|Bid||3.7300 x 3200|
|Ask||3.8400 x 3200|
|Day's range||3.8000 - 3.8600|
|52-week range||3.0500 - 5.4100|
|Beta (5Y monthly)||1.13|
|PE ratio (TTM)||13.88|
|Forward dividend & yield||0.27 (7.06%)|
|Ex-dividend date||27 Sep 2019|
|1y target est||5.12|
Nomura's (NMR) business strategy involves investments in private businesses and digitization in order to improve the company's prospects.
Nomura Holdings Inc said on Tuesday it planned to beef up business with unlisted companies, including offering advice to startups, aiming to diversify revenue after quarterly earnings took a battering from the coronavirus pandemic. Japanese biggest brokerage and investment bank said in a business strategy update it was seeking new growth in private equity, private debt and infrastructure, as well as in offerings of digital bonds and security tokens.
(Bloomberg) -- Nomura Holdings Inc.’s new chief executive officer is set to unveil his strategy for Japan’s biggest brokerage on Tuesday, as the firm comes under renewed market scrutiny after posting losses caused by the coronavirus pandemic.Kentaro Okuda may redouble his predecessor’s efforts to reduce the firm’s reliance on trading and shift it toward more stable earnings drivers such as advice to companies and wealthy Japanese individuals. The impetus for doing so was made clear during last quarter’s market turmoil, when writedowns on loans and investments led to Nomura’s first loss in five quarters.“The market was particularly volatile in March because of the coronavirus problems, so the losses were probably inevitable,” said Kaori Nishizawa, an analyst at Fitch Ratings in Tokyo. Nevertheless, “Nomura is still quite susceptible to market volatility -- its profit isn’t stable.”Read how Okuda faces a tough initiation at Nomura’s helmOkuda’s strategy is likely to include working more with privately held companies and stepping up advice in areas such as ESG initiatives, according to introductory remarks he made last month. Nomura is hoping the new focus will unlock more deals with unlisted Japanese firms, the Financial Times reported earlier this week. The new CEO may also address how to revive the struggling domestic retail franchise at a time when Japan’s recession is deepening.Below is a series of charts illustrating Okuda’s challenge, as he prepares to give a presentation to investors in Tokyo on Tuesday.Okuda, 56, may face pressure to address Nomura’s appetite for risk after it booked large impairment losses last quarter, including on leveraged loans that it was forced to mark to market. An increase in risk-weighted assets caused Nomura’s capital buffers to drop.“Reducing loan positions can be one option if they want to make themselves more tolerant of market volatility and stabilize profit,” said Toshihiro Matsuo, an analyst at S&P Global Ratings. “But those loans are being extended as part of wholesale business, such as bridge financing for clients seeking mergers, so if they choose that option that could cause their wholesale business to shrink.”Nomura lost money abroad last quarter for the first time in a year, dashing hopes that the firm’s overseas woes have ended. While analysts have lauded a cost-cutting program introduced by then-CEO Koji Nagai last year, Okuda may have to expand on that, according to Bloomberg Intelligence.Read Nisha Gopalan’s column on Nomura’s uncomfortable home truths“We believe further cost reduction is needed to stabilize and boost its earnings, while weak and volatile markets in Europe may hinder Nomura’s profit recovery,” Shin Tamura, a senior analyst at Bloomberg Intelligence, wrote recently.Nomura has troubles at home, too. The coronavirus has tested the company’s dependence on face-to-face services after it was forced to suspend operations at branches during a state of emergency to quell the outbreak.The firm’s retail client base is aging and it faces intensifying competition for a new generation of customers who are flocking to cheaper online rivals that don’t run costly outlets. Nomura has already been cutting branches as part of its one-year-old restructuring program.“The fundamental question is whether it’s fine to leave the retail business model unchanged in the face of Japan’s structural changes posed by the aging and shrinking population,” Nishizawa said. “Where will they make money?”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Good day everyone and welcome to today's Nomura Holdings Fourth Quarter and Full-Year Operating Results for Fiscal Year Ended March 2020 Conference Call. This slide outlines some of the initiatives we have undertaken to help our employees, clients and communities.
