6-K 1 d112294d6k.htm FORM 6-K Form 6-K
Table of Contents

 

 

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Commission File Number: 1-15270

For the month of February 2021

NOMURA HOLDINGS, INC.

(Translation of registrant’s name into English)

13-1, Nihonbashi 1-chome

Chuo-ku, Tokyo 103-8645

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F       X             Form 40-F               

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

 

 

 

 


Table of Contents

Information furnished on this form:

EXHIBIT

 

Exhibit Number
1.    Financial Summary – Nine months ended December 31, 2020.

 


Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    NOMURA HOLDINGS, INC.
Date: February 3, 2021     By:  

/s/ Yoshifumi Kishida

      Yoshifumi Kishida
      Senior Managing Director


Table of Contents

Financial Summary For the Nine Months Ended December 31, 2020 (U.S. GAAP)

 

Date:    February 3, 2021
Company name (code number):    Nomura Holdings, Inc. (8604)
Stock exchange listings:   

(In Japan) Tokyo, Nagoya

(Overseas) New York, Singapore

Representative:   

Kentaro Okuda

President and Group CEO, Nomura Holdings, Inc.

For inquiries:   

Junko Tago

Executive Director, Head of Investor Relations, Nomura Holdings, Inc.

Tel: (Country Code 81) 3-5255-1000

URL: https://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results

 

     (Rounded to nearest million)  
     (Millions of yen, except per share data)  
     For the nine months ended December 31  
     2019     2020  
     % Change from
December 31, 2018
    % Change from
December 31, 2019
 

Total revenue

     1,582,733       18.4     1,389,263       (12.2 %) 

Net revenue

     1,050,359       28.8     1,231,837       17.3

Income before income taxes

     272,979       —       396,771       45.3

Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders

     251,473       —       308,524       22.7

Comprehensive income

     227,238       —       206,893       (9.0 %) 

Basic-Net income attributable to NHI shareholders per share (Yen)

     77.36         101.03    

Diluted-Net income attributable to NHI shareholders per share (Yen)

     75.65         98.30    

Return on shareholders’ equity-annualized

     12.6       15.1  

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI shareholders to Total NHI shareholders’ equity.

(2) Financial Position

 

     (Millions of yen, except per share data)  
     At March 31     At December 31  
     2020     2020  

Total assets

     43,999,815       44,592,245  

Total equity

     2,731,264       2,853,392  

Total NHI shareholders’ equity

     2,653,467       2,793,623  

Total NHI shareholders’ equity as a percentage of total assets

     6.0     6.3

Total NHI shareholders’ equity per share (Yen)

     873.26       913.16  


Table of Contents

2. Cash Dividends

 

                                                                       
     (Yen amounts)  
     For the year ended March 31  
     2020      2021      2021 (Plan)  

Dividends per share

        

Dividends record dates

        

At June 30

     —          —          —    

At September 30

     15.00        20.00        —    

At December 31

     —          —          —    

At March 31

     5.00        —          Unconfirmed  

For the year

     20.00        —          Unconfirmed  

Note: Fiscal year 2021 Q4 dividend forecast is not presented per reasons stated in “3. Earnings Forecasts for the year ending March 31, 2021.”

3. Earnings Forecasts for the year ending March 31, 2021

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings forecasts.

Notes

(1) Changes in significant subsidiaries during the period: None

      (Changes in Specified Subsidiaries accompanying changes in scope of consolidation)

(2) Adoption of the simplified and particular accounting treatments: None

(3) Changes in accounting policies

 

  a)

Changes in accounting policies due to amendments to the accounting standards: Yes

  b)

Changes in accounting policies due to other than a): None

(4) Number of shares issued (common stock)

 

     At March 31      At December 31  
     2020      2020  

Number of shares outstanding (including treasury stock)

     3,493,562,601        3,233,562,601  

Number of treasury stock

     454,975,108        174,269,424  
     For the nine months ended December 31  
   2019      2020  

Average number of shares outstanding (year-to-date)

     3,250,819,816        3,053,730,446  

*This financial summary is not subject to certified public accountant’s or audit firm’s quarterly review.


