Nomura Q4 Earnings Call Highlights

Key Points

• Record full-year results: Group net revenue rose 15% to JPY 2,167.7 billion and net income hit JPY 362.1 billion (a second consecutive record) with ROE of 10.1%, and Nomura set an annual dividend of JPY 51 (ordinary JPY 24) with a 41% payout ratio.
• Quarterly profit slid: Q4 income before taxes fell 20% to JPY 107.7 billion and net income dropped 19% to JPY 73.9 billion, driven by lower affiliate-related profit, an impairment loss at an investee and higher group expenses (up ~13% QoQ).
• Mixed asset-management trends: Wealth Management posted record recurring revenue (JPY 56.8 billion) and JPY 422.8 billion of net inflows, while Investment Management hit a record JPY 136.9 trillion AUM but logged JPY 279 billion of net outflows and some impairment charges; private-credit exposure totals roughly $2.4 billion across businesses.

Nomura NYSE: NMR reported higher full-year revenue and profit for its fiscal year ended March 2026, while fourth-quarter income declined on lower affiliate-related profit and an impairment charge tied to an investee company, according to comments from Chief Financial Officer Hiroyuki Moriuchi on the company’s earnings call.

Full-year results set a second straight record

Moriuchi said group net revenue rose 15% year over year to JPY 2,167.7 billion, while income before income taxes increased 14% to JPY 539.8 billion. Net income rose 6% to JPY 362.1 billion, which he described as a record high for the second consecutive year.

Nomura posted full-year return on equity (ROE) of 10.1%, which Moriuchi said was “on target for the second year in a row” following the firm’s stated goal of achieving an ROE of 8%–10% or more by 2030. He added that four-segment income before income taxes reached an all-time high of JPY 506.9 billion.

For shareholder returns, Moriuchi said Nomura expects to pay an ordinary dividend of 24 yen per share, bringing the annual dividend to JPY 51 per share. He cited a dividend payout ratio of 41%.

Fourth-quarter profit fell amid impairment and lower affiliate profit

In the fourth quarter, Nomura’s group net revenue rose 5% quarter over quarter to JPY 577.2 billion, but income before income taxes fell 20% to JPY 107.7 billion. Net income declined 19% to JPY 73.9 billion. Earnings per share were JPY 24.34 and ROE was 8%, Moriuchi said.

He attributed the decline in quarterly income to multiple factors, including “a decrease in the amount of profit recognized from affiliates in the Other segment,” as well as “an impairment loss at an investee company in Investment Management,” even as Wholesale segment net revenue rose.

Wealth Management profitability held up as recurring revenue hit a record

Wealth Management net revenue was “more or less flat” versus the prior quarter at JPY 133.1 billion, Moriuchi said, while income before income taxes increased 5% to JPY 61.2 billion. He highlighted a recurring revenue cost coverage ratio of 72% and said the segment maintained a margin on income before income taxes above 40%.

Recurring revenue reached an all-time high of JPY 56.8 billion, Moriuchi said, and net inflows of recurring revenue assets exceeded JPY 400 billion again during the quarter.

Nomura’s Wealth Management total sales rose 75% quarter over quarter to around JPY 11.7 trillion, which Moriuchi said was “largely due to major tender offers totaling JPY 4 trillion.” He added that even excluding those tender offers, product sales were “at a high level.”

Key wealth metrics included net inflows of recurring revenue assets of JPY 422.8 billion, which marked the 16th consecutive quarter where inflows exceeded outflows, Moriuchi said. The number of flow business clients rose by about 200,000 from the prior quarter to 1.74 million.

Investment Management AUM hit a record; outflows and impairments weighed

Investment Management net revenue increased 42% quarter over quarter to JPY 86.2 billion, while income before income taxes was “more or less flat” at JPY 18.1 billion, Moriuchi said. He noted that business revenue reached an all-time high, driven by growth in existing operations and the expansion of international business through acquisitions, but added that expenses tied to acquired businesses and impairment losses on an equity stake were also recognized.

Assets under management (AUM) reached a record JPY 136.9 trillion at the end of March, Moriuchi said, though he also reported net outflows of JPY 279 billion. He said domestic investment trust operations had inflows of JPY 816 billion, while domestic investment advisory international business saw outflows of about JPY 1 trillion, “mainly from business targeted for acquisition.”

Discussing the outlook, Moriuchi said Nomura expects industry trends in the U.S. to continue to pressure active mutual fund flows “for now,” and that the company aims to bring net flows “close to neutral as soon as possible” by enhancing marketing and expanding active ETF SMA opportunities. He also said alternative assets under management rose to a record JPY 3.6 trillion, up about JPY 300 billion from the end of December.

