Nomura Holdings, Inc. · TSE:8604
Nomura — Q3 FY2023/24 Earnings Presentation
34 slides from Nomura's earnings presentation, Feb 5, 2024
Slide 1: Consolidated Results of Operations, Third Quarter FY2023/24
Connecting Markets East & West Consolidated Results of Operations Third quarter, year ending March 2024 (US GAAP) Nomura Holdings, Inc. January 2024 Nomura
Slide 2: Outline
Outline Presentation Financial Supplement Executive summary (p. 2-3) Consolidated balance sheet (p. 17) Overview of results (p. 4) Value at risk (p. 18) Business segment results (p. 5) Consolidated financial highlights (p. 19) Retail (p. 6-8) Consolidated income (p. 20) Investment Management (p. 9-1
Slide 3: Executive summary (1/2)
Executive summary (1/2) FY2023/24 3Q highlights Net revenue: Y400.2bn (+9% QoQ); Income before income taxes: Y78.7bn (+39% QoQ); Net income1: Y50.5bn (+43% QoQ); EPS2: Y16.10; ROE3: 6.2% Three segment income before income taxes grew with groupwide performance rebounding after bottoming out in FY2022
Slide 4: Executive summary (2/2)
Executive summary (2/2) FY2023/24 1Q 3Q highlights Income before income taxes: Y181.8bn (+43% YoY); Net income1: Y109.1bn (+28% YoY); EPS2: Y34.69; ROE3: 4.5% Three segment income before income taxes of Y159.7bn (+69% YoY) driven by strong performance in Retail and Investment Management —Retail inco
Slide 5: Overview of results
Overview of results Highlights (billions of yen, excluding EPS and ROE) FY2022/23 FY2023/24 FY22/23 FY23/24 3Q 4Q 1Q 2Q 3Q QoQ YoY 1Q-3Q 1Q-3Q YoY Net revenue 393.7 324.9 348.9 367.8 400.2 9% 2% 1,010.6 1,116.9 11% Non-interest expenses 310.1 302.2 302.6 311.0 321.5 3% 4% 883.9 935.1 6% Income (loss
Slide 6: Business segment results
Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2022/23 FY2023/24 FY22/23 FY23/24 3Q 4Q 1Q 2Q 3Q QoQ YoY 1Q-3Q 1Q-3Q YoY Net revenue Retail 81.0 75.3 92.1 98.9 102.6 4% 27% 224.9 293.6 31% Investment Management 57.0 37.8 26.5 45.1 38.9 -14% -32% 90.7 11
Slide 7: Retail
Retail Net revenue and income before income taxes (billions of yen) FY2022/23 FY2023/24 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 81.0 75.3 92.1 98.9 102.6 4% 27% Non-interest expenses 67.8 65.5 69.1 69.9 70.7 1% 4% Income before income 13.3 9.8 22.9 29.0 31.9 10% 141% taxes Breakdown of net revenue (billi
Slide 8: Retail: Total sales
Retail: Total sales remained Total sales1 Discretionary 5,000.0 investment trusts, Insurance products 4,000.0 Investment trusts Bonds 3,000.0 2,000.0 Stocks 1,000.0 0.0 FY2022/23 FY2023/24 (billions of yen) 3Q 4Q 1Q 2Q 3Q Stocks 2,383.5 2,669.6 2,788.5 3,484.8 3,146.7 Bonds2 632.2 656.5 651.5 746.8
Slide 9: Retail: KPI summary
Retail: KPI summary Net inflows of recurring revenue assets1 Continued net inflows of recurring revenue assets driven by insurance and loans (billions of yen) Retail total Excluding Corporate section 200.0 187.7 156.5 151.5 150.0 128.6 115.2 100.0 72.3 65.4 51.4 50.0 33.9 7.6 0.0 FY2022/23 FY2023/24
Slide 10: Investment Management
Investment Management Net revenue and income before income taxes (billions of yen) FY2022/23 FY2023/24 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 57.0 37.8 26.5 45.1 38.9 -14% -32% Non-interest expenses 23.7 21.5 22.9 21.9 23.3 7% -1% Income before income 33.3 16.4 3.6 23.2 15.6 -33% -53% taxes Breakdown of
Slide 11: Investment Management: Continued inflows into institutional investor business
