Nomura warns of slowing trading revenue growth as boom cools
Japan's biggest brokerage said revenue from its wholesale division was "progressing slightly above year-on-year" for the quarter as of Sept. 14.
Nomura Holdings has reported that revenue from its global trading and investment banking business has seen modest growth in the current quarter, indicating a slowdown from the double-digit growth experienced in the previous two quarters. The Tokyo-based company stated on Wednesday that wholesale division revenue in Japan's largest brokerage had been progressing slightly above the year-on-year rate as of September 14.
Operations related to equity products have remained solid, while those for foreign exchange and emerging markets have shown recovery, but rates trading has been particularly challenging, according to Nomura.
Wholesale net revenue increased by 41% in the fiscal first quarter, ending June 30, as Nomura benefited from stock-market volatility driven by speculation over artificial intelligence and the Middle East conflict. Generating more than half of the company's overall income, the wholesale business played a crucial role in Nomura's record annual profit last fiscal year.
However, Nomura's shares fell by 0.9% in Tokyo trading on Thursday, in contrast to a 1% gain in the benchmark Topix index. Despite the stock's rise of about 25% this year, approaching levels from 2008 before the financial crisis peak, trading performance has been diverse among Wall Street banks this quarter, with Goldman Sachs reporting softer fixed income and JPMorgan Chase forecasting gains in trading revenue.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
