Nomura returns second quarter profit on fixed income gains
October 29, 2012 5:28 PM EST
Nomura Holdings <8604.T>, Japan's largest investment bank, posted its fourth straight quarterly profit on Monday as an upswing in its fixed income operations helped it counter weak equity markets and the fallout from an insider trading probe.
Nomura, whose top competitor in Japan is Daiwa Securities Group <8601.T>, reported a net profit of 2.81 billion yen (21.9 million pounds) for the July-September second quarter, against a loss of 46.09 billion yen in the same period last year. The consensus of eight analysts was for a profit of 5.7 billion yen.
Nomura's results were supported by an upswing in bond trading and other fixed income products, a major factor boosting quarterly earnings at U.S. banks including Morgan Stanley
That helped offset the drag from Japan's sluggish stock market. The benchmark Nikkei average <.N225> fell 1.5 percent during July-September, while turnover on the first section of the Tokyo Stock Exchange slumped 12 percent from April-June.
Nomura also lost underwriting business due to an insider trading scandal that triggered a shake-up of top management. In the most high-profile case, it was relegated to a more junior role on the $8.5 billion (5.2 billion pounds) initial public offering of Japan Airlines <9201.T>, the world's second-largest IPO of 2012.
Following a review under newly appointed Chief Executive Koji Nagai, the company announced plans in late August to chop an additional $1 billion in costs in the second major restructuring since it embarked on an overseas expansion through the acquisition of parts of Lehman Brothers in 2008.
(Reporting by Nathan Layne; Editing by Neil Fullick)
Most Popular Slideshows
- NFL MNF: Washington Redskins 20, Dallas Cowboys 17 (OT) [PHOTOS]
- Emma Watson Gets 'Squished' In 'Colonia Dignidad' [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
- San Francisco Giants Beat Kansas City Royals, 3-2 In Game 7, Wins 2014 MLB World Series [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Marvel Announces Release Dates Of 11 Upcoming Movies From 2015 To 2019
- Nokia Lumia 730 v. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Xiaomi Becomes World’s Third Largest Smartphone Manufacturer By Dethroning Huawei
- Apple iPhone 6 Plus vs Motorola Droid Turbo: Comparsion On Processor, Software And Battery
- Nexus 6, 9 Buyers on November Release Will Enjoy These 3 Killer Lollipop 5.0 Features First
- Australia Special Forces Await 'Delayed' Iraqi Visas Before Joining ISIS Fight
- ISIS Has Been Equipped With Advanced Anti-Aircraft Missiles