Nomura Holdings Q2 2027 Earnings Call Transcript

Nomura Holdings (NYSE:NMR) reported second-quarter financial results on Wednesday. The transcript from the company’s second-quarter earnings call has been provided below.

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View the webcast at https://webcast.net-ir.ne.jp/86042610e/index.html

Summary

Nomura Holdings reported a solid ROE of 13.3% for the first half of the fiscal year, with income before income taxes increasing 50% across all divisions.

Wealth Management’s recurring revenues rose 20% to approximately 31 trillion yen, while Investment Management’s assets under management grew by 50 trillion yen, driven by acquisitions.

Net revenue for the second quarter was 308.9 billion yen, down 16%, with income before income taxes at 46.1 billion yen.

The company is committed to maintaining a payout ratio of 40% or higher, with plans for share buybacks depending on growth opportunities.

Management highlighted a robust pipeline in Investment Banking, especially within public corporate bonds, and aims to capitalize on market opportunities amid changing financial cycles.

The company is focused on managing costs effectively, with strategic investments in AI and system architecture aimed at reducing expenses in the long term.

Management noted that market uncertainty persists but remains optimistic about future opportunities, particularly in the domestic market.

Full Transcript

OPERATOR

If you want to cancel the question. The first question. Murakistan, please go ahead.

Murakistan (Analyst)

Global Markets October revenue. You made a comment in your presentation. Core… French government bonds leverage this month. There have been various press reports, but has there been impact to revenues, or is there any particular position you are watching very closely? Second question: Nomura Holdings investment and M&A pipeline, Wealth Management investment, or entry into the market? There were press reports once again. Overseas Asset Management organic growth versus M&A pipeline—inorganic—the outlook, and based upon your outlook, how much funds would be made available for share buyback?

OPERATOR

The next question comes from voa securities. Ms., please go ahead. The next is. Please go ahead. The next question is by security. Please go ahead. Yes, we hear your voice. Go ahead. The next question comes from UBS Securities. Niwa-san, please.

Niwa (Analyst at UBS Securities)

I am Niwa from UBS Securities. I have two questions, but can you hear me? Thank you. Two questions regarding IM Division. Valuation loss was incurred in the second quarter related to seed money, and currently Nomura Holdings as a whole and IM Division — to update, what is the magnitude of total investment amount and on what these investment mean, and what was the reason? And what’s the quarterly volatility? And the second question: on hyperscaler finance, at this point in time for Nomura, what is the size of business opportunities for you? You have spoken about risk management, so realistically in what condition, what size of revenue is being generated and potential? Could you speak about your perspective? Thank you.

Thank you very much. So could I have your qualitative comment? In the domain of hyperscaler finance, is there unique features that’s unique to that? You can speak about the background: your peers, Japanese peers, they seem to be quite aggressive. So in comparison to them, what is your evaluation of Nomura’s position? Thank you. Thank you very much. That deepened my understanding. Thank you very much.

OPERATOR

Once again, thank you for joining us. And that concludes today’s conference call. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.