Nomura Holdings, Inc. · TSE:8604
Nomura — Q2 FY2023/24 Earnings Presentation
34 slides from Nomura's earnings presentation, Nov 1, 2023
Slide 1: Consolidated Results of Operations, Second quarter, year ending March 2024
NOMURA Connecting Markets East & West © Nomura (US GAAP) October 2023 Consolidated Results of Operations Second quarter, year ending March 2024 Nomura Holdings, Inc.
Slide 2: Outline
Outline NOMURA Presentation Financial Supplement Executive summary (P2-3) Overview of results (P4) Business segment results (P5) Retail (P6-8) Investment Management (P9-10) Wholesale (P11-13) Non-interest expenses (P14) Robust financial position (P15) Consolidated balance sheet (P17) Value at risk (
Slide 3: Executive summary (1/2)
NOMURA Executive summary (1/2) FY2023/24 1H highlights ® Income before income taxes: Y103bn (+138% YoY); Net income1: Y58.6bn (3.2x YoY); EPS2: Y18.62; ROE3: 3.6% ® Three segment income before income taxes of Y89.2bn (+79% YoY) - Realignment of organization done in Spring to better meet needs of cli
Slide 4: Executive summary (2/2)
NOMURA Executive summary (2/2) Income (loss) before income taxes and FY2023/24 2Q highlights net income (loss)1 Groupwide (billions of yen) Income (loss) before income taxes ® Net revenue: Y367.8bn (+5% QoQ); Income before income taxes: Y56.7bn (+23% QoQ); Net Net income (loss) income1: Y35.2bn (+51
Slide 5: Overview of results
Overview of results Highlights (billions of yen, excluding EPS and ROE) FY2022/23 FY2023/24 FY2022/23 FY2023/24 2Q 3Q 4Q 1Q 2Q QoQ YoY 1H 1H QoQ Net revenue 318.0 393.7 324.9 348.9 367.8 5% 16% 617.0 716.7 16% Non-interest expenses 286.5 310.1 302.2 302.6 311.0 3% 9% 573.8 613.6 7% Income (loss) bef
Slide 6: Business segment results
NOMURA Business segment results Net revenue and income (loss) before income taxes (billions of yen) FY2022/23 FY2023/24 FY22/23 FY23/24 2Q 3Q 4Q 1Q 2Q QoQ YoY 1H 1H YoY Net revenue Retail 72.5 81.0 75.3 92.1 98.9 7% 36% 143.9 191.0 33% Investment Management 26.2 57.0 37.8 26.5 45.1 70% 72% 33.8 71.6
Slide 7: Retail
NOMURA Retail Net revenue and net income before income taxes Key points (billions of yen) ® Net revenue: Y98.9bn (+7% QoQ; +36% YoY) FY2022/23 FY2023/24 QoQ YoY ® Income before income taxes: Y29bn (+27% QoQ; 5.3x YoY) 2Q 3Q 4Q 1Q 2Q clients significantly higher than last ® Number of flow business ye
Slide 8: Retail: Total sales saw strong growth driven by Japanese stocks
NOMURA Retail: Total sales saw strong growth driven by Japanese stocks Total sales1 Total sales increased 20% QoQ 5,000.0 ® Stocks: +25% QoQ Discretionary – Strong growth in sales of Japanese secondary stocks as Sales investments, Partners made proposals aligned to client needs amid a favorable Insu
Slide 9: Retail: KPI summary
NOMURA Retail: KPI summary Net inflows of recurring revenue assets1 Recurring revenue assets and recurring revenue2 (billions of yen) ® Returned to net inflow driven by investment trusts, insurance (trillions of yen) Recurring revenue assets (billions of yen) products, discretionary investments, and
Slide 10: Investment Management
NOMURA Investment Management Net revenue and income before income taxes Key points (billions of yen) Net revenue: Y45.1bn (+70% QoQ; +72% YoY) FY2022/23 FY2023/24 before income taxes: QoQ YoY Income Y23.2bn (6.4x QoQ; 4.2x YoY) 2Q 3Q 4Q 1Q 2Q Stable business revenue at record high since Investment M
