Nomura today reported its strongest profits since 2006, boosted by its overseas operations.
The Japanese investment bank’s international division today posted its first annual pre-tax profit in seven years.
The bank’s net income for the first three months of the year, its fourth quarter, came in at ¥ 61.3bn (£427m), up from a ¥ 19.2bn loss in the same period last year.
Net revenue for the quarter, meanwhile, was reported at ¥ 349.1bn, up 25 per cent year-on-year.
Nomura’s overseas operations made a profit of ¥ 16.7bn in the fourth quarter, up from a loss of ¥ 16.6bn in the first quarter of 2016. For the year as a whole, profits in the division were ¥ 88.1bn.
Why it’s interesting
The bank, which this time last year announced plans to cut hundreds of investment banking jobs in London and across Europe, also today announced it would be buying back up to ¥ 80bn of shares.
Its profits growth follows on from the likes of JP Morgan Chase, Citigroup and Morgan Stanley in the US.
Nomura today warned that its “market stance remains cautious in preparation for any surprises”, citing “increased geopolitical risks with elections in Europe and the situation in North Korea”.
It also said that April “has generally got off to a slow start” and that “we remain focused on controlling risk and expenses while keeping a close watch on market movements”.
What the bank said
Group chief executive Koji Nagai:
The profitability of our wholesale business improved substantially over the past year with all international regions profitable on a full-year basis...
As we enter our new fiscal year, we remain focused on transforming our business and reinforcing our position as Asia’s global investment bank.”