(Bloomberg) -- Nomura Holdings Inc.’s rates traders bounced back from market volatility fueled by this month’s banking industry woes after the turmoil initially inflicted modest losses, according to the head of its wholesale business. Most Read from Bloomberg$52 Billion Chipmaking Plan Is Racing Toward FailureFBI Releases Files on Ivana TrumpNew Yorkers Are Moving to These Three Florida CitiesUBS Veteran Ermotti Returns to Lead Credit Suisse TakeoverBanks in France Face More Than $1.1 Billion Fi
Nomura Holdings Inc, Japan's biggest brokerage and investment bank, reported an 11% rise in quarterly net profit on Wednesday, as a partial stake sale in an affiliate offset a slump in investment banking. Nomura's wholesale division, which houses its investment banking and trading businesses, logged a pretax loss of 1.9 billion yen ($14.58 million), its first loss since the April-June quarter of 2021. But a 28-billion-yen gain from the partial sale of its stake in affiliate Nomura Research Institute and a recovery in the valuation of the U.S. asset management unit helped Nomura post a net profit of 66.9 billion yen ($513.51 million) for the October-December period.
Nomura Holdings Inc's U.S. wholesale business has emerged as a profit driver despite some large one-off losses in the region that had dragged down the bank's earnings in the past, Chief Executive Officer Kentaro Okuda said. "The basic earnings power and cost structure of our overseas wholesale business have improved, resulting in a stable trend of profits since 2017, and the United States has driven that," Okuda said, speaking at an annual event for investors. Nomura's wholesale division consists of the global markets and investment banking arms.