Nomura raises annual profit target 50% after record year

[TOKYO] Nomura Holdings raised its profit targets following a year of record earnings, as chief executive officer Kentaro Okuda pushes for stable growth. 

Japan’s biggest brokerage seeks to post at least 750 billion yen (S$6.01 billion) in annual pretax income by the year ending March 2031, 50 per cent higher than its previous goal of more than 500 billion yen, it said in a presentation to investors on Thursday (May 28).

It also plans to deliver a yearly return on equity – a key profitability measure – of at least 10 per cent to 12 per cent, up from its earlier target of 8 per cent to 10 per cent or more.

“Earning power has improved steadily” since the firm released its 2030 vision two years ago, Okuda said in the presentation. “We continue working toward sustainable growth and further improvement in our ability to generate profits.”

Nomura posted a second straight year of record net income in the 12 months ended March, as Japan’s financial-market recovery boosted trading and investment banking. Still, the firm’s stock price has fallen almost 4 per cent this year, compared with gains at domestic rival Daiwa Securities Group and Japan’s three biggest banks. BLOOMBERG