Slide 11: Investment Management: Inflows lift AuM to record high
NOMURA Investment Management: Inflows lift AuM to record high Assets under management (net)1 (trillions of yen) Investment advisory and international businesses, etc. AuM remained high during the quarter, recording new record high for Investment trust business second straight quarter 76.1 76.5 80.0
Slide 12: Wholesale
NOMURA Wholesale Net revenue and income (loss) before income taxes1 Key points (billions of yen) ® Net revenue: Y204.1bn (+7% QoQ; -1% YoY) FY2022/23 FY2023/24 QoQ YoY ® Income before income taxes: Y8.3bn (3.9x QoQ; -59% YoY) 2Q 3Q 4Q 1Q 2Q ® Overall performance improved QoQ Net revenue 205.5 189.1
Slide 13: Wholesale: Global Markets
NOMURA Wholesale: Global Markets Net revenue Key points (billions of yen) ® Net revenue: Y170.7bn (+6% QoQ; -4% YoY) Fixed Income revenues roughly unchanged QoQ; FX/EM and Securitized Products offset a slowdown in Rates Equities revenues increased 17% QoQ as Equity Products and 200.0 Execution S
Slide 14: Wholesale: Investment Banking
NOMURA Wholesale: Investment Banking Sustainability-related Net revenue Provided various services matching diverse client needs (billions of yen) ® Collaborated globally to win multiple cross-border mandates 40.0 despite challenging international markets Ontario Teachers’ Financing, Field (UK) Kao C
Slide 15: Non-interest expenses
NOMURA Non-interest expenses Full year Quarter Key points (billions of yen) ® Non-interest expenses: Y311.0bn (billions of yen) 400 (+3% QoQ) Other 1,500 – Compensation and benefits (+5% QoQ) 1,186.1 310.1 302.2 302.6 311.0 ƒ¼ Up QoQ due to yen depreciation, Business development 1,137.3 286.5 recogn
Slide 16: Robust financial position
NOMURA Robust financial position Balance sheet related indicators and capital ratios RWA and CET 1 capital ratio3 Mar 2023 Jun 2023 Sep 2023 (trillions of yen) RWA (Basel 3) (lhs) CET 1 capital ratio (Basel 3) (rhs) ® Total assets Y47.8trn Y52.5trn Y54.8trn 20.0 16.9% 16.5% 20.0% 16.0% 16.3% 16.6% ®
Slide 17: Financial Supplement
NOMURA Financial Supplement
Slide 18: Consolidated balance sheet
NOMURA Consolidated balance sheet Consolidated balance sheet (billions of yen) Mar 31, 2023 Sep 30, 2023 Increase (Decrease) Assets Total cash and cash deposits 4,521 4,877356 Total loans and receivables 5,207 6,112905 Total collateralized agreements 18,117 21,7703,652 Total trading assets and priva
Slide 19: Value at risk
NOMURA Value at risk Definition From April 1, 2023, to September 30, 2023 (billions of yen) 95% confidence level Maximum: 6.8 1-day time horizon for outstanding portfolio Minimum: 4.6 Inter-product price fluctuations considered Average: 5.6 (billions of yen) FY2021/22 FY2022/23 FY2022/23FY2023/24 Ma
Slide 20: Consolidated financial highlights
NOMURA Consolidated financial highlights Full year (billions of yen) 200 8% Net income (loss) 143.0 attributable to 150 5.1% 6% Nomura Holdings, Inc. (“NHI”) shareholders 92.8 100 4% 3.1% ROE (%) 50 2% 0 0% FY2021/22 FY2022/23 Quarter (billions of yen) 200 8% 150 6% 3.8% 100 4% 3.1% 2.9% 3.6% 66.9 5
Slide 21: Consolidated income
NOMURA Consolidated income Full year Quarter (billions of yen) FY2022/23FY2023/24 FY2021/22 FY2022/23 2Q3Q4Q1Q2Q Revenue Commissions 332.3 279.968.277.563.882.888.9 Fees from investment banking 149.6 113.224.233.828.031.138.6 Asset management and portfolio service fees 270.0 271.769.067.067.471.876.
