Global Market: Nomura Holdings Q2 profit rises 13% on wealth management growth

Net profit rose to 103.7 billion yen ($656.7 million), reflecting continued momentum across the financial services group's key businesses.

Nomura's wholesale division recorded a 47% year-on-year increase in income, driven by robust equity trading and investment banking activity. The performance underscored the strength of its capital markets business amid favourable financial market conditions.

The investment bank also secured the top position in Japan's equity capital markets and debt capital markets league tables for the six months ended September. Revenues were supported by transactions including the take-private deal involving Dentsu Research Institute and SoftBank Group's record 1 trillion yen retail bond issuance.

According to Reuters, favourable market conditions have helped boost Nomura's profitability over the past year. However, its wealth management division has continued to expand, benefiting from a structural shift in Japanese household savings towards higher-yielding investments.

Japanese households have traditionally maintained a substantial portion of their savings in cash and bank deposits. However, the gradual movement towards investment products has created opportunities for financial institutions such as Nomura to expand their wealth management businesses.

The company has been working for several years to build more stable revenue streams that are less vulnerable to market volatility. The continued growth of its wealth management operations reflects this strategy, providing a potential source of earnings stability alongside its more market-sensitive wholesale business.