Japan’s biggest investment banking firm Nomura Holdings delivered consecutive record-breaking annual earnings and stated that Middle East conflicts involving the U.S., Israel and Iran haven’t caused lasting disruption to fundamental growth drivers in Japan’s domestic market.
The Tokyo-based financial services company has spent several years shifting its strategy toward steady fee-generating revenue streams that remain more stable during volatile market periods.
“Markets have been favourable up to now, but there are various risk factors at present,” Chief Financial Officer Hiroyuki Moriuchi said at a briefing.
“For M&A and equity capital markets, some decision making may be held up, but looking at the mid- to long-term, the structural challenges facing Japanese companies, such as a declining population and overseas expansion aims, are unaffected by the situation in the Middle East,” Moriuchi explained.
The investment bank’s quarterly earnings from January through March increased 3% compared to the previous year, reaching 73.9 billion yen, equivalent to $462.60 million. Annual profits climbed to 362.1 billion yen from the prior year’s 340.7 billion yen.
Nomura holds a leading position in Japan’s wealth management sector, supported by a solid foundation of consistent fee income. The company also gained from transaction fees created by market fluctuations during the quarter.
The firm’s wholesale operations, encompassing investment banking and trading activities, achieved its strongest annual revenue performance since launching in April 2010.
