Nomura (8604) Q4 2025 earnings summary

Executive summary

• Net revenue for the year rose 21.2% year-over-year to JPY 1,892.5 billion, with net income reaching a record JPY 340.7 billion, up 105.4% year-over-year, and all three main business segments delivering strong results.

• Income before income taxes increased 72.3% to JPY 472.0 billion, with segment income before taxes up 80% to JPY 426.6 billion and international regions contributing 29% of groupwide profits.

• Return on equity doubled to 10.0% from 5.1% year-over-year.

• Proactive shareholder returns included an annual dividend of JPY 57 per share (49.4% payout ratio) and a share buyback program up to JPY 60 billion.

• Total assets increased to JPY 56,802.2 billion, mainly from higher trading assets.

Financial highlights

• Earnings per share for the year reached JPY 115.30, and return on equity was 10.0%.

• Fourth quarter net revenue was JPY 452.7 billion (down 10% quarter-on-quarter), with net income of JPY 72.0 billion and ROE at 8.2%.

• Non-interest expenses rose 10% year-over-year to JPY 1,420.5 billion, mainly due to higher compensation and trading volumes.

• Group-wide effective tax rate fell to 26% due to utilization of tax losses carried forward and improved international profitability.

• Annual dividend per share was JPY 57.00 (including JPY 10.00 commemorative dividend); payout ratio was 49.4%.

Outlook and guidance

• Management remains focused on sustainable growth, aiming for consistent ROE of 8-10% and income before income taxes above JPY 500 billion.

• No earnings or dividend forecasts provided for FY ending March 31, 2026, citing market uncertainties.

• April saw a slowdown in wealth management net revenue, but recurring revenue assets continued to see net inflows.

• Wholesale division expects higher net revenue in April compared to the previous quarter, driven by robust equities and FX trading.

• All medium- to long-term KGI targets set at Investor Day 2023 were achieved.