Nomura reports solid Q1 profit, boosted by real estate sales

Published 29/07/2025, 14:20
Nomura reports solid Q1 profit, boosted by real estate sales

Investing.com -- Nomura reported first-quarter pre-tax profit of ¥160.3 billion and net profit of ¥104.6 billion, both figures aligning with market expectations.

The pre-tax profit exceeded analyst estimates of ¥150.4 billion and consensus forecasts of ¥127.2 billion, while net profit came in slightly below the estimated ¥106.3 billion but above the consensus of ¥95.1 billion.

Excluding one-off factors, the adjusted pre-tax profit was ¥106.1 billion, representing an increase of ¥11.1 billion quarter-over-quarter. The one-time items included a substantial ¥56 billion pre-tax gain from real estate sales, private equity-related gains/losses, and ¥6.6 billion in damages paid related to unauthorized access.

The combined pre-tax profit for Nomura’s four business segments increased by ¥13.8 billion from the previous quarter. Fixed Income, Currencies and Commodities (FICC) revenue rose by ¥19 billion quarter-over-quarter, while equities revenue declined by ¥2.8 billion.

Nomura’s FICC performance was particularly noteworthy, remaining nearly flat when excluding foreign exchange effects, despite U.S. banks experiencing approximately 9% quarterly declines in this segment and challenging conditions for Japanese Government Bonds.

The wealth management division saw a quarterly profit increase of ¥2.8 billion, driven by increased bond and equity trading in June, which offset slightly weaker performance through the end of May.

The company reported a loss in its European operations and faced a higher-than-expected effective tax rate of 33%, influenced by domestic capital gains.

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