Table of Contents

Table of Contents for the Accompanying Materials

 

1.    Qualitative Information of the Quarterly Consolidated Results

     P. 2  

(1)    Consolidated Operating Results

     P. 2  

(2)    Consolidated Financial Position

     P. 4  

(3)    Consolidated Earnings Forecasts

     P. 4  

(4)    Risks related to the COVID-19 pandemic

     P. 4  

2.    Notes to the Summary Information

     P. 5  

(1)    Changes in Accounting Policies

     P. 5  

3.    Quarterly Consolidated Financial Statements

     P. 5  

(1)    Consolidated Balance Sheets

     P. 6  

(2)    Consolidated Statements of Income

     P. 8  

(3)    Consolidated Statements of Comprehensive Income

     P. 9  

(4)    Note with respect to the Assumption as a Going Concern

     P. 9  

(5)    Segment Information – Operating Segment

     P.10  

(6)    Significant Changes in Equity

     P.11  

4.    Supplementary Information

     P.12  

(1)    Consolidated Statements of Income – Quarterly Comparatives

     P.12  

(2)    Business Segment Information – Quarterly Comparatives

     P.13  

(3)    Other

     P.14  

 

– 1 –


Table of Contents
1.

Qualitative Information of the Quarterly Consolidated Results

 

(1)

Consolidated Operating Results

U.S. GAAP

 

     Billions of yen     % Change  
   For the nine months ended     (B-A)/(A)  
   December 31,
2019 (A)
    December 31,
2020 (B)
 

Net revenue

     1,050.4           1,231.8       17.3  

Non-interest expenses

     777.4       835.1       7.4  
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     273.0       396.8       45.3  

Income tax expense

     16.4       83.1       407.5  
  

 

 

   

 

 

   

 

 

 

Net income (loss)

     256.6       313.6       22.2  
  

 

 

   

 

 

   

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

     5.1       5.1       (0.1
  

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to NHI shareholders

     251.5       308.5       22.7   
  

 

 

   

 

 

   

 

 

 

Return on shareholders’ equity-annualized

     12.6     15.1     —    

 

Note: Return on shareholders’ equity is a ratio of Net income (loss) attributable to NHI shareholders to Total NHI shareholders’ equity.

Nomura Holdings, Inc. and its consolidated entities (collectively, “Nomura”) reported net revenue of 1,231.8 billion yen for the nine months ended December 31, 2020, an increase of 17.3% from the same period in the prior year. Non-interest expenses increased by 7.4% from the same period in the prior year to 835.1 billion yen. Income before income taxes was 396.8 billion yen and net income attributable to NHI shareholders was 308.5 billion yen for the nine months ended December 31, 2020.

Segment Information

 

     Billions of yen     % Change  
   For the nine months ended     (B-A)/(A)  
   December 31,
2019 (A)
    December 31,
2020 (B)
 

Net revenue

     1,055.1           1,224.9           16.1  

Non-interest expenses

     777.4       835.1       7.4  
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     277.8       389.9       40.4  
  

 

 

   

 

 

   

 

 

 

In the above segment information totals, which exclude a part of unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the nine months ended December 31, 2020 was 1,224.9 billion yen, an increase of 16.1% from the same period in the prior year. Non-interest expenses increased by 7.4% from the same period in the prior year to 835.1 billion yen. Income before income taxes was 389.9 billion yen for the nine months ended December 31, 2020. Please refer to page 10 for further details of the differences between U.S. GAAP and business segment amounts.

 

– 2 –


Table of Contents

<Business Segment Results>

Operating Results of Retail

 

     Billions of yen     % Change  
     For the nine months ended     (B-A)/(A)  
     December 31,
2019 (A)
    December 31,
2020 (B)
 

Net revenue

     247.6           272.0           9.9  

Non-interest expenses

     216.5       205.8       (5.0
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     31.0       66.2       113.4  
  

 

 

   

 

 

   

 

 

 

Net revenue increased by 9.9% from the same period in the prior year to 272.0 billion yen, primarily due to increasing commissions from brokerage and distribution of investment trusts. Non-interest expense decreased by 5.0% to 205.8 billion yen. As a result, income before income taxes increased by 113.4% to 66.2 billion yen.

