Nomura sees quarterly profit tumble 96%

Nomura sees quarterly profit tumble 96%

Tokyo: Japan’s top securities firm Nomura said Friday its group net profit tumbled 96% in the July-September period on a slump in commission revenue from investment banking and shrinking trading profits.

Japan’s largest securities brokerage by revenue reported a net profit of ¥1.1 billion ($13 million) in the fiscal second quarter, almost half the level from the same period a year earlier.

The brokerage has ramped up its expansion overseas after its purchase of part of Lehman Brothers following the US bank’s collapse in 2008, but it has been hampered by tough market conditions.

“Global investment banking fee pools continued to decline from last year," it said in a statement.

“The retail environment in Japan was particularly tough during the second quarter due to subdued client activity as a result of unsettled market conditions," Nomura said.

Net profit for the first half of the fiscal year tumbled 91.4% on-year to ¥3.4 billion, Nomura said.

Nomura shares closed 1.38% lower in Tokyo trade Friday ahead of the earnings release.