FY2024/25 3Q results

Income before income taxes and net income both at their highest levels in four and a half years

Results in 3Q came in above our already strong 2Q results, with profits rising to their highest level in four and a half years. Groupwide net revenue came to Y502bn (up 4% QoQ), income before income taxes came to Y138.3bn (up 4%), and net income came to Y101.4bn (up 3%).

Income before income taxes, and net income

2030 ROE target already achieved over three consecutive quarters

Nomura’s annualized ROE came to 11.8% in 3Q, rising for the seventh straight quarter. In May 2024, we formally adopted our 2030 group management vision titled “Reaching for Sustainable Growth”. The plan calls for the consistent achievement of ROE of 8–10% or more, and we have achieved that quantitative ROE target in each of the three quarters since we first announced it.

ROE by quarter

FY2024/25 3Q: Overview of results

Breakdown of FY2024/25 3Q net revenue

Three segment income before income taxes at the highest level in seventeen and a half years

The substantial improvement in ROE rests on longer-term initiatives undertaken in our main three business segments that are now starting to bear fruit. In Wealth Management, for instance, we have been growing revenue assets through provision of comprehensive asset management services, while in Investment Management, we have been working towards growing our assets under management by offering appealing investment products. Fee revenues from those assets rose to a record high in 3Q. In Wholesale, we have been diversifying our sources of revenue in the interest of assembling a business portfolio that is resilient in the face of market fluctuations, and in 3Q we saw growth in revenue across a broad range of products in all three international regions. Thanks also to groupwide cost control initiatives, all three of our main business segments turned in strong performance in 3Q.

Wealth Management

Wealth Management turned in a seventh straight quarter of growth in income before income taxes, and recurring revenue^* reached a record high. Diligent cost control efforts undertaken alongside the steady accumulation of recurring revenue assets helped lift profits in Wealth Management to the highest level in nine and a half years. The recurring revenue cost coverage ratio increased to 72%, marking progress towards our 2030 target of 80%.

*Revenue from client assets and ongoing revenue (investment trusts, discretionary investments, insurance, loans, level fee assets, etc.).

Investment Management

Investment Management similarly delivered strong performance in its asset management business. Sustained net inflows, combined with market factors, lifted assets under management to Y93.5trn, a record high. However, investment gain/loss, which made a major contribution to performance in 2Q, declined quarter on quarter.

Wholesale

Wholesale in particular achieved robust profit growth this quarter—to the highest level in four years. The cost-to-income ratio in the division improved to below 80%, thanks especially to contributions in the three international regions.

For more on each business segment, please see pages 6-13 of the presentation materials linked to here.

Three segment income before income taxes

Highlight: International business

Improved profitability in international business

The highlight of this quarter was further improvement in the profitability of our international businesses. Income before income taxes in the three international regions rose by 30%, to Y51.8bn. Behind this improvement was the abovementioned strong showing in Wholesale, where Global Markets business in particular achieved revenue growth across a wide range of products. Our digital asset operation Laser Digital also contributed to profits.

Please see the links below for more detailed information about our financial results and business strategies.