Nomura Holdings Inc posted a record loss in the quarter ending last month as the ongoing global financial turmoil and slumping stock markets sent Japan’s biggest brokerage deep into the red for the fourth straight quarter.
The company yesterday reported a net loss of ¥342.9 billion (US$3.8 billion) compared with a net profit of ¥21.8 billion in the same period a year earlier. The dire result follows a ¥72.9 billion loss in the June-to-September quarter and was even worse than weekend news reports speculating of a ¥300 billion loss.
Quarterly revenue plunged 99 percent to ¥2.7 billion on declining brokerage commissions and portfolio management fees.
Pretax losses for the quarter totaled ¥399.5 billion from a profit of ¥44.4 billion a year earlier, in large part owing to costs related to its purchase of Lehman Brothers’ operations in Asia, Europe and the Middle East.
“Last quarter was extraordinary for our industry and Nomura was no exception,” company president and chief executive Kenichi Watanabe said in a statement.
“However, our financial position remains strong and we are seeing results from the integration of our extensive client platform in Japan with the Lehman franchise internationally,” he said.
For the nine months ended last month, Nomura reported a net loss of ¥492.4 billion on revenue of ¥518.3 billion.
In trading yesterday, shares of Nomura rose 4.9 percent to ¥639 in line with broader market gains.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index rose 378.93 points to close at a one-week high of 8,061.07.
The broader TOPIX index of all-first section shares gained 37.21 points, or 4.8 percent, to finish at 805.49.