Nomura (NMR.US) H1 net profit up 27% year-on-year, wealth management net inflows hit record high

Nomura Holdings, Inc. Sponsored ADR (NMR.US) released on October 28 its results for the second quarter of fiscal 2026/27 (JulySeptember), ended September 2026: net revenue was JPY607.5 billion (approximately US$3.9 billion), up 18% year-on-year; net profit attributable to shareholders was JPY103.7 billion (approximately US$659 million), up 13% year-on-year and down 29% quarter-on-quarter. Cumulative net profit for the first half of the fiscal year was JPY249.3 billion, up 27% year-on-year; pre-tax profit was JPY359.5 billion, up 21% year-on-year, with combined pre-tax profit across the four major business segments up 50%. First-half ROE was 13.3%, and the second-quarter dividend was JPY35 per share. By business segment, wealth management was the biggest highlight: net revenue was JPY141.5 billion, up 22% year-on-year, and pre-tax profit was JPY65.6 billion, surging 44%. As momentum in the full-service asset management business strengthened, net inflows into recurring-revenue assets reached a record high of approximately JPY750 billion. Recurring revenue also hit a record high, and the recurring-revenue cost coverage ratio rose to 79%. The banking segment's pre-tax profit was JPY4.4 billion, up 37% year-on-year. On a quarter-on-quarter basis, however, all businesses generally pulled back from record levels in the first quarter: the wholesale segment's pre-tax profit was JPY46.1 billion, down 51% quarter-on-quarter and down 13% year-on-year, with a 26% year-on-year increase in investment banking net revenue partly offsetting the slowdown in the global markets business; the investment management segment's pre-tax profit was JPY27.4 billion, down 11% year-on-year. Management said the transformation is reflected in the revenue mix, with "stable revenue" up about 60% year-on-year in the first half, reflecting continued expansion of asset-management-type businesses. The company will continue to solidify its revenue base by further diversifying wholesale business revenue sources. In the Tokyo market, Nomura's shares closed at JPY1,441.5 that day, edging up 0.17%, with a muted market reaction. Nomura Holdings, Inc. Sponsored ADR closed up 1.33% at US$9.11 in the U.S. market.