OREANDA-NEWS.  Nomura Holdings, Inc. today announced its consolidated financial results for the third quarter of the fiscal year ending March 31, 2016.

Net revenue in the third quarter was 354.9 billion yen (US$3.0 billion), up 5 percent quarter on quarter but down 16 percent year on year. Income before income taxes was 51.6 billion yen (US$429 million), representing an increase of 160 percent over last quarter and a decline of 56 percent year on year. Net income attributable to Nomura Holdings shareholders was 35.4 billion yen (US$294 million), down 24 percent sequentially and 49 percent compared to last year.

For the nine months to December, net revenue was 1,115.5 billion yen (US$9.3 billion), down 5 percent year on year, and income before income taxes was 177.5 billion yen (US$1.5 million), a decline of 27 percent from last year. Net income attributable to Nomura Holdings shareholders was up 6 percent at 150.7 billion yen (US$1.3 billion) and earnings per share increased 7 percent to 40.85 yen. Annualized return on equity was 7.3 percent.

“The third quarter was marked by ongoing challenges in our operating environment, leading to lower net revenue and pretax income from our three business segments compared to last quarter. However, Group net revenue and pretax income both increased from last quarter, which included a one-off charge related to a litigation settlement,” said Nomura Group CEO Koji Nagai.

“Retail investors remained in a wait-and-see mode in light of the volatile market conditions and net revenue and pretax income in Retail both declined quarter on quarter. Asset Management reported stronger revenues and pretax income on the back of record assets under management driven by continued inflows. Wholesale revenues declined amid the challenging market conditions, but pretax income was stronger as cost reduction initiatives took effect.

“As we head into the end of our fiscal year, we remain focused on connecting markets east and west as Asia’s global investment bank to deliver value-added products and services to our clients and contribute to economic growth.”

Financial Position

Nomura maintains a robust financial position and a healthy balance sheet. As of the end of December, Nomura’s total capital ratio was 17.1 percent and its Tier 1 ratio was 15.1 percent under Basel III. Nomura had total assets of 43.5 trillion yen and shareholders’ equity of 2.8 trillion yen. Gross leverage was 15.5 times and net leverage was 9.7 times. All figures are on a preliminary basis.

Nomura

Nomura is an Asia-based financial services group with an integrated global network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Asset Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership.