Japan's brokerage witnesses 670% surge in Q1 profit

Nomura Q1 profits: Nomura Holdings, Japan's premier brokerage and investment bank, unveiled a remarkable 670 per cent surge in quarterly net profit on Friday compared to the previous year. The surge comes as its retail and investment banking segments marked their highest levels of income in eight years.

The January-March net profit soared to 56.8 billion yen ($363.87 million), a substantial increase from 7.3 billion yen reported a year earlier. During the same period last year, concerns over a global banking crisis rattled global markets, impacting Nomura's investment banking operations.

These latest financial results underscore Nomura's ongoing recovery journey, following its decision to revise its profit targets last May amid global market uncertainties.

Nomura's retail business received a significant boost from the Japanese stock market rally witnessed between January and March, which propelled the Nikkei 225 index (N225) to record highs. This surge lifted Nomura's retail income to its highest level in eight years, building on the momentum from the previous quarter.

Furthermore, investment banking revenue from both domestic and international deals reached its peak since the 2016–17 financial year, representing a significant milestone despite a decline in global fee pools.

Nomura's robust performance in both retail and investment banking segments signals its resilience in navigating through market challenges, positioning itself for sustained growth in the foreseeable future.

(with Reuters inputs)