Nomura Q3 Profit Surges, But Revenues Down; Stock Dips

(RTTNews) - Shares of Nomura Holdings Inc. (NMR) declined around 4 percent in the trading in Japan after the financial services provider reported lower revenues in its fourth quarter as weak wholesale performance offset improvement in retail and asset management results. However, profit for the quarter surged from last year.

For the third quarter, net income attributable to Nomura shareholders surged 140 percent to 48.3 billion yen or 12.65 yen per share from last year's 20.1 billion yen or 5.33 yen per share.

Income before income taxes was 86.9 billion yen, compared to 13 billion yen a year ago.

Total revenues for the period, meanwhile, declined to 447.4 billion yen from prior year's 459 billion yen. Quarterly net revenues edged down 2 percent to 379.4 billion yen from 389.1 billion yen in the previous year.

Sequentially, attributable net income climbed 27 percent and revenues grew 6 percent from the preceding second quarter.

In the third quarter, retail net revenues of 128 billion yen climbed 34 percent from last year. The results reflected increase of sales of stocks and investment trusts on higher stock prices, yen depreciation and robust trading volumes.

Asset management net revenues grew 13 percent year-over-year to 21.2 billion yen, driven by fund inflows and investment environment. The company's net assets under management was 32.9 trillion yen at the end of the quarter, higher than last year's 25.1 trillion yen.

Wholesale net revenues, meanwhile, edged down 0.2 percent to 188.7 billion yen, with lower investment banking revenue and flat global markets revenues.

On a geographical basis, Japanese wholesales revenues benefited from robust credit and cash equities businesses combined with revenue contribution from private equity unrealized gain.

For the nine months, attributable net income surged 514 percent to 152.34 billion yen, and net revenues edged up 0.6 percent to 1.17 trillion yen.

In Japan, Nomura shares closed Thursday's trading at 739 yen, down 30 yen or 3.90 percent.