Slide 22: Main revenue items
NOMURA Main revenue items Commissions Fees from investment banking Asset management and portfolio service fees Full year Quarter (billions of yen) FY2021/22 FY2022/23 FY2022/23FY2023/24 2Q3Q4Q1Q2Q Stock brokerage commissions 236.4 190.848.552.641.355.258.3 Other brokerage commissions 18.0 17.94.74.3
Slide 23: Consolidated results: Income (loss) before income taxes by segment and region
NOMURA Consolidated results: Income (loss) before income taxes by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes Full year Quarter (billions of yen) FY2022/23FY2023/24 FY2021/22 FY2022/23 2Q3Q4Q1Q2Q Retail 59.233.55.513.39.822.929.0 Inves
Slide 24: Segment "Other"
NOMURA Segment “Other” Income (loss) before income taxes Full year Quarter (billions of yen) 90 73.4 60 59.5 30 15.8 21.9 15.7 2.1 0 1 2 3 4 -6. 55 -30 FY2022/23FY2023/24 FY2021/22 FY2022/23 2Q3Q4Q1Q2Q Net gain (loss) related to economic -9.9 -4.80.1-1.56.33.4-8.9 hedging transactions Realized gain
Slide 25: Retail related data (1)
NOMURA Retail related data (1) Full year Quarter (billions of yen) FY2022/23FY2023/24 FY2021/22 FY2022/23 QoQYoY 2Q3Q4Q1Q2Q Commissions 138.5 112.526.231.229.141.341.91.6%60.3% Of which, stock brokerage commission 67.4 50.912.213.413.419.118.8-1.8%53.7% Of which, commissions for distribution of inve
Slide 26: Retail related data (2)
NOMURA Retail related data (2) Retail client assets (trillions of yen) 134.4 140 133.3 Other 122.2 122.1 122.2 117.7 117.5 Foreign investment 120 trusts 100 Bond investment trusts 80 Stock investment trusts 60 Domestic bonds 40 Foreign currency 20 bonds Equities 0 FY2021/22 FY2022/23 FY2022/23FY2023
Slide 27: Retail related data (3)
NOMURA Retail related data (3) Net inflows of cash and securities1 (billions of yen) Full year Quarter Corporates Individuals Corporates Individuals 1,200 1,200 900 900 600 600 300 300 0 0 -300 -300 -600 -600 FY2022/23FY2023/24 FY2021/22 FY2022/23 2Q3Q4Q1Q2Q Corporates2 -136 282267-13727108331 Indiv
Slide 28: Retail related data (4)
NOMURA Retail related data (4) Number of accounts (thousands) FY2021/22 FY2022/23FY2022/23FY2023/24 Mar Mar SepDecMarJunSep Accounts with balance 5,348 5,3535,3595,3525,3535,3955,396 Equity holding accounts 2,955 2,9632,9572,9502,9632,9432,962 NISA accounts opened (accumulated)1 1,589 1,6321,6091,62
Slide 29: Investment Management related data (1)
NOMURA Investment Management related data (1) Full year Quarter FY2022/23FY2023/24 (billions of yen) FY2021/22 FY2022/23QoQYoY 2Q3Q4Q1Q2Q Business revenue 119.9 120.729.931.428.732.533.42.7%11.7% Investment gain/loss 28.1 7.9-3.725.69.1-6.011.7-- Net revenue 148.0 128.626.257.037.826.545.170.1%72.4%
Slide 30: Investment Management related data (2)
NOMURA Investment Management related data (2) Asset inflows/outflows by business1, 2 Full year Quarter FY2022/23FY2023/24 (billions of yen) FY2021/22 FY2022/23 2Q3Q4Q1Q2Q Investment trusts business 1,236156137-100-358649475 of which ETFs 683-250-5-347-22142266 Investment advisory and 830-9168957-134
Slide 31: Wholesale related data
NOMURA Wholesale related data Full year Quarter (billions of yen) FY2022/23FY2023/24 FY2021/22 FY2022/23 QoQYoY 2Q3Q4Q1Q2Q Net revenue 703.1 772.4205.5189.1178.8190.9204.16.9%-0.7% Non-interest expenses 628.6 743.0185.3190.9193.1188.7195.83.7%5.7% Income (loss) before income taxes 74.5 29.420.2-1.9-
Slide 32: Number of employees
NOMURA Number of employees FY2021/22 FY2022/23 FY2022/23FY2023/24 Mar Mar SepDecMarJunSep Japan 15,213 15,13115,38415,28215,13115,38215,158 Europe 2,820 2,9372,8692,9082,9372,9712,993 Americas 2,257 2,3872,3582,3922,3872,4262,486 Asia and Oceania1 6,295 6,3206,5206,6346,3206,4656,492 Total 26,585 26
Slide 33: Disclaimer
NOMURA 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
Slide 34: Nomura Holdings, Inc.
NOMURA Nomura Holdings, Inc. www.nomura.com