lehman-effect-boosts-and-reduces-nomuras-q1-profit

Lehman effect boosts and reduces Nomura's Q1 profit

Ex-Lehman bankers boost global trading, but personnel expenses drag down investment banking as Nomura finally returns to the black.

Nomura Holdings climbed back into the black in the first quarter of its 2009 financial year after five quarters in the red. Three of its five divisions retail, global markets and asset management posted profits, while merchant banking and investment banking reported losses.

Overall, net revenue jumped 121% year-on-year to 298.4 billion $3.1 billion in the April to June quarter, with pre-tax income coming in at 31.4 billion. Net income was 11.4 billion. But return-on-equity was only 3%, a far cry from the management's stated target of 10%-15%.

For the previous fiscal year, which ended March 31, 2009, the bank posted a record loss of 700 billion. The loss was due to almost...

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