Nomura: 1H ROE reached 13.3% as all four segments lifted pretax earnings

What happened

Nomura's first-half pretax income rose 21% year over year to ¥359.5bn, and return on equity reached 13.3%. All four segments lifted pretax earnings. Second-quarter results stayed profitable as Wholesale and Investment Management normalized from earlier levels, while Wealth Management recurring revenue set a record.

Confirmed

Global impact / market context

Return on equity shows profit generated from shareholder money, so 13.3% signals Nomura is earning more on its capital base. A 21% jump in pretax income, spread across all four segments, suggests the improvement is broad rather than dependent on one business line.

Analyst inference

The summary notes sequential normalization in Wholesale and Investment Management, meaning those units cooled from prior-quarter peaks but stayed profitable. Record recurring revenue in Wealth Management, which means repeat fees rather than one-off trading gains, supports steadier earnings and could shape how investors value the stock.

Analyst inference

What to watch

1. Second-quarter profitability held despite sequential normalization in Wholesale and Investment Management, so watch whether these units keep earning profits as activity levels settle lower. Confirmed
2. Wealth Management's record recurring revenue, which means repeat fee income, may support steadier revenue; watch whether that base keeps growing if trading-related gains decline. Analyst inference
3. Track whether all four segments keep lifting pretax earnings in coming quarters, since broad-based gains underpin the 13.3% return on equity and the 21% income increase. Proposed

Evidence

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