Nomura Holdings, Inc. (NYSE:NMR) Q1 2025 Results Conference Call July 30, 2024 5:30 AM ET
Company Participants
Takumi Kitamura - CFO
Conference Call Participants
Masao Muraki - SMBC Nikko Securities
Kazuki Watanabe - Daiwa Securities
Mia Nagasaka - Morgan Stanley
Wataru Otsuka - SBI Securities
Koichi Niwa - Citigroup
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 quarter of the fiscal year ending March 2025.
Please turn to Page 2. Group-wide net revenue came in at ¥454.4 billion, up 2% over last quarter. Pre-tax income grew 12% to ¥102.9 billion, while net income was ¥68.9 billion, an increase of 21% compared to last quarter. As you can see on the upper right, our earnings momentum has continued for 5 consecutive quarters. EPS was ¥22.36 and annualized ROE 8.1%. These results make a good start in our journey toward achieving our 2030 numerical target to consistently achieve ROE of 8% to 10% or more, as announced at our Investor Day in May.
As shown on the bottom right, three segment income before income taxes increased 12% to ¥86.6 billion. Wealth Management and investment management saw client assets continued to grow on the back of inflows, while stable recurring revenue and business revenue reached all-time highs. We are making steady progress in expanding our stable businesses, as announced at our Investor Day. While Wholesale income before income taxes is up slightly, quarter-on-quarter, we further diversified our revenue sources, as Spread Products such as Securitized Products and Credit had a strong quarter, and equities remained robust.
Next let's look at the performance of each business, starting with Wealth Management on Page 5. All percentages quoted from now on referred to quarter-on-quarter comparisons. Wealth Management first quarter net revenue increased 5% to ¥114 billion and income before income taxes gained 9% to ¥42.3 billion, representing the highest levels in 9 years since fiscal year 2015-2016 first quarter. Thanks to our large-scale reorganization last spring and the further deepening of our segment-based approach, we were able to deliver results as the mindset of our clients undergo a major shift from savings to investment.
In contrast to the relentless rally in Nikkei last quarter, the market remained range bound throughout this quarter. Yet, we were able to deliver higher revenues compared to the strong prior quarter in each segment by offering services aligned to client needs. We made progress in our asset management recurring revenue businesses with recurring revenue at record high of ¥45.8 billion. As we grow revenues, we kept expenses down, particularly non-personnel expenses, resulting in a higher recurring revenue cost coverage ratio of 64%.