Nomura Holdings Inc.’s shares dropped the most since November 2021 after the Japanese brokerage reported a slump in fourth quarter profit.
(Bloomberg) — Nomura Holdings Inc.’s shares dropped the most since November 2021 after the Japanese brokerage reported a slump in fourth quarter profit.
Shares fell as much as 7.9% in Tokyo on Thursday, the biggest intraday drop in about 18 months. A day earlier, Nomura said fourth-quarter profit slid 76% to 7.4 billion yen ($55.4 million), missing analysts’ estimates.
Earnings per share and return on equity “were well below our expectations,” Hideyasu Ban, an analyst at Jefferies wrote in a note.
Read more: Nomura Profit Falls for Third Straight Year Under CEO Okuda (1)
Muted client sentiment and lackluster dealmaking weighed on revenue at the Japanese brokerage while its overseas operations have now lost money in 10 out of the past 12 years, according to filings. Meanwhile, it emerged the firm’s Frankfurt offices are being searched as part of a probe into the Cum-Ex tax dividend scandal.
Nomura is grappling with challenges that include historic market moves triggered by troubles at Silicon Valley Bank and Credit Suisse Group AG. While the turmoil is helping to fuel trading activity at some firms, it hit investor sentiment just as Wall Street was already in retrenchment mode with interest rates rising and the economic outlook becoming uncertain.
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