Nomura revenue tops forecasts while acquisition costs weigh on profit

Nomura Holdings (NYSE:NMR) reported fiscal third-quarter revenue that beat analyst estimates, as Japan’s largest brokerage capitalized on robust dealmaking and a domestic investing boom.

Despite the top-line strength, net income saw a slight decline from a year earlier, pressured by costs associated with its recent $1.8 billion acquisition of investment management assets from Macquarie Group.

The Tokyo-based firm reported net income of $594.4 million for the quarter ending Dec. 31.

Revenue for the period reached $7.97 billion, with revenue net of interest expense also coming in at $7.97 billion, surpassing Wall Street projections.

Earnings per share were 18 cents.

The results reflect a bifurcated quarter for the investment bank.

While its wholesale division benefited from rising global equity prices and a surge in M&A advisory fees, fixed-income revenue faced headwinds from volatile bond markets.

To bolster investor sentiment following the profit dip, Nomura announced a plan to buy back up to 60 billion yen ($390 million) of its own shares.