Nomura Holdings, Inc. (NMR) Q4 2022 Earnings Call Transcript

For the period ending March 31, 2022

April 26, 2022 5:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, everyone, and welcome to today's Nomura Holdings Fourth Quarter and Full Year Operating Results for Fiscal Year ended March 2022 Conference Call. Please be reminded that today's conference call is being recorded at the request of the hosting company. Should you have any objections, you may disconnect at this point in time. During the presentation, all the telephone lines are placed for listen-only mode. The 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 sentiments, liquidity of secondary market, level, and volatility of interest rates, currency expansion rate, security valuation, 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 full year and fourth quarter of the fiscal year ended March 2022 using the document titled Consolidated Results of Operations.

Please turn to page two. First, let's look at the full year period. Bottom left, net revenue was ¥1,363.9 billion, down 3% year-on-year. Income before income taxes declined 2% to become ¥226.6 billion.

The chart on the bottom right gives a breakdown of income before income taxes. The third line from the bottom shows segment Other improved from last year to ¥15.8 billion, while the three segment total declined 17% to ¥205.2 billion. This was mainly due to retail and investment management.

Retail investor sentiment weakened due to further waves of the pandemic, shifts in Central Bank monetary policy, and heightened geopolitical risks. This led to a slowdown in flow revenues such as sales of stocks and investment trusts.

Investment Management reported a worsening in investment gain/loss due to market factors. That said, both divisions booked growth in stable revenues. Retail continued to evolve its business away from the traditional securities business to an asset consulting business. And during the full year, we saw ongoing inflows into investment trusts and discretionary investments lifting recurring revenue. We also reported an increase in consulting-related revenue from insurance and M&A.