Nomura Reports Record Full-Year Net Income Amidst Q4 Profit Decline and Key Capital Ratio Drop
Summary
Nomura Holdings reported record full-year net income and met its ROE target, but detailed Q4 results showed a sequential decline in profitability and a notable decrease in its CET1 capital ratio.
Key Events
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Record Full-Year Performance
Net income reached Y362.1 billion, marking a record high for the second consecutive year, with a full-year ROE of 10.1%.
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Mixed Fourth Quarter Results
Net income declined 19% QoQ to Y73.9 billion, and income before income taxes fell 20% QoQ to Y107.7 billion.
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Key Capital Ratio Decline
The CET1 capital ratio decreased from 14.5% in March 2025 to 12.9% in March 2026, a notable shift for a financial institution.
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Segment Performance Highlights
Wealth Management and Wholesale divisions achieved record-high income before income taxes, while Investment Management recognized an impairment loss.
Analysis
This 6-K provides the detailed consolidated financial results for the fourth quarter and full fiscal year ended March 2026. While the company reported record full-year net income and met its ROE target, the fourth quarter showed a sequential decline in profitability, including an impairment loss in Investment Management. A significant point of concern for a financial institution is the notable decrease in the CET1 capital ratio from 14.5% to 12.9% year-over-year, which could signal reduced financial flexibility. This detailed report offers crucial insights beyond the preliminary announcements, allowing investors to assess both the strong annual performance and the emerging quarterly challenges and balance sheet shifts.
At the time of this filing, NMR was trading at $7.83 on NYSE in the Finance sector, with a market capitalization of approximately $22.8B. The 52-week trading range was $5.45 to $9.58. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.