Consolidated Results of Operations
First quarter, year ending March 2022
(US GAAP)
Nomura Holdings, Inc.
July 2021
Connecting Markets East & West
© Nomura
Outline
Presentation
- Executive summary (p. 2)
- Overview of results (p. 3)
- Business segment results (p. 4)
- Retail (p. 5-6)
- Investment Management (p. 7-8)
- Wholesale (p. 9-11)
- Non-interestexpenses (p. 12)
- Robust financial position (p. 13)
- Funding and liquidity (p. 14)
Financial Supplement
- Consolidated balance sheet (p. 16)
- Value at risk (p. 17)
- Consolidated financial highlights (p. 18)
- Consolidated income (p. 19)
- Main revenue items (p. 20)
- Consolidated results: Income (loss) before income taxes by segment and region (p. 21)
- Segment "Other" (p. 22)
- Retail related data (p. 23-26)
- Investment Management related data (p. 27-28)
- Wholesale related data (p. 29)
- Number of employees (p. 30)
Executive summary
FY2021/22 1Q highlights
- Income before income taxes: Y78.5bn; Net income1: Y48.5bn; ROE2: 7.1%; EPS3: Y15.59
- Three segment income (loss) before income taxes recovered from last quarter; Investment Management had a strong quarter; Although Wholesale performance was again impacted by transactions with a US client, we exited all remaining positions, while Fixed Income booked higher revenues QoQ and Investment Banking continued to see strong momentum
- Segment Other performance also improved mainly due to upturn in gain/loss related to affiliate companies (impairment loss booked last quarter no longer present and realized gains booked from sale of equity stake)4
- Three segment income before income taxes of Y35.6bn Retail
- Efforts to grow client assets resulted in net inflows into investment trusts and discretionary investments each month
- Retail client assets at record high of Y127trn driven by positive contribution from net inflows of cash and securities
- Retail clients continued to sit on the sidelines over fears of another wave of the pandemic and a sharp decline in share prices in early May, leading to lower sales of stocks and investment trusts QoQ
Investment Management
- Inflows lifted AuM to record high of Y65.8trn |
- Investment gain/loss up significantly on realized and unrealized gains of about Y24bn due to IPO of |
Nomura Capital Partners investee company and American Century Investments related gain/loss |
Income (loss) before income taxes and net income (loss)1
Firmwide | (billions of yen) | |
181.8 | ||
142.5 | 131.3 | |
83.6 | 98.4 | 78.5 |
67.6 | 48.5 |
Income (loss) before income taxes | -155.4 |
Net income (loss) | |
-166.1 | |
FY2020/21 | FY2021/22 | |||
1Q | 2Q | 3Q | 4Q | 1Q |
Three segment income (loss) before income taxes6
125.1 | 126.7 |
100.4 |
contribution of Y12.9bn |
Wholesale
- Booked additional loss arising from transactions with a US client of Y65.4bn5 |
Wholesale
35.6
-104.5
- | Excluding this trading loss, Global Markets revenues declined 8% QoQ; Equities revenues slowed, |
while Fixed Income revenues grew driven by spread products such as Credit and Securitized Products | |
- | Investment Banking revenues remained strong for third straight quarter on contributions from M&A |
business and solid performance in ECM/DCM |
Investment Management
Retail
FY2020/21 | FY2021/22 | |||
1Q | 2Q | 3Q | 4Q | 1Q |
1. | Net income (loss) attributable to Nomura Holdings shareholders. | 2. | Calculated using annualized net income attributable to Nomura Holdings shareholders for each period | |
3. | Diluted net income (loss) attributable to Nomura Holdings shareholders per share. | 2 | ||
4. | Booked impairment charge of Y47.7bn in FY2020/21 4Q related to investment in Nomura Real Estate Holdings, and booked realized gain on partial sale of stake in Nomura Research Institute of Y36.2bn in FY2021/22 1Q. | |||
5. | Of Y65.4bn additional loss arising from transactions with a US client, Y56.1bn booked as trading loss in Equities revenues and Y9.3bn booked as loan loss provision in expenses. | |||
6. | On April 1, 2021, Asset Management and Merchant Banking were dissolved and Investment Management newly established. As a result, historical figures have been reclassified in line with the disclosure format for FY2021/22. |
Overview of results
Highlights
(billions of yen, except EPS and ROE)
Net revenue
Non-interest expenses
Income (loss) before income
taxes
Net income (loss)1
EPS2
ROE3
FY2021/22FY2020/21
1Q4Q
353.3170.0
274.7336.1
78.5-166.1
48.5-155.4
Y15.59-Y50.78
7.1% | - | |
QoQ
108%
-18%
-
-
-
FY2020/21
1Q
460.7
278.9
181.8
142.5
Y45.65
21.0%
YoY
-23%
-2%
-57%
-66%
-66%
- Net income (loss) attributable to Nomura Holdings shareholders.
- Diluted net income (loss) attributable to Nomura Holdings shareholders per share.
- Calculated using annualized net income attributable to Nomura Holdings shareholders for each period
3
Business segment results
Net revenue and income (loss) before income taxes1
(billions of yen) | FY2021/22 | FY2020/21 | QoQ | FY2020/21 | YoY | ||||||||||||
1Q | 4Q | 1Q | |||||||||||||||
Net revenue | Retail | 85.0 | 96.8 | -12% | 81.1 | 5% | |||||||||||
Investment Management | 63.5 | 54.0 | 17% | 39.7 | 60% | ||||||||||||
Wholesale | 132.8 | -0.8 | - | 248.7 | -47% | ||||||||||||
Subtotal | 281.2 | 150.1 | 87% | 369.4 | -24% | ||||||||||||
Other* | 68.7 | 15.3 | 4.5x | 89.0 | -23% | ||||||||||||
Unrealized gain (loss) on investments in equity | 3.4 | 4.6 | -27% | 2.3 | 46% | ||||||||||||
securities held for operating purposes | |||||||||||||||||
Net revenue | 353.3 | 170.0 | 108% | 460.7 | -23% | ||||||||||||
Income (loss) Retail | 19.0 | 26.1 | -27% | 15.1 | 26% | ||||||||||||
before income | Investment Management | 44.9 | 35.2 | 27% | 22.2 | 103% | |||||||||||
taxes | |||||||||||||||||
Wholesale | -28.4 | -165.9 | - | 87.9 | - | ||||||||||||
Subtotal | 35.6 | -104.5 | - | 125.1 | -72% | ||||||||||||
Other* | 39.6 | -66.2 | - | 54.4 | -27% | ||||||||||||
Unrealized gain (loss) on investments in equity | 3.4 | 4.6 | -27% | 2.3 | 46% | ||||||||||||
securities held for operating purposes | |||||||||||||||||
Income (loss) before income taxes | 78.5 | -166.1 | - | 181.8 | -57% | ||||||||||||
*Additional information on "Other" (1Q) | Realized gain on partial sale of stake in the affiliate company, Nomura Research Institute (Y36.2bn) | ||||||||||||||||
Income related to economic hedging (Y3.4bn) | |||||||||||||||||
Loss on changes to own and counterparty credit spread relating to Derivatives (Y1.8bn) | |||||||||||||||||
1. On April 1, 2021, Asset Management and Merchant Banking were dissolved and Investment Management newly established. As a result, historical figures have been reclassified in line with the disclosure format | 4 | ||||||||||||||||
for FY2021/22. |
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Nomura Holdings Inc. published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 07:28:08 UTC.