Below, we provide a condensed and straightforward rundown of our earnings performance for the latest quarter and fiscal year.
Summary
- Full year: FY2024/25 net income at a record high, and the ROE was 10%, marking a strong performance
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FY2024/25 4Q: ROE of 8.2% achieved, already in our ROE target range of 8-10% or more by 2030
Net revenue and income before income taxes were down in all three segments versus the previous quarter, when performance was especially strong, but this latest quarter provided evidence of solid progress with our efforts to improve the stability of groupwide revenues.
Record-high net income, with net revenue of Y1,892.5bn (up 21% YoY), income before income taxes of Y472.0bn (up 72%), and net income of Y340.7bn (2.1x the year-earlier level).
We made further headway in our medium to longer-term efforts, including growth in stable revenues*, the diversification of Wholesale revenues, and cost controls. Income before income taxes in the three international regions came to Y137.0bn as profitability improved substantially.
* Recurring revenue at Wealth Management, business revenue at Investment Management, etc
Profits were up steeply thanks to growth in net revenue in all segments and success in controlling costs.
Wealth Management
Wealth Management income before income taxes reached an 11-year high, while recurring revenue* came in 30% higher YoY on the back of progress made with the provision of comprehensive asset management.
* Recurring revenue: Revenue from client assets and ongoing revenue (investment trusts, discretionary investments, insurance, loans, level fee assets, etc.)
Investment Management
Investment Management achieved its highest income before income taxes since the division was established in April 2021. Business revenue was similarly at its highest level since the division’s inception, while investment gain/loss also showed an improvement.
Wholesale
Wholesale income before income taxes reached a 15-year high, rising sharply on the back of revenue growth in all business lines and regions, coupled with thoroughgoing cost controls.
*Since FY2002/03, when the disclosure of geographic information began.
- DPS: In view of our strong performance, for the period ended March 2025, we expect to pay an ordinary dividend of Y24 per share, in addition to the 100th anniversary commemorative dividend of Y10 per share we previously announced, making a total year-end dividend of Y34. This brings the annual dividend to Y57 per share, for a dividend payout ratio of 49%.
- We resolved to set up a share buyback program in order to raise capital efficiency and ensure a flexible capital management policy, and to deliver shares on exercise of stock-based compensation. The program will run from May 15 to December 30 and have an upper limit of 100 million shares with the upper limit of the aggregate amount of the repurchase price being 60 billion yen.
Group net revenue fell 10% QoQ to Y452.7bn, income before income taxes fell 29% to Y97.7bn, and net income was down 29% at Y72.0bn. Although this represented a slowdown versus the previous quarter, when performance was robust, we achieved ROE of 8.2%, exceeding the lower end of our ROE target range of 8-10% or more by 2030 for a fourth consecutive quarter. Our international operations were profitable again, for the seventh quarter in a row.
Steady growth in stable revenues, strength maintained in Equities and Investment Banking (recurring revenue and business revenue). However, amid uncertain market conditions, Wealth Management saw a decline in flow revenue and Wholesale saw lower Fixed Income revenues.
Wealth Management
Wealth Management generated record-high recurring revenue, which is a stable revenue source and our recurring revenue cost coverage ratio for the quarter rose sharply to 76%. Flow revenue, etc.* fell, however, amid an uncertain market outlook.
We achieved all four of the KPI targets set for FY2024/25: net inflows of recurring revenue assets, recurring revenue assets, flow business clients, and workplace services, in each case substantially exceeding the target.
* Revenue from transactions (brokerage revenue, consulting-related revenue), interest income, etc. other than from loans.
Investment Management
Investment Management generated its highest ever business revenue, which is a stable form of revenue source, since the division was established in April 2021, led by strong performance in the asset management business, but the investment gain/loss deteriorated. Assets under management exceeded the KPI target for FY2024/25 and the business saw its eighth straight quarter of net inflows. Despite an adverse effect from yen appreciation, alternative assets under management hit a record high thanks to net inflows into a new private assets’ product, etc.
Wholesale
Equities and Investment Banking maintained revenue growth. Fixed Income revenues slowed relative to the previous quarter, when they were strong, while Equities revenues rose for the fifth straight quarter on a solid performance in the Americas.
Investment Banking achieved the highest quarterly net revenue on record since comparisons possible in FY2016/17. There were particularly large contributions from Japan and EMEA.
For the full year, the cost-to-income ratio came to 84% and revenue/modified RWA came to 7.6%, beating the Wholesale fiscal year KPI targets of 86% and at least 6%, respectively. Income before income taxes came to 3.1x the previous year’s level, as revenues rose by 22% while costs rose by only 10%.
For more on each business segment, please see pages 7-14 of the presentation materials.
Please see the links below for more detailed information about our financial results and business strategies.
Related Links
- Financial results: Financial Results｜Quarterly Earnings | NOMURA
- Business strategies: Presentations | NOMURA
Direct inquiries to:
Nomura Holdings IR Department +81(3)5255-1000