Wholesale revenue dipped slightly; Global Markets and Investment Banking remained elevated

Wholesale net revenue fell 2% quarter over quarter to JPY 308.1 billion, while income before income taxes declined 31% to JPY 43.2 billion, Moriuchi said. Global Markets net revenue slipped 2% to JPY 252.5 billion and Investment Banking net revenue fell 3% to JPY 55.6 billion.

Within Global Markets, Fixed Income revenue declined 8% to JPY 125.3 billion. Moriuchi said rates revenue was weak in the Americas but rose in Japan, while foreign exchange emerging markets revenue “offset some of the weakness” as client flows were captured. Equities revenue increased 6% to JPY 127.2 billion, and Moriuchi said Equity Products revenue hit a record high, helped by strong financing and derivatives performance in Japan and AEJ.

Investment Banking revenue, though down 3%, remained “at a high level,” Moriuchi said. He pointed to continued advisory momentum from involvement in many M&A deals, primarily in Japan, including domestic realignment, privatizations, and cross-border transactions. He also said equity capital markets revenue rose partly due to large convertible bond and public offering deals, while the Solutions business performed well by meeting demand for unwinding cross-shareholdings.

During the Q&A, Moriuchi addressed questions on the drivers of the fourth-quarter Wholesale profit decline, citing both revenue and expenses. On revenue, he pointed to seasonality tied to end-of-fiscal-year risk position controls and a sharp escalation in Middle East tensions in mid-to-late March that prompted a more defensive stance. On costs, he cited impacts from compensation regulation changes, fiscal year-end bonus adjustments, and higher professional fees, including fees incurred ahead of delayed revenue recognition in certain SP&PC pipeline activity.

Banking grew revenue but invested for expansion; expenses rose across the group

Nomura’s Banking segment net revenue increased 6% quarter over quarter to JPY 14.5 billion, while income before income taxes fell 27% to JPY 3.0 billion, Moriuchi said. Loans outstanding grew as recognition of loan offerings increased, and the investment trust balance rose due to market factors and new trust launches. He said income declined due to higher expenses, including IT spending, business process standardization, and taxes and public charges, characterizing the spending as “an upfront investment aimed for future business expansion.”

Group-wide expenses were JPY 469.5 billion in the quarter, up about 13% (approximately JPY 53 billion) quarter over quarter, Moriuchi said. He cited extraordinary items including impairment losses tied to an equity stake in an investee company, compensation and benefits related to changes in remuneration regulation, and the effects of changes to the method of presentation of financial statements. Excluding those factors, he said the company believes its cost structure is “appropriate for the revenue growth.”

Capital, private credit exposure, and management’s early read on April

Nomura’s Common Equity Tier 1 (CET1) ratio was 12.9% at the end of March, down 0.1 percentage point from 13.0% at the end of December, Moriuchi said.

He also provided detail on private credit exposure, saying it is “properly diversified and managed.” He broke down exposures as:

• About $800 million in lender financing for private credit funds within Wholesale
• About $1.2 billion in direct lending to SMEs within Wholesale
• About $400 million in Investment Management investment holdings related to private credit

On sector composition, Moriuchi later cited healthcare and business services as larger portions, with additional exposure across software and computer services, consumer, engineering, and construction, along with regional diversification.

Asked about balance sheet use and potential capital impacts, Moriuchi said Wholesale uses the balance sheet “based upon self-funding within the bounds of additional capital” and that the CET1 impact from business expansion would not be significant. He added that management wants a “balanced portfolio” over the mid to long run.

Looking to April, Moriuchi said Wealth Management net revenue was “largely at the same level as in the fourth quarter,” with client sentiment recovering despite geopolitical uncertainty. In Wholesale, he said net revenue had been “trending much higher than in the fourth quarter,” supported by sharply rebounding equity markets, stronger client activity, and solid equity products revenue, with rates also monetizing client flows amid moderate volatility.

About Nomura NYSE: NMR

Nomura Holdings, Inc is a global financial services group headquartered in Tokyo, Japan, with origins dating back to 1925 when Tokushichi Nomura II established the firm as a securities business. Over the decades Nomura has grown from a domestic securities house into a multinational financial services firm by expanding its product offerings and international footprint. The company is publicly listed and operates through a network of subsidiaries and branches to serve a broad client base.

Nomura's principal businesses encompass retail brokerage, wholesale (investment banking and global markets), and asset management.

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