Nomura reported second quarter net income of ¥103.7 billion ($659 million), beating EPS estimates despite revenue of ¥607.5 billion falling slightly short of consensus. The results were bolstered by record recurring revenue net inflows in the Wealth Management division and a 26% year-on-year increase in Investment Banking revenue, which helped mitigate a sequential cooling in Global Markets performance compared to the previous quarter's record high.
Key Highlights
- Wealth Management recurring revenue assets saw record net inflows of approximately ¥750 billion, with the recurring revenue cost coverage ratio rising to 79%.
- Investment Banking net revenue surged 26% year-on-year, driven by strong momentum in key product areas both in Japan and internationally.
- The company declared a half-year dividend of 35 yen per share, a significant increase from the 27 yen paid in the prior-year period, supported by a first-half ROE of 13.3%.