News Column

Earnings at Nomura slide as investors cool on Abenomics

May 1, 2014

CITY A.M. REPORTER



NOMURA, Japan's biggest investment banking and brokerage group, reported its first profit decline in seven quarters yesterday as waning enthusiasm over Prime Minister Shinzo Abe's economic stimulus policies brought down stock trading volumes.


Net profit fell 26 per cent from a year earlier to 61.3bn (355m), Nomura said in a statement yesterday. That still beat the 41bn expected by analysts, thanks to a strong showing in its fixed income and investment banking division.


Chief financial officer Shigesuke Kashiwagi said investors appeared to be seeking more concrete indications of economic recovery and assurances that the economy can withstand the impact of a sales tax hike on 1 April.


However, pre-tax profit at its retail division fell 59 per cent. The drop was also brought about by a big fall in sales of stock investment trusts as Nomura cut back on marketing new funds.


Even with the quarterly decline, profit for the fiscal year to 31 March doubled to 213.6bn, the highest since 2006.


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Source: City A.M. (UK)


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