Global Earnings | Nomura's first-quarter profit jumps 39%, boosted by markets

Nomura Holdings booked a rise of 39% in first-quarter net income as its trading business benefited from volatile markets and record high stock prices boosted wealth management fees, it said on Friday.

Nomura follows major U.S. banks in posting strong trading profits as war in the Middle East has disrupted global energy flows ‌and supply ⁠chains while ⁠investor excitement over AI pushed the benchmark Nikkei to a record high in June.

Despite the ​swings, Nomura sees a profitable dealmaking environment to come, its chief financial officer said.


"Although we're anticipating ​a higher volatility environment, our pipeline of financing deals has grown since last year and I think corporate activity will stay at this high level," Hiroyuki Moriuchi ​told a press briefing in Tokyo.

Net income at ⁠Japan's largest ‌investment bank and brokerage rose to 145.6 billion yen ($890.74 million) ​in the ​April-June period, versus 104.6 billion in the year-ago period.

Revenue in the ⁠global markets division grew 43% over the first quarter of ​the previous year, which itself had been a strong quarter ​as news of U.S. President Donald Trump's sweeping tariffs had also upended markets, so boosting trading revenues.

Nomura has also proven to be a key beneficiary of Japan's slow emergence from deflation, which has structurally raised demand for financing, mergers and acquisitions and growth initiatives among Japanese companies.

Investment banking revenue reached 50.4 billion ‌yen in the quarter, a record for the first quarter.

"Geopolitical risks mean market movements will be volatile and there's a chance that ​some deals ​will be delayed," Moriuchi cautioned. "But ⁠that's not our main scenario."

As inflation eats into savings, Japanese retail investors have sought out higher-yielding assets, lifting Nomura's wealth management business, which holds the dominant position ​among high net worth individuals in Japan.

Income before taxes has grown steadily over the past year to hit 71.1 billion yen, some 83% higher than the year-earlier quarter.

Nomura has focused for years on building stable fee-based revenues, such as those from managing wealth assets, that are less vulnerable to fluctuating market conditions.