NOMURA HOLDINGS INC Q2 FY2025 earnings call

• Group-wide net revenue increased 6% quarter-on-quarter to JPY483.3 billion. Income before income taxes grew 29% to JPY133 billion, and net income was JPY98.4 billion, a 43% increase over the last quarter. • Wealth management had net revenue up 2% and income before income taxes up 7%, with recurring revenue reaching a record high of JPY50.3 billion despite market volatility. • Investment management saw net revenue up 18% and income before income taxes up 38%, with business revenue at a record high. • Wholesale had net revenue up 8%, with income before income taxes up 114%, and cost-to-income ratio improved to 83% due to revenue diversification and cost control. • Announced a JPY23 dividend per share for shareholders of record as of the end of September, with a dividend payout ratio of 40.6%.

Wealth management: Net revenue increased 2% to JPY116.7 billion, income before income taxes grew 7% to JPY45.3 billion. Recurring revenue was up 10% to a record high of JPY50.3 billion. Investment management: Net revenue was up 18% at JPY56.1 billion, while income before income taxes grew 38% to JPY31.9 billion. Wholesale: Net revenue increased 8% to JPY263.4 billion. Income before income taxes significantly increased by 114% to JPY45.3 billion, and the cost-to-income ratio improved to 83%.

• Continue to focus on revenue diversification in wholesale and stable revenue generation in wealth management and investment management. • Maintain cost control efforts across segments. • Monitor market conditions and continue to take appropriate risks to boost the bottom line.

• Economic and market conditions, political events, and investor sentiment can impact results. • Volatility in interest rates, currency exchange rates, security valuations, and competitive conditions pose risks. • Market volatility and competition in specific business areas like ECM and fixed income can affect performance.

Q: Regarding ECM sustainability and capital policy, Takumi Kitamura responded that there are many potential deals in the pipeline in Japan, and in Asia, revenue sources are diversifying. On capital policy, they are evaluating Basel 3 impact and considering share buyback options but decided against it for now.

A: Takumi Kitamura stated there are multiple potential ECM deals in Japan, and in Asia, revenue sources are diversifying. On capital policy, Basel 3 impact is being evaluated, and share buyback is still under consideration but not implemented this time.

Q: About fixed income outperformance and wealth management monthly revenue, Takumi Kitamura said fixed income outperformance was due to revenue diversification, monetizing volatility in certain businesses, and recovery in rates products. For wealth management, July was strongest, August and September were lower due to market factors, and they spent time explaining to clients in August.

A: Fixed income outperformance was from revenue diversification and monetizing market volatility. Wealth management had July as strongest, August and September lower due to market, with explanations to clients in August.