NMR — Nomura Holdings, Inc.

Summary of Nomura Holdings Q4 2026 Earnings Call

1. Key Financial Results and Metrics

• Full Year Results:

  • Group net revenue increased by 15% year-on-year to JPY 2,167.7 billion.
  • Income before income taxes grew 14% to JPY 539.8 billion.
  • Net income rose 6% to JPY 362.1 billion, marking a record high for the second consecutive year.
  • Return on Equity (ROE) was 10.1%, meeting the target range of 8%-10% set for 2030.
  • Ordinary dividend proposed at JPY 24 per share, totaling JPY 51 for the year with a payout ratio of 41%.

• Q4 Results:

  • Group net revenue rose 5% quarter-on-quarter to JPY 577.2 billion.
  • Income before income taxes fell 20% to JPY 107.7 billion, and net income decreased by 19% to JPY 73.9 billion.
  • Earnings per share at JPY 24.34 and ROE at 8%.

2. Strategic Updates and Business Highlights

• Wealth Management:

  • Income before income taxes increased by 23%, driven by a recurring revenue model and strong KPIs.
  • Recurring revenue reached an all-time high of JPY 56.8 billion, with net inflows of recurring revenue assets exceeding JPY 400 billion.

• Investment Management:

  • Net revenue surged by 42% to JPY 86.2 billion, with stable business revenue at an all-time high.
  • Assets under management rose over 50% to JPY 137 trillion.

• Wholesale:

  • Revenue growth across all regions, with Global Markets and Investment Banking achieving record highs.
  • Investment banking revenue remained robust, driven by M&A activity.

• Banking Division:

  • Continued expansion and progress towards implementing deposit sweep.

3. Forward Guidance and Outlook

• The company aims to maintain an ROE of 8%-10% and income before income taxes exceeding JPY 500 billion by 2030.
• In April, Wealth Management revenues remained stable, while Wholesale revenues increased significantly due to a rebound in equity markets.
• The company is optimistic about client activity and revenue growth in the upcoming quarters, despite geopolitical uncertainties.

4. Bad News, Challenges, or Points of Concern

• Q4 Declines:

  • The drop in income before income taxes and net income in Q4 was attributed to decreased profits from affiliates and an impairment loss in Investment Management.

• Expense Increases:

  • Groupwide expenses rose by 13% quarter-on-quarter, influenced by impairment losses and regulatory changes affecting compensation.

• Market Risks:

  • Concerns about geopolitical risks affecting market conditions and client sentiment.
  • The company is closely monitoring the credit cycle and risks associated with private credit investments.

5. Notable Q&A Insights

• Private Credit:

  • CFO Hiroyuki Moriuchi provided details on the company's diversified exposure to private credit, emphasizing a cautious approach to growth amid market volatility.

• Cost Management:

  • Discussions on controlling costs amid inflation pressures, with a focus on balancing revenue growth with expense management.

• Future ROE Targets:

  • There is ongoing discussion about potentially raising ROE targets beyond the current 8%-10% range, reflecting a desire for continued improvement and competitiveness.

• Geographical Performance:

  • The Americas showed slower growth compared to other regions, attributed to seasonality and market conditions, but recovery is anticipated.

This summary encapsulates the key aspects of Nomura Holdings' Q4 2026 earnings call, highlighting both achievements and challenges faced by the company.