Nomura HD’s January-March net profit was 56.8 billion yen – Expansion in each field led by retail

Nomura HD’s January-March net profit was 56.8 billion yen – Expansion in each field led by retail – Bloomberg

According to the consolidated financial results for the January-March period (fourth quarter) of 2024 announced by Nomura Holdings (HD) on the 26th, net income was 56.8 billion yen, 7.7 times higher than the same period last year. The sales department, which handles domestic retail, grew significantly thanks to the strong performance of the Japanese stock market, and the wholesale department also continued to recover.

The average net profit forecast by three analysts compiled by Bloomberg was 72.3 billion yen. Full-year net income for the fiscal year ending March 2024 was 165.9 billion yen, an increase of 79% compared to the previous fiscal year. This was the first full-year profit increase since President Kentaro Okuda took office in April 2020.

The total pre-tax profit of the three main divisions for the January-March period was 77.1 billion yen, 6.5 times higher than the same period last year. The company’s efforts to date have shown results, including a retail strategy focused on wealthy customers and cost reductions in the wholesale division. Stock prices also supported the rise in stock prices, with the Nikkei Stock Average reaching an all-time high of over 40,000 yen in March.

Takumi Kitamura, Chief Financial Officer (CFO), said at the press conference, “With structural changes in the Japanese market as a tailwind, we are leveraging our strengths in our mother market and profit opportunities in overseas businesses to achieve steady results in each business division.” I was able to leave behind.”

Pre-tax profits of three major divisions for the fourth quarter (Year-on-year comparisons in parentheses)
Sales: 38.8 billion yen (3.9x) Wholesale: 20.6 billion yen (14.2 billion yen deficit in the same period last year) Investment management: 17.8 billion yen (9%)

The company has not disclosed its earnings forecast for the current fiscal year (ending March 2025).However, in May last year, the company set a pre-tax profit target of 288 billion yen for the three main divisions as a management target for the fiscal year ending March 2025. It is being announced. This is a 22% increase compared to the previous fiscal year’s 236.8 billion yen.

The target profit for the sales division was 95 billion yen, but the previous year’s result was 122.7 billion yen, the highest level in eight years, which has already been exceeded. Meanwhile, the wholesale division’s target is 130 billion yen. This is 2.4 times the previous year’s result (53.9 billion yen).

CFO Kitamura explained that expenses for the wholesale division temporarily increased due to special factors in the January-March period. “We have been able to confirm that we can generate earnings upside during the market recovery phase,” he said, pointing out that if there were no temporary factors, pre-tax profit for the same period would have exceeded 30 billion yen. He acknowledged that the targets for this term are “not unachievable numbers.”