Below, we provide a condensed rundown of our earnings performance for the latest quarter.
Summary
- First half: We reported another strong performance in the first half with net income of 196.6 billion yen increasing 18 percent year on year. ROE was over 11 percent, as we continued to strengthen our business model to consistently deliver ROE of 8 to 10 percent or more.
- FY2025/26 2Q: Profits fell QoQ due to gains on sales of real estate in the previous quarter, but ROE reached target of 8-10%+ for sixth consecutive quarter. Income before income taxes of all three international regions was Y44.9bn, marking the ninth consecutive quarter of profitability.
Groupwide net revenue for 1H came to Y1,038.8bn (up 11% YoY), income before income taxes came to Y296.9bn (up 26%), and net income came to Y196.6bn (up 18%).
Maintaining a high level of revenue and profit and implementing thorough cost controls yielded EPS of Y64.53 and annualized ROE of 11.3%, as medium to long-term initiatives steadily bore fruit.
Income before income taxes at the four main segments came to Y238.4bn (up 11%).
Growth in profits from recurring revenue business in Wealth Management and Investment Management made a contribution to steady groupwide performance, and Wholesale continued its self-sustained growth based on the principle of “self-funding”, enabling income before income taxes to rise substantially and drive groupwide earnings. Banking got off to a good start and made progress with preparations for the introduction of a deposit sweep service next fiscal year.
In view of this performance, we will pay an interim dividend of Y27 per share to shareholders of record as of the end of September 2025.
For 2Q, groupwide net revenue came in at Y515.5bn (down 2% QoQ), income before income taxes came to Y136.6bn (down 15%), and net income came to Y92.1bn (down 12%).
Excluding gains on the sale of real estate recorded in the previous quarter, net revenue was up 10%, and net income was up 40%, reflecting steady growth. Earnings per share for the quarter were Y30.49 and return on equity was 10.6%, reaching the quantitative target for 2030 of at least 8 to 10% for the sixth consecutive quarter.
In addition, Wealth Management’s recurring revenue assets, which generate steady earnings, and Investment Management’s assets under management grew steadily, representing solid progress in expanding the foundation for growth.
Income before income taxes in the three international regions rose 63% to Y44.9bn, marking the ninth consecutive quarter of profitability.
Income before income taxes, and net income
ROE by quarter
2030 ROE target achieved over six consecutive quarters
FY2025/26 2Q: Overview of results
Breakdown of FY2025/26 2Q net revenue
Wealth Management
As major equity markets rose to fresh highs during the quarter, client activity increased and flow revenue etc.1, registered strong growth. Recurring revenue and the balance of recurring revenue assets2 both reached record-high levels as recurring revenue assets saw a net inflow for the 14th consecutive quarter. In addition, the recurring revenue cost coverage ratio3 for the last four quarters came to 70%, making steady progress toward the 2030 target of 80%.
1. Flow revenue, etc.: Revenue from transactions (brokerage revenue, consulting-related revenue), interest income, etc. other than from loans
2. Recurring revenue assets: Assets including investment trusts, discretionary investments, insurance, loans, and level fees that yield revenue
(recurring revenue: revenue arising from asset balances or revenue that arises regularly)
3. Recurring revenue divided by non-interest expenses
Investment Management
The asset management business remained robust, and asset management fees, a key source of business revenue, reached a new high. In addition, assets under management reached a fresh high of Y101.2trn thanks to tenth consecutive quarter of net inflows. Alternative assets4 under management rose to a new high as the result of solid net inflows.
4. Alternative assets: Assets that fall outside of the traditional categories of stocks, bonds, and cash
Wholesale
In Global Markets, Equities revenue rose to a new high5, and Fixed Income achieved strong revenue growth in the Americas. Investment Banking maintained robust momentum, stepping up further the overall growth trend in revenue and income. We ranked top in the Japan-related M&A league table, with multiple transactions involving financial sponsors and moves to take companies private enabling us to maintain a dominant market share.
5. Since March 2017, when the comparable data set begins
Banking
Established in April, Banking expanded its balances and maintained a solid performance in the lending business and trust/agent business. Preparations for the deposit sweep service scheduled for introduction in FY2026/27 are progressing as planned.
See slides 7–15 of our financial results presentation materials for more detailed commentary on each business segment.
For more detailed information about our financial results and business strategies, see the links below. Please also see the Nomura Holdings website to learn more about our Corporate Philosophy, businesses, and performance.
Related Links
- Financial results: Financial Results | Quarterly Earnings | Financials | Investor Relations | NOMURA
- Business Strategy: Presentations | Investor Relations | NOMURA
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Nomura Holdings IR Department +81(3)5255-1000