30-07-2025
Nomura Holdings Inc (NMR) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Record AUM
Group Net Revenue: JPY523.3 billion, up 16% over last quarter.
Income Before Income Taxes: JPY160.3 billion, a 64% increase from last quarter.
Net Income: JPY104.6 billion, up 45% compared with last quarter.
EPS: JPY34.04.
Annualized ROE: 12%.
Wealth Management Net Revenue: JPY105.8 billion, a 6% increase.
Wealth Management Income Before Income Taxes: JPY38.8 billion, up 8%.
Total Sales: JPY6.7 trillion, a 24% increase.
Investment Management Net Revenue: JPY50.6 billion, up 18%.
Investment Management Income Before Income Taxes: JPY21.5 billion, a 39% increase.
Assets Under Management: JPY94.3 trillion, a record high.
Wholesale Net Revenue: JPY261.1 billion, up 1%.
Wholesale Income Before Income Taxes: JPY41.9 billion, a 12% increase.
Banking Division Net Revenue: JPY12.8 billion, a 12% rise.
Banking Division Income Before Income Taxes: JPY3.6 billion, up 19%.
Group-wide Expenses: JPY363.0 billion, a 2% increase.
Tier 1 Capital: Approximately JPY3.4 trillion.
Common Equity Tier 1 Ratio: 13.2% at the end of June.
Warning! GuruFocus has detected 5 Warning Sign with NMR.
Release Date: July 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Group net revenue increased by 16% over the last quarter, reaching JPY523.3 billion.
Income before income taxes grew by 64% to JPY160.3 billion, with net income rising 45% to JPY104.6 billion.
All four divisions, including the newly established Banking division, achieved growth in both revenues and profits compared to the previous quarter.
Assets under management in the Asset Management business hit a record high of JPY94.3 trillion due to market recovery.
The Wealth Management division saw a net inflow of recurring revenue assets for the 13th consecutive quarter.
Negative Points
Recurring revenue declined compared to the previous quarter due to a decline in stock prices and the absence of investment advisory fees.
Investment Banking revenues fell 27% from the previous quarter, despite being the highest for Q1 since fiscal year 2016-17.
The company faced a JPY6.6 billion expense related to compensation for losses from illegal trades due to phishing scams.
The common equity Tier 1 ratio decreased from 14.5% to 13.2% due to an increase in risk assets.
The EMEA region reported losses due to weak market conditions and increased personnel costs due to compensation regulations.
Q & A Highlights
Q: Can you provide details on the phishing scam compensation and its impact on financials? A: Hiroyuki Moriuchi, CFO, explained that the phishing scam compensation of JPY6.6 billion reflects all illegal trades up to June 28. The cost is included under "other expenses." The approach is to restore clients' positions to their state before the scam, rather than direct monetary compensation.
Q: What are the trends in Fixed Income and Equities, and how do they compare to peers? A: Moriuchi noted that Fixed Income was weaker compared to peers, mainly due to market confusion in April, particularly in Japanese rates. However, Equities performed strongly, especially in the Americas, driven by robust derivatives performance.
Q: How is the global market performing in July, and what are the regional differences? A: Moriuchi stated that overall, the global market performance in July is in line with Q1 levels, with equities performing strongly and fixed income relatively weaker. The Americas show solid performance, while EMEA faces challenges due to market factors and regulatory costs.
Q: What is the capital policy priority, and how does it relate to the Macquarie acquisition? A: Moriuchi emphasized that the priority is on strategic investments and capturing opportunities. The CET1 ratio is slightly below the midpoint of the target range, indicating a need for careful capital management. The Macquarie acquisition is on track for a December close, with no critical issues anticipated.
Q: How is client sentiment in Investment Banking and Wealth Management? A: Moriuchi observed strong corporate demand in Japan due to governance reforms, while overseas markets are stabilizing post-tariff news. In Wealth Management, despite market shocks, client sentiment remains calm, with improved financial literacy and continued investment interest.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
