Nomura to buy back shares as record annual profit still in sight

[TOKYO] Financial services company Nomura announced its plans to buy back shares even after profit fell in the third quarter, as Japan’s biggest brokerage remained on course for record annual earnings. 

Its net income slid 9.7 per cent from a year before to 91.6 billion yen (S$754.7 million) in the fiscal third quarter ended Dec 31, the company said on Friday (Jan 30). This missed the 95.1 billion yen average of four analyst estimates compiled by Bloomberg News.

A drop in fixed-income revenue and underwriting fees clouded its otherwise strong results, in areas including wealth management. It said that it plans to buy back as much as 60 billion yen of shares, or 3.2 per cent of its outstanding stock. 

Chief executive officer Kentaro Okuda is seeking to extend the momentum that led to a record profit last year, as financial companies compete to capitalise on Japan’s market swings and investing boom.

Brokerages are finding a role in helping clients navigate volatile bond and currency markets, at a time of mounting concerns over the direction of Japan’s fiscal policy. 

Net income totalled 288.2 billion yen for the nine months, putting Nomura on course to beat the previous fiscal year’s all-time-high of 340.7 billion yen. BLOOMBERG