Nomura Holdings Reports 50% Jump in First-Half Profit

Nomura Holdings reported a significant surge in profitability for the first half of its fiscal year 2026, with tax profit increasing by 50% year-on-year to ¥359.5 billion. The strong results, announced October 28th, are driven by gains across most of its divisions and a strategic shift toward a more stable, “stock-type” business model.

The firm’s wealth management division led the gains, achieving a record ¥7,500 billion in net asset inflows. This division also saw its stock revenue cover ratio rise to 79%, demonstrating improved performance stability. Investment management continued to attract funds, maintaining high levels of assets under management, while the wholesale division benefited from strong equity performance and increased investment banking revenue. The banking division also contributed to the positive results, boosted by expanding loan balances and rising interest rates.

Alongside the improved financial performance, Nomura announced an increased interim dividend of ¥35 per share, up from ¥27 in the previous year. This reflects management’s confidence in the company’s trajectory and commitment to returning capital to shareholders. The company’s return on equity (ROE) for the first half reached 13.3%, a substantial improvement indicating effective capital utilization.

The reported results build upon ongoing efforts to transform the business model, as evidenced by consistently reported revenue verification processes dating back to at least 2016, focused on analyzing revenue sources including interest rates, credit spreads and volatility. The broader operating environment, as indicated by recent market signals, presents both opportunities and challenges for Nomura, with increased demand for specialized legal expertise pointing to potential future litigation and compliance costs. The firm's ability to navigate these challenges while capitalizing on growth opportunities will be crucial for sustaining its positive momentum.