NMR — Nomura Holdings, Inc.

Summary of Nomura Holdings Q3 2026 Earnings Call

1. Key Financial Results and Metrics

• Return on Equity (ROE): 10.3%, meeting the target range of 8%-10% for the seventh consecutive quarter.
• Net Revenue: JPY 551.8 billion, up 7% quarter-over-quarter.
• Income Before Income Taxes: JPY 135.2 billion, down 1%.
• Net Income: JPY 91.6 billion, down 1%.
• Earnings Per Share (EPS): JPY 30.19.
• Year-to-Date Performance: For the first nine months, income before income taxes rose 15% year-on-year to JPY 432.1 billion, and net income increased by 7% to JPY 288.2 billion.

2. Strategic Updates and Business Highlights

• Wealth Management: Achieved a 30% growth in net revenue quarter-over-quarter, driven by strong client inflows and a recurring revenue cost coverage ratio improvement to 71%.
• Investment Management: Revenue reached an all-time high due to the acquisition of Macquarie Group's public asset management business, though profits were impacted by one-time expenses.
• Wholesale Division: Both Equities and Investment Banking reported record revenues, with Investment Banking net revenue up 31%.
• Share Buyback Program: Announced a buyback program for up to 100 million shares, totaling JPY 60 billion, aimed at enhancing shareholder returns.

3. Forward Guidance and Outlook

• January Performance: Wealth Management net revenue is stable compared to Q3, with favorable client sentiment despite some market selling pressures.
• Investment Banking Pipeline: Remains solid, although the start of Q4 has been slightly slower.
• Cost Management: Continued focus on strict cost control to secure profitability amidst rising expenses.

4. Bad News, Challenges, or Points of Concern

• Investment Management Profit Decline: Profits fell 42% due to one-time acquisition costs and weaker investment gains.
• Digital Asset Business Losses: The Laser Digital segment incurred losses due to market downturns in digital assets, raising concerns about volatility and position management.
• Increased Expenses: Group-wide expenses rose by 10%, driven by one-off costs and FX impacts, which could pressure margins.
• Market Conditions: Domestic rates business faced challenges due to increased volatility and client caution, potentially impacting future performance.

5. Notable Q&A Insights

• Position Management in Digital Assets: CFO Hiroyuki Moriuchi acknowledged the volatility in the digital asset market and emphasized ongoing efforts to manage positions carefully to mitigate risks.
• Wealth Management Margin Sustainability: There was cautious optimism about maintaining high margins, with a noted shift from savings to investment among Japanese retail investors.
• Buyback Timing: The decision for a Q3 buyback was influenced by clarified investment capacity post-acquisition and market expectations.
• Future of Laser Digital: The company aims to grow its digital asset business while controlling short-term volatility, indicating a long-term commitment despite current challenges.

Overall, Nomura Holdings reported solid performance across its divisions, with strategic initiatives aimed at enhancing shareholder value, although challenges in the digital asset space and rising expenses present potential headwinds.