Oct 28, 2026 earnings call — Quarterly results and recurring revenue growth
Profits rose across divisions, with total four division income before income taxes up 50%.
Revenue $3.8B (est $4.1B) · EPS $0.22 (est $0.20)
Key quotes
"Recurring revenue assets in wealth management rose 20% compared with the end of September last year to around JPY 31 trillion, while assets under management in investment management rose by JPY 50 trillion to around JPY 150 trillion, particularly reflecting the impact of acquisition."
"Wholesale does business along with the market. So there could be some ups and down depending on the market, but towards 2030, under self-funding, we need to invest and gain scale merit, and ROE hurdle rate must be surpassed."
"Based on these results, the interim dividend, with a record date of September 30th, will be JPY 35 per share, representing a payout ratio of 41%."
Analyst Q&A 8
October revenue impact and buybacks
Q (Masao Muraki · SMBC Nikko): Did October events (CoreWeave, French bonds, hedge fund deleveraging) affect revenues and which positions are being watched? Also, what is the outlook for overseas asset management M&A and how much cash might be available for share buybacks?
A: Management said credit-side risks need attention but they have not been hit and have not seen that phenomenon. They control data center risk factor-by-factor. For overseas asset management they will study bolt-on deals but do not expect large deals; wealth management will focus on organic growth. On buybacks they will consider financial soundness and growth and remain committed to "40% or higher payout ratio, 50% or higher total payout ratio."
"Are we hit in our positions? No. We have not seen such phenomenon." — Hiroyuki Moriuchi (CFO)
International wealth management growth
Q (Natsumu Tsujino · BofA): How is the overseas high-net-worth (IWM) business doing in Asia? Are client counts rising and how should we view the future? Also, any comment on October sales and trends?
A: Management said IWM performance has been strong and AUM is "about 44 billion." Since 2020 they opened "more than 3,000 client accounts" mainly in Hong Kong, Singapore and Dubai, and they increased headcount to prepare to accelerate growth. On October they said revenue was about the same as Q2; bond sales rose "66%" as clients reacted to higher JPY rates and some fund rotation occurred.
"Since 2020, more than 3,000 client accounts have been opened, mainly in Hong Kong and Singapore, but also in Dubai." — Hiroyuki Moriuchi (CFO)
Individual JGBs and wholesale cost ratio
Q (Speaker 4 · Daiwa): How important are individual JGBs as an alternative to deposits and what share can Nomura capture? Also, why was Wholesale expense ratio 85% and how will you reach 80%?
A: On JGBs they said demand is rising and the product can serve as an entry to other investments, but they did not have a capture percentage and will follow up offline. On the 85% Wholesale expense ratio they cited SRC cost measures, system simplification, AI to improve efficiency, and the need for revenue-driven operating deleverage and selective business focus to reduce the ratio over the mid to long term.
"I apologize, I do not have the number at hand, and I am not sure whether we can respond to that question." — Hiroyuki Moriuchi (CFO)
Wholesale cost outlook and bond pipeline
Q (Koki Sato · JPMorgan): What is the outlook for Wholesale cost-income ratio in H2 given investments you are making? Also, what is the outlook for public and corporate bond revenue and the DCM pipeline?
A: They said Q2 costs rose in part from FX and weak JPY offsets and some upfront headcount investment, but they expect monetization and operating deleverage to push the cost ratio down. On corporate bonds they said the DCM pipeline is robust, companies' financing demand is strong, and a broad set of products could benefit if flows shift from government bonds to corporate bonds.
"As we proceed with monetization, our cost ratio is expected to come down." — Hiroyuki Moriuchi (CFO)
Call connection check
Q (Wataru Otsuka · SBI): Is my voice getting through?
A: There was no management answer in this turn. The operator confirmed the call and asked the analyst to go ahead.
Wealth Management inflows and product mix
Q (Wataru Otsuka · SBI): Which channels and products drove the large retail inflows and the recurring revenue asset net inflow this quarter? Did specific deals like SoftBank bonds drive the inflow?
A: Management said inflows of cash and securities have grown and that higher rates made public and corporate bonds more attractive; several bond transactions were a significant portion. They refused to comment on specific individual transactions. For the recurring net inflow they said the inflow was diverse: investment trusts, discretionary net inflow, insurance, level-fee products and loans, not concentrated in one area.
"Regarding individual transactions, I cannot make any specific comments." — Hiroyuki Moriuchi (CFO)
IM seed investments and SPPC exposure
Q (Koichi Niwa · UBS): What is the size and purpose of IM Division seed investments and why were there valuation losses? Also, how big is Nomura's hyperscaler/data center finance business now and what is the outlook?
A: They would not disclose specific seed investment numbers and said seed investment supports R&D to originate future products and to normalize under-investment at NAM International. Seed capital is used to support active ETF transition and to suppress P&L volatility. On hyperscaler/data center finance they said SPPC securitization/private credit includes lending but is only "a few percentage points" of activity and they will be selective with strong risk controls.
How Nomura competes in hyperscaler finance
Q (Koichi Niwa · UBS): Compared with peers, what is Nomura's realistic approach and competitive edge in hyperscaler/data center finance?
A: They said Nomura is not a commercial bank and does not use a huge balance sheet, so they skip mega deals and target medium-sized deals. They stressed that deal structuring, solution capability, removing exposure, speed and investment-bank skill sets are where they compete and form their competitive edge.
"That is where we have been competing, and I understand that is been the source of our competitive edge." — Hiroyuki Moriuchi (CFO)