TOKYO (Reuters) - Nomura Holdings Inc (8604.T: Quote, Profile, Research), Japan’s
largest brokerage, said its profit fell 71 percent in the
October-December quarter compared with a year earlier, hit by
slumping share prices and turmoil in global credit markets.
Nomura and second-ranked Daiwa Securities Group (8601.T: Quote, Profile, Research)
are headed for double-digit profit declines for the full year
to March 31 as Japan’s tumbling stock market cuts into broking
commissions and discourages mergers and acquisitions and share
offerings.
Nomura posted its first quarterly loss in 4 years in the
July-September quarter due to losses on investments in the U.S.
subprime loan market and the cost of cutting jobs in quitting
the U.S. residential mortgage-backed securities market.
The restructuring underscored Nomura’s struggle to
translate its dominant position in Japan into success overseas.
Group net profit at Nomura came to 22.65 billion yen ($213
million) in the October-December third quarter, down from 79.1
billion yen a year earlier but an improvement on the 10.5
billion yen loss in the second quarter.
The result compares with Deutsche Securities’ forecast for
a 34.7 billion yen profit.
