Nomura Holdings, Inc. (NYSE:NMR) Q2 2024 Results Conference Call October 27, 2023 5:30 AM ET
Company Participants
Martin Kay - Chief Executive Officer
Takumi Kitamura - Chief Financial Officer
Conference Call Participants
Natsumu Tsujino - Mitsubishi UFJ Morgan Stanley Securities
Masao Muraki - SMBC Nikko
Kazuki Watanabe - Daiwa Securities
Koichi Niwa - Citigroup Securities
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 First Half and Second Quarter of the Year Ending March 2024, using the document titled, Consolidated Results of Operations. Please turn to Page 2.
Group-wide net revenue for the first half period increased 16% year-on-year to ¥716.7 billion. Income before income taxes grew 138% to ¥103 billion, while net income rose 3.2 x to ¥58.9 billion. Diluted EPS was ¥18.62 and ROE was 3.6%. The six-months period started with international market participants taking a wait-and-see stance as the U.S. faced bank failures and debt ceiling problems that was followed by uncertainty in fixed income markets, as the outlook for the federal funds rate changed dramatically and oil prices spiked, lifting the U.S. 10-year Treasury rate to a 16-year high.
Overall, equity markets remained robust, but towards the end of the first half, investors became nervous over a correction in tech stocks driven by concerns of higher rates for the longer. Japan, meanwhile, witnessed several bright spots for the first time in a while. We saw signs of moving out of deflation, speculation of the BOJ shifting its monetary policy stance and expectations of reforms in the corporate sector aimed at boosting profitability.
All these factors converged to bring in money flows from overseas, lifting the Nikkei stock average to a high level. The market rally is also prompting a nascent shift in willingness to -- of corporates to invest for growth. Amid this environment, three segment income before income taxes increased 79% to ¥89.2 billion, as shown on the bottom right.
Retail saw a marked increase in client engagement in the high net worth space, where we significantly increased the number of sales partners through a reorganization, which ended this spring, aimed at better meeting the needs of our clients, spurred on by the Japan stock market rally, retail reported a strong increase in income before income taxes, which stood at ¥52 billion. Investment management booked ¥2.3 trillion of net inflows, lifting assets under management at end of September to a record high of ¥76.5 trillion, as a result, stable business revenue increased by 9%.