Operating Results of Asset Management

 

     Billions of yen     % Change  
     For the nine months ended     (B-A)/(A)  
     December 31,
2019 (A)
    December 31,
2020 (B)
 

Net revenue

       85.6             98.2           14.7  

Non-interest expenses

     48.1       45.3       (5.8
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     37.5       52.9           41.0  
  

 

 

   

 

 

   

 

 

 

Net revenue increased by 14.7% from the same period in the prior year to 98.2 billion yen. Non-interest expense decreased by 5.8% to 45.3 billion yen. As a result, income before income taxes increased by 41.0% to 52.9 billion yen. Assets under management were 61.2 trillion yen as of December 31, 2020.

Operating Results of Wholesale

 

     Billions of yen     % Change  
     For the nine months ended     (B-A)/(A)  
     December 31,
2019 (A)
    December 31,
2020 (B)
 

Net revenue

     502.7           692.1           37.7  

Non-interest expenses

     420.6       461.9       9.8  
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     82.1       230.2       180.3   
  

 

 

   

 

 

   

 

 

 

Net revenue increased by 37.7% from the same period in the prior year to 692.1 billion yen. Non-interest expense increased by 9.8% to 461.9 billion yen. As a result, income before income taxes was 230.2 billion yen.

 

– 3 –


Table of Contents

Other Operating Results

 

     Billions of yen     % Change  
     For the nine months ended     (B-A)/(A)  
     December 31,
2019 (A)
    December 31,
2020 (B)
 

Net revenue

     219.3           162.6           (25.8

Non-interest expenses

     92.2       122.1       32.4  
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     127.1       40.6       (68.1
  

 

 

   

 

 

   

 

 

 

Net revenue was 162.6 billion yen including income of 71.1 billion yen profit resulting from the rights conversion related to the Tokyo Nihonbashi district redevelopment project. Income before income taxes was 40.6 billion yen.

 

(2)

Consolidated Financial Position

Total assets as of December 31, 2020 were 44,592.2 billion yen, an increase of 592.4 billion yen compared to March 31, 2020, mainly due to the increase in Securities borrowed and Trading assets. Total liabilities as of December 31, 2020 were 41,738.9 billion yen, an increase of 470.3 billion yen compared to March 31, 2020, mainly due to the increase in Trading liabilities. Total equity as of December 31, 2020 was 2,853.4 billion yen, an increase of 122.1 billion yen compared to March 31, 2020.

 

(3)

Consolidated Earnings Forecasts

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings and dividend forecasts.

 

(4)

Risks related to the COVID-19 pandemic

The COVID-19 pandemic has affected Nomura’s business, and this may continue in the future.

Various risks recognized related to the COVID-19 pandemic is disclosed in Risk Factors in Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 30, 2020) and Item 3. D. Risk Factors. in Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 30, 2020) for the year ended March 31, 2020.

 

– 4 –


Table of Contents
2.

Notes to the Summary Information

 

(1)

Changes in Accounting Policies

Measurement of Credit Losses on Financial Instruments

On April 1, 2020, Nomura adopted Accounting Standards Update 2016-13 “Measurement of Credit Losses on Financial Instruments” using a modified retrospective transition method. The impact of this adoption was, for financial instruments subject to current expected credit losses, ¥1,972 million increase in Allowance for doubtful accounts, ¥638 million increase in Other liabilities, ¥72 million increase of Deferred tax assets and cumulative effect adjustment to decrease Retained earnings, net of tax, of ¥2,538 million as of April 1, 2020.

For financial instruments elected for the fair value option, the impact was ¥9,774 million decrease in Loans receivable, ¥5,888 million increase in Other liabilities and cumulative effect adjustment to decrease Retained earnings, net of tax, of ¥15,662 million as of April 1, 2020.