Investment Management: Continued inflows into institutional investor business Assets under management (net)1 (trillions of yen) Investment Investment advisory trust business and international businesses, etc. 76.1 76.5 78.5 80.0 64.7 67.3 22.2 21.1 21.4 60.0 18.3 17.7 40.0 49.0 55.0 55.1 56.4 20.0 4
Slide 12: Wholesale
Wholesale Net revenue and income (loss) before income taxes1 (billions of yen) FY2022/23 FY2023/24 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 189.1 178.8 190.9 204.1 217.0 6% 15% Non-interest expenses 190.9 193.1 188.7 195.8 194.0 -1% 2% Income (loss) before income taxes -1.9 -14.2 2.1 8.3 23.0 178%—CIR 101
Slide 13: Wholesale: Global Markets
Wholesale: Global Markets Net revenue (billions of yen) 200.0 FI: Others1 150.0 FI: Macro Products2 100.0 3 FI: Spread Products EQ: Others4 50.0 EQ: 5 Equity Products EQ: Execution Services6 0.0 FY2022/23 FY2023/24 QoQ YoY 3Q 4Q 1Q 2Q 3Q Fixed 86.7 87.5 97.4 96.9 103.5 7% 19% Income (FI) Equities (E
Slide 14: Wholesale: Investment Banking
Wholesale: Investment Banking Key points Net revenue: Y45.4bn (+36% QoQ; +30% YoY)—Net driven revenue by strong at highest performance level since in Japan FY2016/17 and EMEA when comparisons possible —Advisory M&A revenues and Financing, were higher Solutions, in all regions, etc. revenues Japa
Slide 15: Non-interest expenses
Non-interest expenses Full year Quarter (billions of yen) (billions of yen) 1,500 400 Other 1,186.1 321.5 1,137.3 310.1 302.2 302.6 311.0 Business development 1,000 expenses Occupancy and related depreciation 200 Information processing 500 and communications Commissions and floor brokerage Compensat
Slide 16: Robust financial position
Robust financial position Balance sheet related indicators and capital ratios Mar 2023 Sep 2023 Dec 2023 Total assets Y47.8trn Y54.8trn Y54.8trn Shareholders equity Y3.1trn Y3.3trn Y3.3trn Gross leverage 15.2x 16.6x 16.7x Net leverage1 9.4x 10.0x 10.5x Level 3 assets2 (net) Y0.9trn Y1.0trn Y1.0trn L
Slide 17: Financial Supplement
Financial Supplement
Slide 18: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet (billions of yen) Mar 31, Dec 31, Increase Mar 31, Dec 31, Increase 2023 2023 (Decrease) 2023 2023 (Decrease) Assets Liabilities Total cash and cash deposits 4,521 5,112 591 Short-term borrowings 1,009 875 -134 Total payables and deposits 5,297 6
Slide 19: Value at risk
Value at risk Definition From April 1, 2023, to December 31, 2023 (billions of yen) 95% confidence level Maximum: 6.8 1-day time horizon for outstanding portfolio Minimum: 4.3 Inter-product price fluctuations considered Average: 5.5 (billions of yen) FY2021/22 FY2022/23 FY2022/23 FY2023/24 Mar Mar D
Slide 20: Consolidated financial highlights
Consolidated financial highlights Full year (billions of yen) 200 8% Net income (loss) 150 143.0 6% attributable to 5.1% Nomura Holdings, Inc. (“NHI”) shareholders 92.8 100 4% 3.1% ROE (%) 50 2% 0 0% FY2021/22 FY2022/23 Net revenue 1,363.9 1,335.6 Income (loss) before income taxes 226.6 149.5 Net in
Slide 21: Consolidated income
Consolidated income Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2022/23 FY2023/24 3Q 4Q 1Q 2Q 3Q Revenue Commissions 332.3 279.9 77.5 63.8 82.8 88.9 85.7 Fees from investment banking 149.6 113.2 33.8 28.0 31.1 38.6 55.2 Asset management and portfolio service fees 270.0 271.7 67.0 67.4
Slide 22: Main revenue items
Main revenue items Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2022/23 FY2023/24 3Q 4Q 1Q 2Q 3Q Stock brokerage commissions 236.4 190.8 52.6 41.3 55.2 58.3 56.4 Other brokerage commissions 18.0 17.9 4.3 4.0 4.0 4.0 3.9 Commissions Commissions for distribution of investment trusts 43.7
