Nomura Holdings Inc., Japan’s largest brokerage, posted its first quarterly profit since 2007 as a stock market revival boosted trading and investment banking.
Nomura reported net income of 11.4 billion yen ($121 million) for the three months ended June 30, compared with a loss of 76.6 billion yen a year earlier, it said in a statement today. Trading profit rose to 121 billion yen from 10.5 billion yen a year ago, the Tokyo-based company said , Bloomberg reports.
Meanwhile, Japan's largest securities business group by revenue posted a net profit of 11.42 billion yen ($121 million) in the fiscal first quarter, compared with net loss of ¥76.59 billion in the same period a year earlier, when it was hit by losses on monoline exposure and private equity investments as a result of the global financial crisis.
The results were better than consensus estimates of a ¥25.5 billion loss compiled by Thomson Reuters from three analysts' expectations , Wall Street Journal reports.
However, the Japanese brokerage house said the strong performance in its global markets business reflected the successful integration of its acquisitions last year, including parts of Lehman Brothers' operations. The company didn't provide earnings forecasts, citing uncertainties in economic and market conditions. But President and Chief Executive Kenichi Watanabe said the firm was "making steady progress towards our objective of achieving full-year profit." Nomura shares fell 0.7% in Tokyo before the results, FOXBusiness reports.