 

3.

Quarterly Consolidated Financial Statements

The quarterly consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes to the consolidated financial statements of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 30, 2020) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 30, 2020) for the year ended March 31, 2020.

While the COVID-19 pandemic impacted some of the critical accounting estimates and underlying assumptions used in the consolidated financial statements during the year ended March 31, 2020, no significant further adverse changes in such estimates as a result of the COVID-19 pandemic occurred during the nine months ended December 31, 2020.

 

– 5 –


Table of Contents
(1)

Consolidated Balance Sheets

 

     Millions of yen  
     March 31,
2020
    December 31,
2020
    Increase/
(Decrease)
 
ASSETS       

Cash and cash deposits:

      

Cash and cash equivalents

     3,191,889       3,367,528       175,639  

Time deposits

     309,373       269,681       (39,692

Deposits with stock exchanges and other segregated cash

     373,686       289,866       (83,820
  

 

 

   

 

 

   

 

 

 

Total cash and cash deposits

     3,874,948       3,927,075       52,127  
  

 

 

   

 

 

   

 

 

 

Loans and receivables:

      

Loans receivable

     2,857,405       2,559,519       (297,886

Receivables from customers

     541,284       442,696       (98,588

Receivables from other than customers

     1,731,236       733,653       (997,583

Allowance for doubtful accounts

     (13,012     (9,816     3,196  
  

 

 

   

 

 

   

 

 

 

Total loans and receivables

     5,116,913       3,726,052       (1,390,861
  

 

 

   

 

 

   

 

 

 

Collateralized agreements:

      

Securities purchased under agreements to resell

     12,377,315       12,522,320       145,005  

Securities borrowed

     3,529,797       4,430,006       900,209  
  

 

 

   

 

 

   

 

 

 

Total collateralized agreements

     15,907,112       16,952,326       1,045,214  
  

 

 

   

 

 

   

 

 

 

Trading assets and private equity and debt investments:

      

Trading assets*

     16,853,822       17,553,773       699,951  

Private equity and debt investments*

     44,278       56,518       12,240  
  

 

 

   

 

 

   

 

 

 

Total trading assets and private equity and debt investments

     16,898,100       17,610,291       712,191  
  

 

 

   

 

 

   

 

 

 

Other assets:

      

Office buildings, land, equipment and facilities

(net of accumulated depreciation and amortization of
¥397,114 million as of March 31, 2020 and
¥372,912 million as of December 31, 2020)

     440,512       458,602       18,090  

Non-trading debt securities*

     455,392       415,082       (40,310

Investments in equity securities*

     112,175       115,714       3,539  

Investments in and advances to affiliated companies*

     367,641       398,075       30,434  

Other

     827,022       989,028       162,006  
  

 

 

   

 

 

   

 

 

 

Total other assets

     2,202,742       2,376,501       173,759  
  

 

 

   

 

 

   

 

 

 

Total assets

     43,999,815       44,592,245       592,430  
  

 

 

   

 

 

   

 

 

 

 

*

Including securities pledged as collateral

 

– 6 –


Table of Contents
     Millions of yen  
     March 31,
2020
    December 31,
2020
    Increase/
(Decrease)
 
LIABILITIES AND EQUITY       

Short-term borrowings

     1,486,733       1,335,006       (151,727

Payables and deposits:

      

Payables to customers

     1,467,434       1,349,856       (117,578

Payables to other than customers

     1,653,495       1,811,503       158,008  

Deposits received at banks

     1,276,153       1,200,047       (76,106
      

 

 

   

 

 

   

 

 

 

Total payables and deposits

     4,397,082       4,361,406       (35,676
  

 

 

   

 

 

   

 

 

 

Collateralized financing:

      

Securities sold under agreements to repurchase

     16,349,182       15,361,464       (987,718

Securities loaned

     961,446       1,472,905       511,459  

Other secured borrowings

     717,711       394,182       (323,529
  

 

