Nomura Holdings, Inc. Q1 FY2026 earnings call

• Group net revenue JPY523.3 billion, up 16% QoQ; income before income taxes up 64% to JPY160.3 billion; net income JPY104.6 billion, up 45% QoQ. - Sale of fixed assets by Nomura Properties contributed ~JPY56 billion to income before taxes in Q1. - Wealth management had 16% growth in flow revenue despite stock market decline in April. - Investment management assets under management at end of June at record JPY94.3 trillion. - Wholesale global markets revenue up 8%, investment banking revenue down 27% but Q1 high since FY2016/17. - Banking division as new independent division showed growth with buoyant KPIs.

Wealth Management: Q1 net revenue increased 6% to JPY105.8 billion, income before income taxes rose 8% to JPY38.8 billion. Flow revenue grew 16% due to tailored consulting services. Recurring revenue assets had net inflow for 13th consecutive quarter. Investment Management: Net revenue up 18% to JPY50.6 billion, income before income taxes up 39% to JPY21.5 billion. Assets under management at end of June hit record JPY94.3 trillion. Wholesale: Net revenue up 1% to JPY261.1 billion, income before income taxes up 12% to JPY41.9 billion. Global markets revenue up 8%, investment banking revenue down 27% but still highest Q1 since FY2016/17. Banking Division: New division established in April, net revenue JPY12.8 billion, up 12%; income before income taxes JPY3.6 billion, up 19%.

• Attained ROE target of consistently achieving 8%-10% or more ROE for five straight quarters. - Wealth management expected to shine with improving market conditions and continuing inflows of recurring revenue assets. - Wholesale net revenue tracking in line with Q1 level. - Plan to accelerate implementation of sophisticated security measures and roll out passkey authentication system this fall.

• Phishing scams leading to illegal trading in client accounts, with JPY6.6 billion compensation related to losses. - Market uncertainties due to US tariff policy and geopolitical risk affecting market environment. - Impact of yen appreciation on expenses and potential challenges in risk management.

Q: Watanabe of Daiwa Securities asked about phishing scam compensation and whether it'll expand, and reasons for FIC weakness vs equity strength.

A: Hiroyuki Moriuchi said compensation up to end of June was reflected in other expenses, and for FIC, Japan rates lagged in April but improved later, while equity strength was due to Americas customer flows in derivatives.

Q: Tsujino of BofA Securities inquired about global markets July situation and EMEA FIC loss reasons.

A: Company rep said global markets business in line with Q1 level, EMEA FIC loss due to market factors affecting digital asset business and regulatory impact on personnel costs.

Q: Muraki of SMBC Nikko Securities asked about capital policy priority, Macquarie closure update, and risk-weighted assets trend.

A: Hiroyuki Moriuchi said capital policy prioritizes business strategy investment, Macquarie closing process smooth with no critical issues, and RWA increasing due to current business exposure.

Q: Sato from JPMorgan Securities confirmed special factors in segments and ETF outflow status.

A: Company rep said special factors in others segment, ETF outflow situation settled by end of June.

Q: Nagasaka of Morgan Stanley MUFG Securities asked about corporate sentiment in investment banking and client behavior in wealth management.

A: Hiroyuki Moriuchi said Japan corporate sentiment unique with strong enthusiasm, and wealth management clients remained calm with improved literacy.

Q: Otsuka from SBI Securities asked about phishing approach and policy holding sale.

A: Company rep said restitution approach for phishing, and policy holding-related activity pace expected to normalize.