Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2024/25 Earnings Presentation
34 slides from Nomura's earnings presentation, Nov 7, 2024
Slide 1: Consolidated Results of Operations, Second quarter, year ending March 2025
Nomura © Nomura (US GAAP) November 2024 Consolidated Results of Operations Second quarter, year ending March 2025 Nomura Holdings, Inc.
Slide 2: Outline
Nomura Outline 1 Presentation Financial Supplement â—¼ Consolidated balance sheet (p. 17) â—¼ Value at risk (p. 18) â—¼ Consolidated financial highlights (p. 19) â—¼ Consolidated income (p. 20) â—¼ Main revenue items (p. 21) â—¼ Consolidated results: Income (loss) before income taxes by segment and
Slide 3: Executive summary (1/2)
Nomura Executive summary (1/2) 1. Net income (loss) attributable to Nomura Holdings shareholders. 2. Diluted net income (loss) attributable to Nomura Holdings shareholders per share. 3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period. 2 FY2024/25 2
Slide 4: Executive summary (2/2)
Nomura FY2024/25 1H highlights Executive summary (2/2) 1. Net income (loss) attributable to Nomura Holdings shareholders. 2. Diluted net income (loss) attributable to Nomura Holdings shareholders per share. 3. Calculated using annualized net income attributable to Nomura Holdings shareholders for ea
Slide 5: Overview of results
Nomura Highlights Overview of results 1. Net income (loss) attributable to Nomura Holdings shareholders. 2. Diluted net income (loss) attributable to Nomura Holdings shareholders per share. 3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period. 4 (bil
Slide 6: Business segment results
Nomura Business segment results 5 Net revenue and income (loss) before income taxes *Additional information on “Other” (FY2024/25 2Q) â—¼ Gain related to economic hedging (Y1.8bn) â—¼ Gain on changes to own and counterparty credit spread relating to Derivatives (Y1.0bn) (billions of yen) FY2023/24 F
Slide 7: Wealth Management
Nomura Wealth Management 1. Revenue from client assets and ongoing revenue (investment trusts, discretionary investments, insurance, loans, level fee assets, etc.). 2. Revenue from transactions (brokerage revenue, consulting-related revenue), interest income, etc. other than from loans. 3. Excludes
Slide 8: Wealth Management: Solid sales despite market volatility
Nomura Wealth Management: Solid sales despite market volatility 1. Excludes Corporate section and Workplace Solution Department. 7 Total sales1 FY2023/24 FY2024/25 2Q 3Q 4Q 1Q 2Q Stocks 3,484.8 3,146.7 4,491.3 4,785.8 4,149.9 Bonds 746.8 617.8 749.3 695.6 610.8 Investment trusts 619.8 605.0 764.2 97
Slide 9: Wealth Management: KPI summary
Nomura Wealth Management: KPI summary 1. Excludes investment trust distributions, and investment trust net inflows in level fee accounts. Figures from before FY2023/24 4Q have been reclassified following a change in definition of net inflows of recurring assets in FY2024/25 1Q. 2. Revenue from clien
Slide 10: Investment Management
Nomura Investment Management 1. Includes revenues from asset management business (excl. ACI-related gain/loss), Nomura Babcock & Brown aircraft leasing-related revenues and general partner management fees gained from private equity and other investment businesses but excludes investment gains/losses
Slide 11: Investment Management: Inflows from diverse distribution channels
Nomura Investment Management: Inflows from diverse distribution channels 1. Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Corporate Research and Asset Management, and Wealth Square, as well as third party investments related to assets under
Slide 12: Wholesale
Nomura Wholesale 1. Wholesale net revenue (annualized) divided by modified risk-weighted assets (daily average for the accounting period) used by Wholesale. Modified risk-weighted assets (daily average for the accounting period) is a non-GAAP financial measure and is the total of (i) risk-weighted a
Slide 13: Wholesale: Global Markets net revenue
Nomura Net revenue: Y221.1bn (+6% QoQ; +30% YoY) â—¼ Fixed Income revenues increased 2% QoQ driven by momentum in Macro Products across Rates and FX/EM â—¼ Equities revenues gained 14% QoQ on the back of strong performance in Equity Products in Japan and AEJ Fixed Income â—¼ Net revenue: Y127.8bn (+
Slide 14: Wholesale: Investment Banking
Nomura Wholesale: Investment Banking 1. ECM, DCM, ALF, businesses run together with Global Markets, and other revenue not attributed to a particular product. 2. Source LSEG, Jan – Sep 2024 Net revenue: Y42.3bn (+14% QoQ; +27% YoY) â—¼ Advisory revenues slowed QoQ, while Financing and Solutions, etc.