 

   

 

 

   

 

 

 

Total collateralized financing

     18,028,339       17,228,551       (799,788
  

 

 

   

 

 

   

 

 

 

Trading liabilities

     8,546,284       9,767,775       1,221,491  

Other liabilities

     1,034,448       1,181,101       146,653  

Long-term borrowings

     7,775,665       7,865,014       89,349  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     41,268,551       41,738,853       470,302  
  

 

 

   

 

 

   

 

 

 

Equity

      

NHI shareholders’ equity:

      

Common stock

      

                Authorized

    -    6,000,000,000 shares       

Issued

    -  

 3,493,562,601 shares as of March 31, 2020 and

 3,233,562,601 shares as of December 31, 2020

      

Outstanding

    -  

 3,038,587,493 shares as of March 31, 2020 and

 3,059,293,177 shares as of December 31, 2020

     594,493       594,493       —    

Additional paid-in capital

     683,232       690,208       6,976  

Retained earnings

     1,645,451       1,734,915       89,464  

Accumulated other comprehensive income (loss)

     (26,105     (132,680     (106,575
      

 

 

   

 

 

   

 

 

 

Total NHI shareholders’ equity before treasury stock

     2,897,071       2,886,936       (10,135

Common stock held in treasury, at cost -

      

454,975,108 shares as of March 31, 2020 and

      

174,269,424 shares as of December 31, 2020

     (243,604     (93,313     150,291  
  

 

 

   

 

 

   

 

 

 

Total NHI shareholders’ equity

     2,653,467       2,793,623       140,156  
  

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     77,797       59,769       (18,028
  

 

 

   

 

 

   

 

 

 

Total equity

     2,731,264       2,853,392       122,128  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     43,999,815       44,592,245       592,430  
  

 

 

   

 

 

   

 

 

 

 

– 7 –


Table of Contents
(2)

Consolidated Statements of Income

 

     Millions of yen      % Change  
   For the nine months ended         
   December  31,
2019(A)
     December  31,
2020(B)
     (B-A)/(A)  

Revenue:

        

Commissions

     212,743        274,452        29.0  

Fees from investment banking

     76,379        73,997        (3.1

Asset management and portfolio service fees

     180,909        169,712        (6.2

Net gain on trading

     327,700        406,954        24.2  

Gain on private equity and debt investments

     3,275        4,237        29.4  

Interest and dividends

     618,404        278,639        (54.9

Gain on investments in equity securities

     1,488        8,936        500.5  

Other

     161,835        172,336        6.5  
  

 

 

    

 

 

    

 

 

 

Total revenue

     1,582,733        1,389,263        (12.2

Interest expense

     532,374        157,426        (70.4
  

 

 

    

 

 

    

 

 

 

Net revenue

     1,050,359        1,231,837        17.3  
  

 

 

    

 

 

    

 

 

 

Non-interest expenses:

        

Compensation and benefits

     374,514        412,119        10.0  

Commissions and floor brokerage

     74,565        82,512        10.7  

Information processing and communications

     126,939        129,306        1.9  

Occupancy and related depreciation

     53,756        54,223        0.9  

Business development expenses

     24,243        9,852        (59.4

Other

     123,363        147,054        19.2  
  

 

 

    

 

 

    

 

 

 

Total non-interest expenses

     777,380        835,066        7.4  
  

 

 

    

 

 

    

 

 

 

Income before income taxes

     272,979        396,771        45.3  

Income tax expense

     16,379        83,127        407.5  
  

 

 

    

 

 

    

 

 

 

Net income

     256,600        313,644        22.2  
  

 

 

    

 

 

    

 

 

 

Less: Net income attributable to noncontrolling interests

     5,127        5,120        (0.1
  

 

 

    

 

 

    

 

 

 

Net income attributable to NHI shareholders

     251,473        308,524        22.7  
  

 

 

    

 

 

    

 

 

 

Per share of common stock:

        
     Yen      % Change  

Basic-

        

