Nomura Holdings, Inc. Q3 FY2026 earnings call

• Return on equity was 10.3% for the third quarter, reaching the 2030 target of 8% to 10% or more for the seventh consecutive quarter. • Group-wide net revenue was JPY 551.8 billion, up 7% quarter-on-quarter. Income before income taxes fell 1% to JPY 135.2 billion, and net income fell 1% to JPY 91.6 billion. • Wealth Management saw net revenue increase 14% and income before income taxes grow 29% versus the previous quarter. Recurring revenue was at an all-time high, and floor revenue increased sharply. • Investment Management's business revenue reached an all-time high since the division's establishment due to the Macquarie acquisition, but profits were impacted by one-time expenses and weaker investment gains. • Wholesale divisions performed solidly, with Global Markets net revenue up 9% and Investment Banking net revenue up 31%. • Banking had net revenue growth and progress on preparations for the deposit sweep service scheduled for the next fiscal year.

Return on equity was 10.3% for the third quarter. Group-wide net revenue was JPY 551.8 billion, up 7% quarter-on-quarter. Wealth Management had net revenue increase of 14% to JPY 132.5 billion, with income before income taxes growing 29% to JPY 58.5 billion. Recurring revenue for Wealth Management reached an all-time high of JPY 52.7 billion, and floor revenue was JPY 79.8 billion. Investment Management had net revenue flat at JPY 60.9 billion, but income before income taxes fell 42% to JPY 17.9 billion due to one-time expenses from the Macquarie acquisition and weaker investment gains. Wholesale net revenue rose 12% to JPY 313.9 billion, with income before income taxes up 17% to JPY 62.3 billion. Banking had net revenue of JPY 13.7 billion, up 7% from the previous quarter, and income before income taxes up 31% to JPY 4.2 billion.

• Resolved to set up a share buyback program from February 17 to September 30, 2026, with an upper limit of 100 million shares and JPY 60 billion in amount. • Will continue to execute strict cost control and work to secure profitability moving forward.

• Segment Other incurred losses because of the downturn in market conditions for digital asset-related businesses. • Volatility in the performance of the crypto asset business. • Group-wide expenses increased due to factors like FX impact, one-off costs, and operating expenses related to acquired businesses.

Q: About Laser Digital's position management and Wealth Management's net inflows sustainability A: Hiroyuki Moriuchi stated that for Laser Digital, it's a new industry with growth prospects, they have a robust risk management framework and are reducing position risk to control volatility. Regarding Wealth Management's net inflows, he refrained from commenting on sustainability but mentioned the Japanese market shift to investment is a sustainable trend Q: About Wealth Management pricing strategy and buyback timing/size A: On pricing strategy, he refrained from answering. On buyback timing, it was due to the clarification of investment capacity after the Macquarie U.S. Asset Management transaction closing. The size was decided after considering investment strategy, future opportunities, and shareholder return Q: About Global Markets performance and Macquarie acquisition impact A: Hiroyuki Moriuchi said Global Markets performance was solid in January with some slowdown in Japan rates business but diversified business absorbing the impact. On the Macquarie acquisition, he said annualized position is neutral but there could be monthly fluctuations Q: About deferred compensation impact and Laser Digital's long-term positioning A: Regarding deferred compensation, he said third quarter impact was about JPY 8 billion, fourth quarter expected same, next year around JPY 15-16 billion. For Laser Digital long-term, they aim to grow the business while controlling risk volume by ensuring business diversity like market making, management, and custody-related businesses Q: About wholesale resource efficiency and private assets strategy A: On wholesale resource efficiency, he said the 7.8% is a result of business mix and they focus on comprehensive risk management. On private assets, he said it's premature to share specific design and need more internal discussion