(Bloomberg) -- Nomura Holdings Inc. probably joined its Wall Street rivals in benefiting from a jump in trading during last quarter’s wild market swings, masking the challenge for its new chief as the coronavirus pandemic hammers the economy.Japan’s biggest brokerage is likely to post a fourth straight quarter of profit growth on Friday, helping full-year earnings climb to the highest in more than a decade, analysts at Jefferies and Mitsubishi UFJ Morgan Stanley Securities Co. predict. The trading boost is expected to make up for weakness in underwriting business as Japanese companies grew cautious in anticipation of a deep recession.Chief Executive Officer Kentaro Okuda may not be able to rely on the boom being sustained, with U.S. banks including Morgan Stanley warning that transaction volumes are waning. Okuda, who took the job on April 1, has vowed to persist with an overhaul that centers on bolstering advisory business for companies and revamping the struggling domestic retail franchise.Read more on Okuda’s tough initiation as CEONomura’s path from here could be “one step forward and three steps back,” said Bloomberg Intelligence analyst Shin Tamura. While corporate clients will rely on the firm to issue bonds to raise cash needed to survive the economic downturn, there may be less demand for equity underwriting, merger advisory and trading services, he said.Japanese equity offerings have plunged 63% so far in 2020 from a year earlier, while corporate bond issuances have slipped 2.3%, according to data compiled by Bloomberg. Mergers have dropped 17%, the figures show.Net income likely came to 35 billion yen ($329 million) in the three months ended March 31, up from less than 1 billion yen a year earlier, said Hideyasu Ban, an analyst at Jefferies. Mitsubishi UFJ Morgan Stanley’s Natsumu Tsujino expects profit of 30.1 billion yen.Nomura’s solid results in recent quarters -- coming after a rare annual loss in the previous year -- have been largely due to its trading desks even as the company’s restructuring emphasized a shift away from relying on such secondary business and toward advisory services. Okuda, whose background is in investment banking, announced the plan in April last year when he was co-chief operating officer.Worries over the pandemic whipsawed global markets in March, creating the most extreme swings in more than a decade. Wall Street banks gained an average 30% in trading revenues in the quarter.Nomura may have benefited from higher trading activity on the retail front too, if results of local rivals are any guide. Mizuho Securities Co. is among firms that reported increases in stock-transaction commissions from individual clients.But social distancing efforts in Japan are exposing the business models of traditional brokerages including Nomura, which have closed branch service counters during a national state of emergency. SMBC Nikko Securities Inc. said the halting of face-to-face contact with retail customers is having a large impact on its sales of products such as mutual funds.Shares of Nomura fell 2.5% on Thursday afternoon in Tokyo, extending this year’s decline to 24%.“As far as the outlook is concerned, no one can tell what’s going to happen to things like stock trading volumes once the market calms,” Jefferies’ Ban said. “Will there be more trading? Or things will become quiet? It’s impossible to tell yet.”(Updates with shares in the second-to-last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The likes of Goldman Sachs, JP Morgan, Nomura, and Barclays have all been testing back-up offices in recent weeks as part of coronavirus prep work.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
LONDON/MILAN (Reuters) - Goldman Sachs, JPMorgan, Citigroup Inc, Credit Suisse and other banks have curbed trips to Italy amid fears that the coronavirus outbreak across the north of the country could quickly spread across Europe, sources said. Lazard, BNP Paribas and Deutsche Bank also rushed to warn staff against all "non-essential travel" to northern Italy, four sources told Reuters, speaking on condition of anonymity as banking policies are confidential.
LONDON/MILAN (Reuters) - Goldman Sachs , Citigroup Inc , Credit Suisse and other investment banks have curbed trips to Italy amid fears that the coronavirus outbreak across the north of the country could quickly spread across Europe, sources said. Lazard , BNP Paribas and Deutsche Bank also rushed to warn staff against all "non-essential travel" to northern Italy, four sources told Reuters, speaking on condition of anonymity as banking policies are confidential.
Nomura (NMR) seems to be a good value pick, as it has decent revenue metrics to back up its earnings, and is seeing solid earnings estimate revisions as well.
The third largest global economy after the United States and China is further pushed to the brink of a slump by the coronavirus outbreak in China.
Nomura Holdings Inc , Japan's biggest brokerage and investment bank, on Thursday posted its fourth straight quarterly profit, primarily due to a turnaround at its wholesale business serving businesses and institutional investors. Nomura, which is in the midst of a management reshuffle, had recorded a 95.3 billion yen net loss in the same period last year, its heaviest quarterly loss in nearly a decade, as it suffered a big write-off in its wholesale business. Pretax income for the wholesale segment came in at 43.2 billion yen for the three months through December compared with a 95.9 billion yen pretax loss a year ago.
In sync with Goldman Sachs' (GS) efforts to gain majority control in the joint venture and improve profitability, the bank announces plans to increase workforce in China.
Nomura Holdings cannot escape an ageing society or low interest rates, but the Japanese investment bank might be able to wring more money out of advisory and underwriting as it grapples with the long-term "megatrends", its outgoing chief executive said. The comments from Koji Nagai, Nomura's longest-serving CEO in three decades, underscore the deepening sense of crisis for Japan's top brokerage and investment bank amid a shrinking fee pool from trading that threatens financial services in the world's third-largest economy. Nagai is due to become Nomura's chairman in April and will be replaced by Kentaro Okuda, now co-chief operating officer, to lead a turnaround at the firm, which last year posted its first annual loss in a decade, has cut costs and also announced plans to shut 20% of its domestic retail branches.