Slide 23: Income (loss) before income taxes by segment and region
Consolidated results: Income (loss) before income taxes by segment and region [Graphic Appears Here] Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter (billions of yen) FY2022/23 FY2023/24 FY2021/22 FY2022/23 3Q 4Q 1Q 2Q 3Q Retail 59.2 33.5 1
Slide 24: Segment Other
Segment Other Income (loss) before income taxes Full year Quarter (billions of yen) 90 73.4 60 59.5 30 21.9 21.2 15.8 15.7 0 1 2 3 -6.45 5 -30 FY2021/22 FY2022/23 FY2022/23 FY2023/24 3Q 4Q 1Q 2Q 3Q Net gain (loss) related to economic -9.9 -4.8 -1.5 6.3 3.4 -8.9 7.6 hedging transactions Realized gain
Slide 25: Retail related data (1)
Retail related data (1) Full year Quarter (billions of yen) FY2022/23 FY2023/24 FY2021/22 FY2022/23 QoQ YoY 3Q 4Q 1Q 2Q 3Q Commissions 138.5 112.5 31.2 29.1 41.3 41.9 41.1 -2.0% 31.8% Of which, stock brokerage commission 67.4 50.9 13.4 13.4 19.1 18.8 17.2 -8.7% 28.0% Of which, commissions for distri
Slide 26: Retail related data (2)
Retail related data (2) Retail client assets (trillions of yen) 133.3 134.4 135.9 140 Other 122.2 122.1 122.2 117.5 120 Foreign investment trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency bonds 20 Equities 0 FY2021/22 FY2022/23 FY2022/23 FY2023/24 Ma
Slide 27: Retail related data (3)
Retail related data (3) Net inflows of cash and securities1 (billions of yen) Full year Quarter Corporates Individuals Corporates Individuals 1,400 1,400 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 0 0 -200 -200 FY2022/23 FY2023/24 FY2021/22 FY2022/23 3Q 4Q 1Q 2Q 3Q Corporates2 -136 282
Slide 28: Retail related data (4)
Retail related data (4) Number of accounts (thousands) FY2021/22 FY2022/23 FY2022/23 FY2023/24 Mar Mar Dec Mar Jun Sep Dec Accounts with balance 5,348 5,353 5,352 5,353 5,395 5,396 5,448 Equity holding accounts 2,955 2,993 2,967 2,993 2,976 2,962 2,964 NISA accounts opened (accumulated)1 1,589 1,632
Slide 29: Investment Management related data (1)
Investment Management related data (1) Full year Quarter FY2022/23 FY2023/24 (billions of yen) FY2021/22 FY2022/23 QoQ YoY 3Q 4Q 1Q 2Q 3Q Business revenue 119.9 120.7 31.4 28.7 32.5 33.4 33.3 -0.3% 6.2% Investment gain/loss 28.1 7.9 25.6 9.1 -6.0 11.7 5.6 -52.0% -78.0% Net revenue 148.0 128.6 57.0 3
Slide 30: Investment Management related data (2)
Investment Management related data (2) Asset inflows/outflows by business1, 2 Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2022/23 FY2023/24 3Q 4Q 1Q 2Q 3Q Investment trusts business 1,236 156 -100 -358 649 475 -60 of which ETFs 683 -250 -347 -221 42 266 -131 Investment advisory and 830
Slide 31: Wholesale related data
Wholesale related data Full year Quarter (billions of yen) FY2022/23 FY2023/24 FY2021/22 FY2022/23 QoQ YoY 3Q 4Q 1Q 2Q 3Q Net revenue 703.1 772.4 189.1 178.8 190.9 204.1 217.0 6.3% 14.8% Non-interest expenses 628.6 743.0 190.9 193.1 188.7 195.8 194.0 -0.9% 1.6% Income (loss) before income taxes 74.5
Slide 32: Number of employees
Number of employees FY2021/22 FY2022/23 FY2022/23 FY2023/24 Mar Mar Dec Mar Jun Sep Dec Japan 15,213 15,131 15,282 15,131 15,382 15,158 14,996 Europe 2,820 2,937 2,908 2,937 2,971 2,993 3,015 Americas 2,257 2,387 2,392 2,387 2,426 2,486 2,458 Asia and Oceania1 6,295 6,320 6,634 6,320 6,465 6,492 6,4
Slide 33: Disclaimer
Disclaimer This document is produced by Nomura Holdings, Inc. ( Nomura ). 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. Offers to sell, s
Slide 34: Nomura Holdings, Inc.
Nomura Holdings, Inc. www.nomura.com