Nomura Holdings, Inc. Sponsored ADR (NMR.US) achieved record profits for two consecutive years! The core business saw multiple successes, with annual earnings reaching 362.1 billion Japanese yen.

Benefiting from the recovery of the Japanese financial market, Japan's largest securities firm Nomura Holdings, Inc. Sponsored ADR (NMR.US) achieved record profits for the second consecutive year, although its fourth quarter performance fell short of analysts' expectations. The latest earnings report released on Friday showed that in the three months ending March 31, Nomura Holdings, Inc. Sponsored ADR's net profit increased by 2.7% compared to the same period last year, reaching 73.9 billion Japanese yen (approximately $4.63 billion). This figure was lower than the 98.9 billion yen average estimate of four analysts. The full year profit reached a historical high of 362.1 billion yen. Fourth quarter revenue was 577.2 billion yen, up 27% year-on-year; total revenue for the year was 21.7 trillion yen, up 15% year-on-year. As Japan's largest securities firm, Nomura has consistently benefited from global market volatility and the surge in domestic investment and trading activities. However, the Chief Executive Officer Kentaro Okuda's plan to venture into alternative assets has been overshadowed by the pressure on the global economy due to conflicts in the Middle East and signs of stress in the $1.8 trillion private credit market, which could pose a challenge in the coming quarters. Nomura Securities announced record profits Nomura's Chief Financial Officer Hiroyuki Moriuchi stated that due to the impact of the situation in the Middle East, the company became more cautious in its macro trading business in the United States in the fourth quarter. He pointed out that if the conflict continues, the economy and financial business will be affected. Moriuchi also mentioned that while there are still a large number of mergers and acquisitions (M&A) and equity capital market transactions in preparation, some deals have been delayed. The performance in the previous quarter was affected by a loss of 2.9 billion yen related to "economic hedging" trades, as well as a loss of 6 billion yen from equity investments in joint ventures. Nomura's European business recorded a pre-tax loss of 13.8 billion yen, further widening the losses compared to the previous quarter; in the previous quarter, its European business had been partially impacted by setbacks in the digital asset market. Trading business boost With the return of inflation and companies taking measures to increase shareholder value, the Japanese market has shown improvement in recent years. According to compiled data, merger activity in Japan in the previous quarter reached a historic high; additionally, the Nikkei 225 index is currently trading at historical highs after recovering from losses since the beginning of the Iran war. The financial report shows that Nomura's stock trading revenue increased by 26%, climbing for the 12th consecutive quarter, keeping pace with Wall Street companies that also recorded double-digit growth. Fixed income business revenue grew by 18%, marking the first increase in five quarters. Led by equity underwriting business, investment banking revenue grew by 6%, extending its growth streak to the 12th quarter. Wealth management business revenue surged by 33%. Nomura's overseas business achieved a pre-tax profit of 2.9 billion yen, marking the company's 11th consecutive profitable quarter. Prior to the earnings announcement, Nomura's stock price closed down 1.5%. The stock has gained less than 1% so far this year, lagging behind the 19% increase of the Nikkei index. Nomura's full year return on equity (ROE) reached 10.1%, exceeding its target range of 8%-10% or higher.