Nomura's second-quarter profit rises 13%

What happened

Nomura Holdings reported a 13% rise in second-quarter net profit to 103.7 billion yen, or $656.7 million, helped by wealth management growth and a 47% year-on-year income increase in its wholesale division, lifted by equity trading and investment banking.

Confirmed

Global impact / market context

Stronger profit shows Nomura earns more from fees and trading, which can support its share price and ability to invest. Wealth management growth matters because recurring fee income is steadier than trading gains tied to market swings.

Analyst inference

Japanese households shifting from cash and deposits toward higher-yielding investments is expanding demand for brokerage services. Nomura also benefited from equity and debt underwriting work in Japan, including large deals, suggesting corporate fundraising activity supported investment banking revenue.

Analyst inference

What to watch

1. Nomura's wholesale division income grew 47% year on year, driven by equity trading and investment banking, so watch whether this pace holds if trading conditions become less favourable. Confirmed
2. Watch whether Nomura can keep growing wealth management revenue as Japanese households move money out of cash and deposits, since recurring fees could reduce reliance on volatile trading income. Proposed
3. Monitor whether large Japanese corporate deals continue, such as the Dentsu Research Institute take-private and SoftBank's 1 trillion yen retail bond, because fewer deals could reduce investment banking revenue. Analyst inference

Evidence

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