Nomura's Q1 Net Profit Surges 52% on Trading, Investment Banking Strength

Nomura Holdings (NMR.US) has reported a substantial 52% year-over-year increase in net profit for the first quarter, achieving 104.6 billion yen (approximately $705.7 million) for the period from April to June. This remarkable growth was primarily driven by the robust performance of its trading and investment banking divisions. The global markets division saw a 7% increase in revenue, largely influenced by the market volatility triggered by Trump's tariff proposals.

Despite the global market volatility, Nomura's strong performance in the first quarter has further solidified its position as the leading investment bank and brokerage firm in Japan. This achievement follows the record-high annual profit the company achieved in the fiscal year ending March 2025, reinforcing its strategic goal of becoming a global financial powerhouse.

Nomura's global markets division benefited from increased demand for macro and spread products, which contributed to the overall revenue growth. Although global mergers and acquisitions (M&A) transactions were hindered by trade uncertainty, Nomura managed to capitalize on significant domestic deals, such as the privatization of NTT and Toyota Motor Corporation's listed subsidiaries.

To mitigate the impact of long-term performance volatility, Nomura has been actively expanding its wealth and asset management businesses to secure more stable revenue streams. Leveraging the trend of Japanese households shifting from savings to investments, Nomura has become the top wealth management institution in Japan. This division contributed nearly 40% of the company's pre-tax profit for the quarter, while the asset management division reached a record-high of 94.3 trillion yen in assets under management.

In addition to its core business activities, Nomura generated 56 billion yen in pre-tax income from the sale of a Tokyo real estate project through its subsidiary. Furthermore, in April, Nomura Securities announced the acquisition of Macquarie Group's asset management business, adding approximately $180 billion in client assets. This acquisition is part of Nomura's broader strategy to expand its global footprint, despite facing challenges in previous overseas expansion efforts, such as the acquisition of Lehman Brothers' assets in 2008, which were later written down.