NMR — Nomura Holdings, Inc.

Summary of Nomura Holdings Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Net Revenue: JPY 515.5 billion, down 2% quarter-over-quarter.
• Income Before Income Taxes: JPY 136.6 billion, a decrease of 15%.
• Net Income: JPY 92.1 billion, down 12%.
• Earnings Per Share (EPS): JPY 30.49.
• Return on Equity (ROE): 10.6%, achieving the 2030 target of 8%-10% for the sixth consecutive quarter.
• International Income Before Income Taxes: Rose 63% to JPY 44.9 billion.
• Wealth Management: Net revenue increased 10% to JPY 116.5 billion; income before income taxes grew 17% to JPY 45.5 billion.
• Investment Management: Net revenue of JPY 60.8 billion, up 20%; income before income taxes rose 43%.
• Wholesale Division: Net revenue of JPY 279.2 billion, up 7%; income before income taxes increased 27% to JPY 53.1 billion.
• Banking Division: Net revenue flat at JPY 12.9 billion; income before income taxes fell 12% to JPY 3.2 billion.

2. Strategic Updates and Business Highlights

• Wealth Management: Achieved record highs in recurring revenue assets and net inflows for 14 consecutive quarters.
• Investment Management: Assets under management reached JPY 101.2 trillion, with significant net inflows.
• Wholesale Division: Continued strong performance in equities and investment banking, with record high revenues in Global Markets.
• Banking Division: Progressing towards the introduction of a deposit sweep service in FY 2026-27.
• Cost Management: Maintained a cost coverage ratio of 71%, contributing to profit stability.

3. Forward Guidance and Outlook

• October Revenue Trends: Wealth Management and Wholesale divisions are performing well, with expectations of continued strong revenues.
• Investment Banking: Anticipated strong deal flow in the second half, particularly in advisory and DCM.
• CET1 Ratio: Expected to decrease post-Macquarie acquisition, but management remains committed to maintaining a target range of 11%-14%.

4. Bad News, Challenges, or Points of Concern

• Fraudulent Trading Impact: Phishing scams resulted in a JPY 4.8 billion negative impact on profits, although measures are being implemented to enhance security.
• Personnel Expenses: Increased compensation and benefits costs raised concerns among analysts regarding sustainability relative to revenue growth.
• Tax Burden: Rising tax rates despite increasing pretax income, leading to lower net profits.
• Market Volatility Risks: Ongoing concerns regarding the stability of markets and the potential for normalization in equity revenues.

5. Notable Q&A Insights

• Personnel Expenses: CFO explained that increases in compensation were linked to performance bonuses and retirement payments, which were higher than usual.
• CET1 Ratio and Buybacks: Management emphasized a balanced approach to capital allocation, maintaining a commitment to shareholder returns while considering the impact of the Macquarie acquisition.
• Market Risks: Analysts inquired about risk management practices in light of recent market events, with the CFO assuring that due diligence and stress testing are ongoing.
• Equity Performance Sustainability: CFO indicated that while current equity performance is strong, normalization is expected, and the firm is diversifying its product offerings to mitigate risks.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, and challenges faced by Nomura Holdings as discussed in the Q2 2026 earnings call.