{"id":23950,"date":"2023-04-26T08:16:41","date_gmt":"2023-04-26T08:16:41","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/japans-nomura-q4-net\/"},"modified":"2023-04-26T08:19:31","modified_gmt":"2023-04-26T08:19:31","slug":"japans-nomura-quarterly-profit","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/japans-nomura-quarterly-profit\/","title":{"rendered":"Japan&#8217;s Nomura quarterly profit dives 76% as global banking worries hit"},"content":{"rendered":"<p>By Makiko Yamazaki<\/p>\n<p>TOKYO (Reuters) -Nomura Holdings Inc, Japan&#8217;s biggest brokerage and investment bank, reported a 76% drop in its quarterly net profit as worries about a global banking crisis roiled the global markets and hit its investment banking business.<\/p>\n<p>Nomura joined Wall Street investment banks such as Goldman Sachs Group in reporting a slump in dealmaking fees as global mergers and acquisitions activity shrank to the lowest level in more than a decade in the last quarter.<\/p>\n<p>&#8220;The environment was extremely severe for investment banking,&#8221; Chief Financial Officer Takumi Kitamura told a news conference on Wednesday. &#8220;We are not at all satisfied with the results.&#8221;<\/p>\n<p>Investors grew more cautious about volatile markets as a banking crisis that started with the collapse of Silicon Valley Bank spread to Europe with the sale of Credit Suisse Group AG to its Swiss rival UBS Group AG.<\/p>\n<p>Nomura&#8217;s January-March profit came in at 7.4 billion yen ($55.37 million), down from 30.96 billion yen a year earlier.    <\/p>\n<p>Its wholesale division, which houses its investment banking and trading businesses, sank in the red for the second consecutive quarter with a pre-tax loss of 14.2 billion yen.<\/p>\n<p>Costs also ballooned at the division due to global inflation and a weaker yen. &#8220;We can&#8217;t retain or hire people unless we raise salaries in this inflationary environment,&#8221; Kitamura said.<\/p>\n<p>For the year ended March, net profit fell 35% from the previous year to 92.8 billion yen, missing an average analyst estimate in a Refinitiv poll by 32%.<\/p>\n<p>The lacklustre results throw into doubt Nomura&#8217;s ambitious midterm plan announced last year, which called for annual pre-tax income of up to 390 billion yen for its three core divisions in the year to March 31, 2025. <\/p>\n<p>Kitamura said the company would rein in costs mainly by streamlining legacy system infrastructure. He also expressed hopes for a comeback in deals once the markets gain more clarity about the inflation and interest rate outlooks later this year.<\/p>\n<p>Nomura said it would boost its dividend payout ratio to at least 40% from 30% and buy back up to 1.1% of own shares worth 20 billion yen. <\/p>\n<p>($1 = 133.6400 yen)<\/p>\n<p> (Editing by Murali Anantharaman and Tomasz Janowski)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/japans-nomura-quarterly-profit\/file-photo-logo-of-nomura-securities-is-seen-at-the\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3P07Z-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3P07Z-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Makiko Yamazaki TOKYO (Reuters) -Nomura Holdings Inc, Japan&#8217;s biggest brokerage and investment bank, reported a 76% drop in its quarterly net profit as worries about a global banking crisis roiled the global markets and hit its investment banking business. Nomura joined Wall Street investment banks such as Goldman Sachs Group in reporting a slump [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":23951,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[1223],"class_list":["post-23950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3P07Z-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=23950"}],"version-history":[{"count":4,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23950\/revisions"}],"predecessor-version":[{"id":24060,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23950\/revisions\/24060"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/23951"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=23950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=23950"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=23950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}