After reporting a standout performance in the , Nomura Holdings, Inc. has announced its consolidated financial results for the second quarter and first half of its 2020 fiscal year.
For context, Nomura’s 2020 fiscal year ends on the 31st of March 2020. Therefore, the second quarter is from the 1st of July 2019 until the end of September this year, whereas the first half is from the 1st of April 2019 until September 30th, 2019.
Net revenue for the second quarter of Nomura’s 2020 fiscal year was ¥383.4 billion ($3.5 billion). When measured against the previous quarter, which posted net revenue of ¥332 billion, it is higher by 15 per cent. On a year-on-year comparison, Q2’s net revenue has grown by 36 per cent.
Income before taxes reached ¥128.5 billion. This represents an uptick of 72 per cent from the first quarter of the 2020 fiscal year. On an annual comparison Q2 of 2020’s income before tax has grown by 275.1 times, according to the report.
For the first half of fiscal 2020, Nomura reported net revenue of ¥715.4 billion. Comparing this with H1 of fiscal 2019, it has risen by 29 per cent.
Nomura Wholesale revenues fall QoQ
Taking a look at the performance of Nomura’s wholesale division, which comprises its Global Markets services, which offers research, sales and trading of global securities, such as foreign exchange (forex) and Investment Banking, which offers capital raising and advisory services.
During the second quarter of 2020 fiscal year, the wholesale unit booked net revenue of ¥156.7 billion. Against the first quarter, net revenue has actually fallen by 2 per cent. However, it has still increased by 6 per cent on a yearly comparison.
For the division, income before taxes was ¥18.9 billion. Again this is down by 5 per cent from the previous quarter. Nonetheless, it is still 3.8 times stronger than the same period last year.
According to the report, in Global Markets, equities revenues increased quarter-on-quarter, thanks to solid trading in Japan and the Americas. However, fixed incomes revenues declined by 6 per cent compared to the previous quarter, which reported solid revenues for the asset.
Commenting on the results, Nomura President and Group CEO Koji Nagai said: “Core business performance slowed amid US-China trade friction and heightened geopolitical risk which saw challenging market conditions continue.
“In Retail, total sales declined as investor sentiment worsened and we focused on rebuilding our retail sales structure by reassigning our sales staff and integrating branch offices.
“Wholesale booked lower Fixed Income revenues compared to a strong previous quarter, while Equities and Investment Banking delivered a robust performance…”
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