Nomura Holdings announced its consolidated financial results for the first quarter of the fiscal year ending March 31, 2016. Net revenue was 424 billion yen ($3.5 billion), income before income taxes was 106 billion yen ($868 million), and net income attributable to Nomura Holdings shareholders was 68.7 billion yen ($563 million).
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Retail reported net revenue of 130.7 billion yen, up 6 percent quarter on quarter and 22 percent year on year. Income before income taxes increased 24 percent from the previous quarter and 61 percent from the same quarter last year to 50.9 billion yen.
Net inflows into investment trusts and discretionary investments continued to grow and annualized recurring revenue reached 78 billion yen, highlighting progress in the transformation of Nomura’s Retail business model.
Sales of insurance products increased as Nomura met the estate planning and cash flow needs of its retail clients. In April, Nomura established the Nomura Institute of Estate Planning and expanded the offering of Nomura Trust & Banking to include testamentary trusts and other inheritance related services.
Asset Management net revenue was 26.9 billion yen, up 13 percent quarter on quarter and 15 percent year on year. Income before income taxes jumped 76 percent over last quarter and 42 percent from last year to 11.7 billion yen. Assets under management were at a record high for the fifth straight quarter totaling 41.4 trillion yen.
The investment trust business reported net inflows of 1.3 trillion yen, driven by ongoing inflows into funds for discretionary investments such as those tapping into the structural changes in corporate Japan and private placed funds for regional financial institutions.
In the investment advisory business, Nomura saw continued momentum in winning mandates from Japanese pension funds. Internationally, the firm entered the retail market in the US and formed an alliance with RHB Group in Malaysia, winning its first mandate to manage an Islamic retail fund that targets global developed markets
Wholesale booked net revenue of 205.2 billion yen, down 11 percent from last quarter but up 9 percent from the first quarter last year. Income before income taxes was 19.7 billion yen, a decline of 63 percent quarter on quarter but up 3.4 times year on year.
Nomura maintains a robust financial position and a healthy balance sheet. As of the end of June, Nomura’s total capital ratio was 15.4 percent and its Tier 1 ratio was 13.5 percent under Basel III. Nomura had total assets of 44.0 trillion yen and shareholders’ equity of 2.8 trillion yen. Gross leverage was 15.8 times and net leverage was 9.7 times. All figures are on a preliminary basis. ■