Japan’s Nomura Q4 profit plunges 76% as deal activity slumps By Reuters

© Reuters. FILE PHOTO: The brand of Nomura Securities is seen on the firm’s Head Workplace in Tokyo, Japan, November 28, 2016. REUTERS/Toru Hanai/File Picture

TOKYO (Reuters) -Nomura Holdings Inc, Japan’s greatest brokerage and funding financial institution, reported on Wednesday a 76% tumble in quarterly web revenue as worries a couple of world banking disaster hit its funding banking and asset administration companies.

January-March revenue got here in at 7.4 billion yen ($55.37 million), down from 30.96 billion yen a yr earlier.

Nomura’s wholesale division, which homes its funding banking and buying and selling companies, reported a pre-tax lack of 14.2 billion yen in contrast with a 37.0 billion yen revenue a yr earlier. It’s the second consecutive quarterly loss.

Funding banking noticed a stoop in dealmaking charges, whereas inflation in the USA and a weaker yen pushed up prices on the division.

International mergers and acquisitions exercise shrank to the bottom degree in additional than a decade within the final quarter as a banking disaster that began with the collapse of Silicon Valley Financial institution unfold to Europe with the sale of Credit score Suisse Group AG to UBS Group AG (SIX:).

Web revenue for the yr ended March got here in at 92.8 billion yen, in contrast with a mean estimate of 136.26 billion yen from seven analysts polled by Refinitiv.

($1 = 133.6400 yen)

(Created by Murali Anantharaman)