Nomura is big in Japan, but weak in Europe

 
Tim Wallace
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NOMURA’S shares shot up yesterday as investors welcomed healthy growth in the Japanese banking group’s profits.

Net income came in at ¥52bn (£298m) in the second quarter of the bank’s financial year, up 39 per cent on the same three-month period of 2013. Revenues climbed five per cent to ¥373.8bn, while non-interest expenses increased six per cent to ¥299.8bn.

By business unit, revenues in retail banking fell one per cent on the year to ¥177.9bn. But that was more than offset by a four per cent rise in wholesale revenues to ¥190.6bn and a 16 per cent jump in asset management revenue to ¥21.7bn.

The wholesale markets in particular were boosted by a recovery in trading levels in Japan and the rest of Asia. However, weak activity kept revenues down in Europe.

Nomura plans to shift some operations away from London.

“Given the current state of the regulatory environment and our business in each region, we are shifting market risk which has been concentrated in London to Japan,” said chief finance officer Shigesuke Kashiwagi.

Nomura’s shares rose 2.26 per cent.

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