Nomura (8604) Q2 2027 earnings summary

Executive summary

• H1 FY2027 ROE was 13.3%, up from 11.3%; Q2 ROE was 10.9%, within the 2030 target range of 10%–12% or higher.

• H1 pretax income across the four business segments rose ~50% YoY, while stable revenue grew ~60% as asset-management-based businesses expanded.

Financial highlights

• H1 net revenue rose 24.6% YoY to ¥1,294.2bn; pretax income increased 21.1% to ¥359.5bn and net income rose 26.8% to ¥249.3bn.

• Q2 net revenue was ¥607.5bn, down 11.5% QoQ; pretax income was ¥148.0bn, down 30.0%, and net income was ¥103.7bn, down 28.7%.

• Q2 diluted EPS was ¥34.61; non-interest expenses were ¥459.5bn, down 3% QoQ but up 21% YoY.

• H1 non-interest expenses rose 26.0% YoY to ¥934.7bn; total revenue increased 16.3% to ¥2,694.5bn.

Outlook and guidance

• The 2030 Management Vision targets ROE of 10%–12% or more; management plans to pursue growth opportunities while controlling costs and taking appropriate risk.

• No earnings or dividend forecast was issued amid global capital-market uncertainty; the FY2027 fourth-quarter dividend remained unconfirmed.

• October Wealth Management revenue was near Q2 levels; Wholesale started more slowly, with management expecting monetization to improve its cost ratio in H2.

• Wholesale expense-ratio improvement is a medium- to long-term goal supported by structural cost measures, technology investment, AI, scale and operating leverage.

• Investment Banking cited a robust DCM pipeline and corporate financing demand amid a shift from government to corporate bond issuance.