JPY 3,396.4 billion compared to March 31, 2024.

Outlook and guidance

• October saw a slowdown in Wealth Management and Wholesale due to clients sitting on the sidelines amid political events, but baseline ROE remains supported.

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

• Continued focus on cost control and risk management to sustain bottom-line growth.

• Management aims to maintain high-quality, diversified revenue and stable ROE above 8-10%.

• Management highlighted strong three-segment performance and the positive impact of medium- to long-term initiatives.