Company Overview

Nomura Holdings, Inc. is the financial holding company and principal member of the Nomura Group, which stands as Japan's largest investment bank and brokerage group. It, along with its broker-dealer, banking, and other financial services subsidiaries, provides a comprehensive suite of investment, financing, and related services to individual, institutional, and government customers on a global scale, with a primary emphasis on securities businesses.

Nomura Holdings, Inc. offers various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. The company operates through three core segments: Wealth Management, Investment Management, and Wholesale.

Business Segments

Wealth Management

The Wealth Management segment offers a diverse range of financial products and investment consultation services. This division is dedicated to providing comprehensive financial solutions to individual clients, particularly within Japan, assisting them in managing and growing their wealth through various investment products and expert advisory services.

Investment Management

The Investment Management segment provides investment trust management, discretionary investment services, and manages various investment funds. This segment is responsible for managing assets for both institutional and retail clients, overseeing investment strategies and fund operations to drive returns.

Wholesale

The Wholesale segment is actively involved in the sale, trading, and services related to bonds, equities, foreign exchange, and derivatives for institutional investors. This segment represents Nomura's core investment banking arm, dedicated to serving institutional clients with advanced capital markets solutions and sophisticated trading services.

Financial Performance

Recent Financial Results

Nomura Holdings Inc (NYSE: NMR) reported a significant 21% year-on-year increase in group net revenue, reaching JPY1,892.5 billion. Income before income taxes grew substantially by 72% to JPY472 billion, with net income doubling to a record high of JPY340.7 billion for the fiscal year.

Key financial metrics for FY2025 (ending March 31, 2025) include:

- Net Revenue: JPY1,892.5 billion (up 21% year-over-year)

- Income Before Income Taxes: JPY472 billion (up 72% year-over-year)

- Net Income: JPY340.7 billion (record high, up 105%)

- Assets Under Management: JPY89.3 trillion at the end of March 2025

- Return on Equity: 10% for the full fiscal year

- Common Equity Tier 1 Ratio: 14.5% at the end of March 2025

Quarterly Performance Highlights

The company demonstrated robust performance, achieving an 11-year high in wealth management income before income taxes and a 15-year high in the wholesale segment. These strong results underscore the success of Nomura's strategic initiatives across all its business segments.

Strategic Initiatives

Capital Management

Nomura Holdings Inc (NYSE: NMR) has announced a share buyback program with an upper limit of 100 million shares, valued at JPY60 billion. For the period ended March 2025, the company expects to pay an ordinary dividend of Y24 per share, in addition to the previously announced 100th-anniversary commemorative dividend of Y10 per share, bringing the total year-end dividend to Y34. This results in an annual dividend of Y57 per share, representing a dividend payout ratio of 49%.

Major Acquisition

In April 2025, Nomura agreed to acquire Macquarie's U.S. and European public asset management business in an all-cash deal valued at $1.8 billion. This acquisition is expected to add approximately $180 billion in new assets across equities, fixed income, and multi-asset strategies to Nomura's investment management division, bringing its total assets under management (AUM) to approximately $770 billion. The deal, expected to close by the end of 2025, marks Nomura's largest international expansion since it acquired Lehman Brothers' Asian and European assets in 2008.

Historical Background

The history of Nomura began on December 25, 1925, when Nomura Securities Co., Ltd. (NSC) was established in Osaka. It was initially a spin-off from the Securities Department of Osaka Nomura Bank Co., Ltd. (now Resona Bank). The company was named after its founder, Tokushichi Nomura II, a prominent Japanese businessman and investor.

The company has experienced significant growth through strategic acquisitions, most notably in October 2008. During this period, Nomura acquired most of Lehman Brothers' Asian operations, along with its European equities and investment banking units, substantially expanding its global footprint and market presence.

Market Position and Operations

Nomura's marketing slogan, "Connecting Markets East & West," clearly reflects its strategic focus on bridging Asian and Western financial markets. This approach leverages its deep-rooted presence in Japan while actively expanding its international operations.

Nomura operates under a keiretsu structure, with Nomura Holdings, Inc. serving as the holding company for the broader Nomura Group and its principal member companies. In this structure, Nomura Holdings, Inc. does not directly manage the day-to-day operations of its member companies. Instead, it maintains controlling stakes through cross-shareholdings and manages financial assistance among group members, thereby ensuring stability and strategic coordination across the entire conglomerate.

The company remains committed to upholding its leadership position in Japan's financial services sector while simultaneously enhancing its global presence, particularly in the asset management and investment banking domains. With a foundation of strong financial performance and strategic growth initiatives, Nomura is exceptionally well-positioned to capitalize on emerging opportunities in both domestic and international markets.