After achieving record performance, Nomura Holdings, Inc. Sponsored ADR (NMR.US) is aiming for even greater success! Long-term profitability target raised by 50% with an aim to achieve 12% ROE.

Japan's largest securities firm, Nomura Holdings, Inc. Sponsored ADR (NMR.US), has raised its profit target after achieving record annual performance. The company stated in a presentation to investors on Thursday that its goal is to achieve at least 750 billion Japanese yen (approximately 4.7 billion U.S. dollars) in annual pre-tax profit for the fiscal year ending in March 2031, a 50% increase from the previous target of over 500 billion Japanese yen. The company also plans to achieve an annual return on equity (ROE) of at least 10% to 12%, which is higher than the previous target of "8% to 10% or higher." Kentaro Okuda, CEO of Nomura Holdings, Inc. Sponsored ADR, is leading the company towards stable growth. Okuda stated in the presentation that since the company released its "Vision 2030" two years ago, "profitability has steadily improved." He said, "We will continue to strive towards sustainable growth and further improve profitability." Benefiting from the recovery of the Japanese financial markets, Nomura Holdings, Inc. Sponsored ADR achieved record profits for the second consecutive year, despite its fourth quarter performance falling short of analysts' expectations. The performance showed that in the three months ending on March 31, Nomura Holdings, Inc. Sponsored ADR's fourth quarter revenue was 577.2 billion Japanese yen, a 27% increase year-on-year; total annual revenue was 2.17 trillion Japanese yen, a 15% increase year-on-year. In terms of profits, net profit increased by 2.7% year-on-year to 73.9 billion Japanese yen (approximately 463 million U.S. dollars), which was below the consensus four analysts' average estimate of 98.9 billion Japanese yen; annual profits reached a historic high of 362.1 billion Japanese yen. As Japan's largest securities firm, Nomura Holdings, Inc. Sponsored ADR has consistently benefited from global market volatility and the surge in domestic investment and trading activities. With the return of inflation and companies taking measures to enhance shareholder value, the Japanese market has shown signs of improvement in recent years. According to aggregated data, M&A activity in Japan reached a historic high in the last quarter. However, the conflict in the Middle East has put pressure on the global economy, and signs of stress have appeared in the $1.8 trillion private credit market, casting a shadow over Kentaro Okuda's plans to enter alternative assets, which may pose a challenge for him in the coming quarters. The Chief Financial Officer of Nomura Holdings, Inc. Sponsored ADR stated that due to the impact of the Middle East situation, the company has become more cautious in its U.S. macro trading business in the fourth quarter. He pointed out that if the conflict continues, the economy and financial business will be impacted. He also mentioned that while there are still a large number of M&A and equity capital market transactions in preparation, some deals have been delayed.