Slide 15: Non-interest expenses
Nomura Non-interest expenses: Y350.3bn (-0.3% QoQ) â—¼ Compensation and benefits (+0.1% QoQ)—Higher bonus provisions in line with performance, lower severance-related expenses â—¼ Commissions and floor brokerage (+4% QoQ)—Increase due to higher trading volumes â—¼ Other expenses (-6% QoQ)—Lower prof
Slide 16: Robust financial position
Nomura Robust financial position 1. Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity. 2. HQLA and LCR as of the end of September 2024 are final figures. Other figures are preliminary. 3. CET 1 ca
Slide 17: Financial Supplement
Nomura Financial Supplement
Slide 18: Consolidated balance sheet
Nomura Consolidated balance sheet Consolidated balance sheet 1. Including securities pledged as collateral. 17 (billions of yen) Mar 31, 2024 Sep 30, 2024 Increase (Decrease) Mar 31, 2024 Sep 30, 2024 Increase (Decrease) Assets Total cash and cash deposits 5,155 5,790 635 Short-term borrowings 1,055
Slide 19: Value at risk
Nomura Value at risk 18 (billions of yen) â—¼ Definition—95% confidence level—1-day time horizon for outstanding portfolio—Inter-product price fluctuations considered â—¼ From April 1, 2024, to September 30, 2024 (billions of yen)—Maximum: 6.9—Minimum: 4.5—Average: 5.6 FY2022/23 FY2023/24 FY2024/25
Slide 20: Consolidated financial highlights
Nomura Consolidated financial highlights 1. Quarterly ROE is calculated using annualized year-to-date net income. 19 (billions of yen) 92.8 165.9 3.1% 5.1% 0% 2% 4% 6% 8% 10% 0 50 100 150 200 Net income (loss) attributable to Nomura Holdings, Inc. (“NHI”) shareholders ROE(%) FY2024/25 2Q 3Q 4Q 1Q 2Q
Slide 21: Consolidated income
Nomura Consolidated income 20 (billions of yen) FY2024/25 2Q 3Q 4Q 1Q 2Q Commissions 279.9 364.1 88.9 85.7 106.7 102.8 101.4 Fees from investment banking 113.2 173.3 38.6 55.2 48.3 41.3 53.3 Asset management and portfolio service fees 271.7 310.2 76.7 77.5 84.2 90.3 93.8 Net gain on trading 563.3 49
Slide 22: Main revenue items
Nomura Asset Management and portfolio service fees Fees from Investment banking Commissions Main revenue items 21 (billions of yen) FY2024/25 2Q 3Q 4Q 1Q 2Q Stock brokerage commissions 190.8 242.7 58.3 56.4 72.7 64.9 66.9 Other brokerage commissions 17.9 15.6 4.0 3.9 3.8 4.1 4.4 Commissions for dist
Slide 23: Income (loss) before income taxes by segment and region
Nomura Consolidated results: Income (loss) before income taxes by segment and region 1. Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended September 30, 2024). Nomura’s revenues and expenses are allocated based on the country of domicile of the legal en
Slide 24: Segment "Other"
Nomura Income (loss) before income taxes Segment “Other” 23 (billions of yen) 73.4 47.4 -30 0 30 60 90 FY2024/25 2Q 3Q 4Q 1Q 2Q Net gain (loss) related to economic hedging transactions -4.8 2.0 -8.9 7.6 0.0 -2.9 1.8 Realized gain (loss) on investments in equity securities held for operating purposes
Slide 25: Wealth Management related data (1)
Nomura Wealth Management related data (1) 24 (billions of yen) FY2024/25 2Q 3Q 4Q 1Q 2Q QoQ YoY Commissions 112.5 173.5 41.9 41.1 49.1 49.8 43.3 -13.0% 3.3% Of which, stock brokerage commission 50.9 80.2 18.8 17.2 25.1 19.1 17.7 -6.9% -5.6% Of which, commissions for distribution of investment trusts
Slide 26: Wealth Management related data (2): client assets
Nomura Wealth Management client assets Wealth Management related data (2) 1. Including CBs and warrants. 2. Including annuity insurance. 25 (trillions of yen) 122.2 153.5 0 40 80 120 160 Other Foreign investment trusts Bond investment trusts Stock investment trusts Domestic bonds Foreign currency bo
Slide 27: Wealth Management related data (3): net inflows
Nomura Net inflows of cash and securities1 Wealth Management related data (3) 1. Cash and securities inflows minus outflows, excluding regional financial institutions. 2. Retail excludes Corporate section, Private Wealth Management and Workplace Service from Wealth Management total. Figures from bef
Slide 28: Wealth Management related data (4)
Nomura Wealth Management related data (4) 1. Junior NISA accounts are not included from the figure at the end of June 2024. 2. Ratio of cash stocks traded via online service. 27 Number of accounts New Individual accounts / IT share2 (thousands) (thousands) FY2022/23 FY2023/24 FY2024/25 Mar Mar Sep D
Slide 29: Investment Management related data (1)
Nomura Investment Management related data (1) 1. From June 2024, assets under management (gross) of Nomura Asset Management and Group company overlap assets decreased similarly due to the reorganization in the Americas made on April 1, 2024. 2. Total of assets under management (gross) of Nomura Asse
Slide 30: Investment Management related data (2)
Nomura Investment Management related data (2) 1. Based on assets under management (net). 2. Source: Investment Trusts Association, Japan. 29 Asset inflows/outflows by business1 Domestic public investment trust market and Nomura Asset Management market share2 (billions of yen) (trillions of yen) FY20
Slide 31: Wholesale related data
Nomura Wholesale related data 30 Net revenue and income (loss) before income taxes Breakdown of Wholesale revenue (billions of yen) (billions of yen) FY2024/25 2Q 3Q 4Q 1Q 2Q Net revenue 772.4 866.1 204.1 217.0 254.2 244.8 263.4 7.6% 29.1% Non-interest expenses 743.0 812.2 195.8 194.0 233.6 223.7 21
Slide 32: Number of employees
Nomura Number of employees 1. Includes Powai office in India. 31 FY2022/23 FY2023/24 FY2024/25 Mar Mar Sep Dec Mar Jun Sep Japan 15,131 14,870 15,158 14,996 14,870 15,215 15,045 Europe 2,937 3,053 2,993 3,015 3,053 3,057 3,111 Americas 2,387 2,440 2,486 2,458 2,440 2,450 2,502 Asia and Oceania1 6,32
Slide 33: Disclaimer
Nomura Disclaimer â—¼ This document is produced by Nomura Holdings, Inc. (“Nomura”). â—¼ Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof. Of
Slide 34: Nomura Holdings, Inc. www.nomura.com
Nomura 33 Nomura Holdings, Inc. www.nomura.com