Japan's largest investment bank Nomura delivered a record annual profit of ₹362.1 billion for the second consecutive year, representing an increase from ₹340.7 billion in the previous year. According to reports from The Economic Times, the firm also reported a modest uptick in earnings for the January–March quarter, with net income rising 3% year-on-year to ₹73.9 billion. The strong performance was driven by robust performance in both wholesale and domestic wealth management segments.
The bank's wholesale segment, comprising investment banking and trading operations, delivered its strongest annual revenue performance since the division's inception in April 2010. As reported by The Economic Times, this achievement reflects Nomura's strategic pivoting towards building a more stable earnings base with greater emphasis on fee-driven businesses that are less exposed to market condition swings. The division's strong performance contributed significantly to the overall record annual profit.
Despite geopolitical risks, Nomura sees no structural disruption from the Iran-Israel/US war on growth factors for the domestic market. According to Chief Financial Officer Hiroyuki Moriuchi, as reported by Reuters, while there are various risk factors present, the structural challenges facing Japanese companies, such as a declining population and overseas expansion aims, remain unaffected by the Middle East situation. The firm noted that while some decision-making may be delayed for M&A and equity capital markets, the long-term structural issues for Japanese companies remain intact.
Despite the record profit announcement, Nomura shares ended 1.5% lower at ₹1,312 despite the Nikkei 225 closing 1% higher at 59,716.18, representing a 576-point rally over the Thursday close. As reported by The Economic Times, the Japanese brokerage continues to hold a strong foothold in the domestic wealth management space, supported by steady recurring fee income and elevated market volatility during the quarter that boosted transaction-linked revenues. The firm's domestic wealth management segment remains a key contributor to its stable earnings base.
