Nomura Holdings Second-Quarter Net Profit Rises 13 Percent

Nomura Holdings reported a 13 percent increase in second-quarter net profit, reaching 103.7 billion yen ($656.7 million). The growth was primarily fueled by a 30 percent rise in recurring revenue from the wealth management division as Japanese households shifted funds from cash and deposits into higher-yielding investments.

The company's wholesale division saw income grow 47 percent year-on-year. This performance was supported by strong equity trading and investment banking activities, including a take-private move of Dentsu Research Institute and a record 1 trillion yen retail bond issuance by SoftBank Group. While equity trading revenue rose 19 percent, fixed-income trading revenue declined by 2 percent due to spiking bond yields.

Chief Financial Officer Hiroyuki Moriuchi described the results as a "normalization" following an extremely strong first quarter that had been driven by AI-related market highs.