Nomura’s reports modest quarterly profit amid financial market downturn

TOKYO, Nov 2 (Reuters) – Nomura Holdings Inc (8604.T), Japan’s prime brokerage and funding financial institution, on Wednesday reported a modest stage of revenue for the second quarter as fears of a worldwide recession weighed on its asset administration and funding banking divisions.

July-September revenue got here in at 16.8 billion yen ($113.9 million).

Whereas that was a lot stronger than the three.2 billion yen revenue for a similar quarter a yr earlier when it booked a 39 billion yen cost associated to U.S. mortgage backed loans issued greater than a decade in the past, its outcomes have been in any other case lacklustre.

“The most recent outcomes are usually not at passable ranges,” Chief Monetary Officer Takumi Kitamura informed a briefing.

Headwinds together with sharply rising international rates of interest and the warfare in Ukraine have led to inventory market downturns, hitting Nomura’s mainstay companies regardless of its efforts to vary its earnings construction to be much less weak to market swings.

Pretax revenue at Nomura’s funding administration enterprise plunged 63%, whereas revenue for its retail enterprise dropped 68% from a yr earlier.

Funding banking additionally suffered from low demand for bond and fairness underwriting.

Mounted-income buying and selling continued to a shiny spot due to increased quantity, with market volatility prompting traders to rebalance their portfolios.

Pretax revenue for Nomura’s wholesale division, which homes its buying and selling and funding banking companies, was 20.2 billion yen in contrast with a year-before revenue of 25 billion yen.

($1 = 147.4800 yen)

Reporting by Makiko Yamazaki; Enhancing by David Dolan and Edwina Gibbs

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