Nomura Holdings, Inc. (NYSE:NMR) Q2 2025 Earnings Conference Call November 1, 2024 5:30 AM ET

Company Participants

Takumi Kitamura - Chief Financial Officer

Conference Call Participants

Masao Muraki - SMBC Nikko Securities
Kazuki Watanabe - Daiwa Securities
Natsumu Tsujino - Bank of America
Wataru Otsuka - SBI Securities
Koichi Niwa - Citigroup Securities

Operator

Good day, everyone and welcome to today's Nomura Holdings Second Quarter Operating Results for Fiscal Year ending March 2025 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. 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 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. Let me give an overview of our financial results of second quarter of the fiscal year ending March 2025 using the document.

Please turn to Page 2. Group-wide net revenue increased 6% quarter-on-quarter to JPY483.3 billion. Income before income taxes grew 29% to JPY133 billion. Net income was JPY98.4 billion, representing a 43% increase over last quarters. We had a very strong quarter.

Income before income taxes and net income were both at their highest level since the quarter ended June 2020. All three international regions were profitable and some international entities made use of tax loss carried forwards, lowering our effective tax rate to 27%.

EPS was JPY32.26 and annualized ROE was 11.6%, which is at the upper limit of our 2030 quantitative target of ROE of 8% to 10% or more. Three segment income before income taxes shown on the bottom right was JPY122.5 billion, marking the sixth straight quarter of gains. We were able to deliver operating leverage as all divisions booked higher revenues and we maintained our control of costs. In wholesale our cost-to-income ratio improved to 83% and income before income taxes doubled.