Nomura Holdings, Inc. (NMR) Q3 2023 Earnings Call Transcript

For the period ending December 31, 2022

February 1, 2023 4:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, everyone, and welcome to today's Nomura Holdings Third Quarter Operating Results for Fiscal Year Ending March 2023 Conference Call. Please be reminded that today's conference call is being recorded at the request of the hosting company. [Operator Instructions] During the presentation, all the telephone lines are placed for listen-only mode. A question-and-answer session will be held after the presentation.

Please note that this telephone conference contains certain forward-looking statements and other projected results, which involve known and unknown risks, delays, uncertainties and other factors not under the company's control, which may cause actual results performance or achievement of the company to be materially different from the results, performance or other expectations implied by those projections.

Such factors include economic and market conditions, political events and investor sentiment, liquidity of secondary markets, level and the volatility of interest rates, currency exchange rates, security valuations, competitive conditions and size, number and timing of transactions.

With that, we would like to begin the conference. Mr. Takumi Kitamura, Chief Financial Officer. Please go ahead.

Takumi Kitamura

Good evening. This is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the third quarter of the fiscal year ending March 2023, using the document titled Consolidated Results of Operations.

Please turn to Page 2. Group wide net revenue for the quarter was JPY393.7 billion, up 24% from last quarter. As you can see on the right, income before income taxes increased 165% to JPY83.6 billion, underscoring a rebound in performance since bottoming out in the first quarter.

Net income was JPY66.9 billion. EPS was JPY21.5 and ROE came in at 8.5%. The market was clouded by uncertainty in October as central banks in Europe and the U.S. shifted to monetary tightening and concerns grew over a recession. This gradually eased as the pace of rate hikes slowed, and there was a pause in appreciation of the U.S. dollar, leading to higher risk appetite among investors and a rally in equity markets.

December brought a surprise move from the BOJ in yields curve control. Investors rushed into the bank and insurance sectors while selling real estate and export related stocks. The yen appreciation and the bear market prompted investors to buy on the dips, and sales increased as expectations rose over a revival in Japanese equities.