Nomura’s third-quarter profit falls 39% as brokerage boom slows

FILE PHOTO: The Nomura logo is seen in Tokyo, Japan, December 1, 2015. REUTERS/Toru Hanai

TOKYO, Feb 1 (Reuters) – Nomura Holdings Inc, Japan’s largest investment bank and brokerage, reported a 38.7% drop in quarterly net profit on Tuesday, as the boom in the financial brokerage business caused by the pandemic.

Profit for October-December was 60.3 billion yen ($524.70 million), down from 98.4 billion yen a year earlier.

The dismal third-quarter results reflect a slowdown in the trading business in global markets, which benefited a year ago from high activity fueled by a massive injection of cash into capital markets by the Federal Reserve.

However, Nomura’s investment banking arm continued to thrive, partly offsetting falling brokerage revenues, thanks to waves of global mergers and acquisitions (M&A).

(Reporting by Makiko Yamazaki; editing by Shri Navaratnam and Lincoln Feast; translated by Tomás Cobos)

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