Nomura's Q3 Earnings Beat Estimates with 11% Revenue Growth

<p>The third
quarter of the fiscal year ending March 2024 (FY24) saw a notable upturn in Nomura
Holdings' financials. The company has demonstrated significant growth by
reporting a quarterly increase in net revenue, totaling 400.2 billion yen ($2.8
billion), and a rise of 39% in income before taxes from the last quarter, reaching
78.7 billion yen ($558 million), </p><p>Despite
these gains, there was a yearly decline of 6% in income before taxes, underscoring
the complex dynamics of the current financial market.</p><p>Nomura Reports Q3
Financial Growth </p><p>The
company's consolidated net revenue for the third quarter stood at 400.2 billion
yen (S$2.8 billion), marking an incline of 9% from the previous quarter and a slight improvement of 2% year-on-year (YoY). This was paralleled by a notable escalation of 39% in income before
income taxes compared to the last quarter, amounting to 78.7 billion yen ($558
million). However, this represents a decrease of 6% YoY. Despite these
fluctuations, Nomura's net income attributable to shareholders showed an uptick of 43%
quarter-on-quarter (QoQ), reaching 50.5 billion yen (US$358 million).</p><p>For the
nine months ending in December, Nomura's net revenue climbed to 1,116.9 billion
yen (S$7.9 billion), an increase of 11% from the previous year. Before taxes,
income surged 43% to 181.8 billion yen (S$1.3 billion), with net income
attributable to shareholders rising by 28% to 109.1 billion yen (US$774
million).</p><p>The results
confirm Nomura's earlier reports published last year. For the six-month period
ending 30 September 2023, the company's pretax profit <a href="https://www.financemagnates.com/forex/nomuras-half-year-pretax-profit-surges-118-propelled-by-revenue-diversification/" target="_blank" rel="follow">grew by 118%</a>, driven by
revenue diversification. In the second quarter of FY24, Nomura <a href="https://www.financemagnates.com/institutional-forex/nomura-reports-record-breaking-quarter-assets-and-retail-trading-soar/" target="_blank" rel="follow">reported record
results</a> regarding assets and <a href="https://www.financemagnates.com/terms/r/retail-trading/">retail trading</a>.</p><p>Strong Performance Across Divisions</p><p>The Retail
division reported a net revenue of 102.6 billion yen, an increase of 4% QoQ and a significant escalation of 27% YoY. Income before taxes in
this segment grew 10% from the previous quarter and an impressive 141% from last
year, amounting to 31.9 billion yen. This surge was attributed to effective
staff realignment and favorable market conditions.</p><p>Despite a
quarterly decrease in net revenue of 14% and a YoY drop of 32%, Nomura's
Investment Management division achieved a record high in assets under
management at 78.5 trillion yen. Ongoing inflows and market factors bolstered
this.</p><p>The
Wholesale division exhibited an increase of 6% QoQ and 15% YoY in net revenue,
totaling 217 billion yen. Income before income taxes in this division showed a
substantial improvement of 178% from the previous quarter.</p><blockquote><p lang="en" dir="ltr">We’ve just announced our 3Q 2023-24 <a href="https://twitter.com/hashtag/financial?src=hash&amp;ref_src=twsrc%5Etfw">#financial</a> results. Here are some key figures from this quarter. View full announcement here: <a href="https://t.co/QfLj9EKn9M">https://t.co/QfLj9EKn9M</a> <a href="https://t.co/3JJhtevK6D">pic.twitter.com/3JJhtevK6D</a></p>— Nomura (@Nomura) <a href="https://twitter.com/Nomura/status/1752585040905523454?ref_src=twsrc%5Etfw">January 31, 2024</a></blockquote><p>Strategic Focus and Share
Repurchase Plan</p><p>Under the
leadership of Kentaro Okuda, Nomura's President and Group CEO, the company has
emphasized disciplined cost control and investment in growth potential areas.
The strategic focus on tailoring products and services to meet diverse investor
needs, especially in the Japanese market, has been a key driver of Nomura's latest
results.</p><p>Moreover,
the company has approved a resolution to repurchase up to 100 billion yen of
Nomura Holdings common shares.</p><p>Despite
successes, some challenges have arisen, too. The US Securities and Exchange
Commission <a href="https://www.financemagnates.com/forex/sec-probes-b-rileys-nomura-backed-deal-involving-frg-acquisition/" target="_blank" rel="follow">is investigating B. Riley's involvement</a> in the <a href="https://www.financemagnates.com/terms/a/acquisition/">acquisition</a> of
Franchise Group Inc). This transaction was managed by a person connected to the
downfall of the Prophecy Asset Management hedge fund and was partly funded by
Nomura Holdings Inc.</p>

This article was written by Damian Chmiel at www.financemagnates.com.