Nomura Q3 Earnings Call Highlights

Core Viewpoint - Nomura reported strong third-quarter operating results for the fiscal year ending March 2026, with a notable return on equity and solid performance across its main divisions, although losses in the "other" segment related to digital assets partially offset these results [4][7]. Financial Performance - Group-wide net revenue totaled JPY 551.8 billion, reflecting a 7% increase quarter-over-quarter [3][7]. - Pre-tax income for the four main divisions rose 8% to JPY 142.9 billion, the highest level in 18.5 years [2][7]. - Return on equity was reported at 10.3%, marking the seventh consecutive quarter above the target range of 8%–10% [3][7]. Segment Performance - Wealth Management: Net revenue increased 14% quarter-over-quarter to JPY 132.5 billion, with a pre-tax margin above 40% and record recurring revenue asset net inflows of JPY 503.9 billion [6][9]. - Investment Management: Achieved a record AUM of JPY 134.7 trillion, but pre-tax income fell 42% due to one-time acquisition costs and weaker gains [5][12]. - Wholesale: Net revenue increased 12% to JPY 313.9 billion, with significant contributions from both Global Markets and Investment Banking [16]. Shareholder Returns - Nomura announced a share repurchase program with an upper limit of 100 million shares and a total of JPY 60 billion, aimed at enhancing shareholder returns and capital efficiency [1][7]. Future Outlook - The company expects approximately $100 million in integration costs over the next two years following the Macquarie acquisition, while maintaining capital strength with Tier 1 capital at JPY 3.6 trillion and a CET1 ratio of 12.8% [5][21]. - Management indicated that Wealth Management net revenue is tracking evenly with third-quarter levels, while the Investment Banking pipeline remains solid despite a slower start [22].