It was a good quarter for Nomura (NYSE:NMR) given the big pullback in Japanese stocks following the Fed's May rate hike and the overall volatility that has investors shying away from Japan. On a y-o-y basis Nomura increased its net income by 142% on an increase in net revenue of 9.8%. However, on a q-o-q basis it actually saw net income fall by 84.3% on a decrease in net revenue of 36.8%. Nomura really needs the Japanese stock market to heat up again if it wants to report similar increases in y-o-y results.
Chris Oliver of MarketWatch.com wrote that "Analysts say strong earnings had been expected, as turnover on the Tokyo Stock Exchange is running almost double levels for the same quarter in 2005."
Nomura reported Q1 Net revenue of 205.9 billion yen ($1.77b), Non-interest expenses of 172.5 billion yen ($1.48b), Net income of 20.1 billion yen ($172.5m), and a ROE of 3.9%.
Nomura's Q1 dividend will be 8 yen per share as previously announced, payable on September 1st.
Nomura's President and CEO Nobuyuki Koga stated, "The first quarter proved tough overall compared to the previous quarter. However, we continue to make steady progress with our strategy to expand into new areas of growth."
Nomura's ordinary shares (Tokyo: 8604) lost 1.63% to close at 1,992 yen ($17.10), prior to its after hours earnings announcement. Nomura's ADRs closed down 1.14% yesterday at $17.42.
Nomura Holdings (NMR) 1-year chart: