Increased revenue but not increased profits! Nomura Holdings, Inc. Sponsored ADR (NMR.US) Q3 net profit declined by 10% year-on-year, planning to repurchase 60 billion yen in stocks.

Japan's largest securities firm, Nomura Holdings, Inc. Sponsored ADR (NMR.US), reported its financial results for the third quarter ending on December 31, 2025, on Friday. The company's net revenue was 551.8 billion yen, a 10% increase year-on-year; pre-tax profit was 135.2 billion yen, a 2% decrease year-on-year; net profit was 91.6 billion yen, a 10% decrease year-on-year; earnings per share were 30.19 yen, compared to 33.08 yen in the same period last year. Q3 non-interest expenses increased by 15% year-on-year to 416.5 billion yen; the effective tax rate was 30.1%, higher than the 24.7% in the same period last year and the 29.9% in the previous quarter. By division, the Wealth Management division saw a 19% increase in net revenue to 132.5 billion yen, and a 31% increase in pre-tax profit to 58.5 billion yen year-on-year. Both regular income and fund inflow revenues reached historical highs since the division launched its comprehensive asset management business in March 2020. The Investment Management division's net revenue increased by 33% to 60.9 billion yen, with pre-tax profit decreasing by 5% to 17.9 billion yen year-on-year. With the successful acquisition of the investment management business of Macquarie Group in the US and Europe, the asset management scale of the Investment Management division reached a historical high of 134.7 trillion yen. Despite reaching its highest revenue level since the division's establishment, pre-tax income decreased from the previous quarter due to reduced investment gains and one-time expenses related to the acquisition. The Wholesale division, covering investment banking and trading departments, performed well due to the rise in global stock markets and active trading in the Japanese market. Net revenue increased by 8% to 313.9 billion yen, and pre-tax profit remained at 62.3 billion yen year-on-year. The stock trading business achieved a new high in net revenue for the second consecutive quarter, while the investment banking business also saw record high net revenue. The Banking division's net revenue increased by 12% to 13.7 billion yen, with pre-tax profit decreasing by 10% to 4.2 billion yen year-on-year. Apart from the Wholesale division, which is sensitive to market fluctuations, Nomura has been striving to establish a more stable revenue base in its Wealth Management and Investment Management divisions in recent years. Nomura's Wealth Management division dominates the Japanese market and has been steadily growing as Japanese savers seek higher returns on their assets. In addition, the company announced plans to buy back up to 60 billion yen worth of shares, representing a maximum of 3.2% of its shares.