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April-June profit came in at 1.696 billion yen ($12.73 million) versus 48.5 billion yen a year earlier. The result compared with a 22.59 billion yen average of two analyst estimates compiled by Refinitiv.
Investment banking revenue fell 33% as aggressive U.S. Federal Reserve interest rate rises and geopolitical tension rattled global financial markets and turned businesses cautious about stock and debt offerings.
Companies’ reduced appetite for deals hit merger-and-acquisition advisory revenue, which had been a growth driver for investment banking since Nomura bought Greentech, an M&A adviser in clean technology, in 2020.
One bright spot was fixed-income trading, which benefited from higher volume as market volatility led investors to rebalance their portfolios.
As fears of slowing global economic growth sent financial markets into a tailspin, Nomura’s retail and asset management businesses also sagged.
Its investment management business logged a 11.7 billion yen loss, while profit for its retail business dropped 74% from the third-quarter.
Nomura is aiming to change its earnings structure to be less vulnerable to market swings, by increasing fees for managing clients’ assets rather than relying on stock brokerage commissions.
($1 = 133.1900 yen)
