Profits at Japanese investment bank Nomura took a hit in the third quarter, with net income falling 39% due to a slowdown in the global markets trading business.
The third-quarter earnings figures contrasted with the previous year, which had benefited from high trading activity thanks to a massive injection of cash into capital markets by the US Federal Reserve.
The bank, which posted a net income of ¥60.3 billion ($525 million) in the three months to December 31, said its retail and wholesale units showed weaker results because of lower commissions and a slowdown in foreign exchange trading.
However, Nomura’s mergers and acquisitions business made up for some of the disappointment, posting its strongest quarterly revenues since 2017.
“Our efforts to diversify revenues and deliver consistent growth are starting to pay off,” group chief executive Kentaro Okuda said in a statement.
He said the company would remain committed to “enhancing risk management” and “delivering sustainable growth”.
Nomura shares rose more than 5% on Wednesday. However, the stock has lost nearly 30% since the bank revealed it had lost more than $2 billion associated with the collapsed Archegos fund.
- George Russell
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