Net income attributable to NHI shareholders per share

     77.36        101.03        30.6  
  

 

 

    

 

 

    

 

 

 

Diluted-

        

Net income attributable to NHI shareholders per share

     75.65        98.30        29.9  
  

 

 

    

 

 

    

 

 

 

 

– 8 –


Table of Contents
(3)

Consolidated Statements of Comprehensive Income

 

     Millions of yen     % Change  
   For the nine months ended     (B-A)/(A)  
   December  31,
2019(A)
    December  31,
2020(B)
 

Net income

     256,600       313,644       22.2  

Other comprehensive income (loss):

      

Cumulative translation adjustments:

      

Cumulative translation adjustments

     (16,837     (33,700     —    

Deferred income taxes

     67       76       13.4  
  

 

 

   

 

 

   

 

 

 

Total

     (16,770     (33,624     —    
  

 

 

   

 

 

   

 

 

 

Defined benefit pension plans:

      

Pension liability adjustment

     4,167       4,911       17.9  

Deferred income taxes

     625       (658     —    
  

 

 

   

 

 

   

 

 

 

Total

     4,792       4,253       (11.2
  

 

 

   

 

 

   

 

 

 

Own Credit Adjustments:

      

Own Credit Adjustments

     (19,640     (92,912     —    

Deferred income taxes

     2,256       15,532                588.5  
  

 

 

   

 

 

   

 

 

 

Total

     (17,384     (77,380     —    
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     (29,362     (106,751     —    
  

 

 

   

 

 

   

 

 

 

Comprehensive income

     227,238       206,893       (9.0

Less: Comprehensive income attributable to noncontrolling interests

     5,119       4,944       (3.4
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to NHI shareholders

     222,119       201,949       (9.1
  

 

 

   

 

 

   

 

 

 

 

(4)

Note with respect to the Assumption as a Going Concern

Not applicable.

 

– 9 –


Table of Contents
(5)

Segment Information – Operating Segment

The following table shows business segment information and reconciliation items to the consolidated statements of income.

 

     Millions of yen      % Change  
   For the nine months ended      (B-A)/(A)  
   December 31,
2019 (A)
    December 31,
2020 (B)
 

Net revenue

       

Business segment information:

       

Retail

     247,565       272,028        9.9  

Asset Management

     85,581       98,181        14.7  

Wholesale

     502,711       692,113        37.7  
  

 

 

   

 

 

    

 

 

 

Subtotal

     835,857       1,062,322        27.1  

Other

     219,279       162,614        (25.8
  

 

 

   

 

 

    

 

 

 

Net revenue

     1,055,136       1,224,936        16.1  
  

 

 

   

 

 

    

 

 

 

Reconciliation items:

       

Unrealized gain (loss) on investments in equity securities held for operating purposes

     (4,777     6,901        —    
  

 

 

   

 

 

    

 

 

 

Net revenue

     1,050,359       1,231,837        17.3  
  

 

 

   

 

 

    

 

 

 

Non-interest expenses

       

Business segment information:

       

Retail

     216,546       205,819        (5.0

Asset Management

     48,073       45,300        (5.8

Wholesale

     420,580       461,896        9.8  
  

 

 

   

 

 

    

 

 

 

Subtotal

     685,199       713,015        4.1  

Other

     92,181       122,051        32.4  
  

 

 

   

 

 

    

 

 

 

Non-interest expenses

     777,380       835,066        7.4  
  

 

 

   

 

 

    

 

 

 

Reconciliation items:

       

Unrealized gain (loss) on investments in equity securities held for operating purposes

     —         —          —    
  

 

 

   

 

 

    

 

 

 

Non-interest expenses

     777,380       835,066        7.4  
  

 

 

   

 

 

    

 

 

 

Income (loss) before income taxes

       

Business segment information:

       

Retail

     31,019       66,209        113.4  

Asset Management

     37,508       52,881        41.0  

Wholesale

     82,131       230,217        180.3  
  

 

 

   

 

 

    

 

 

 

Subtotal

     150,658       349,307        131.9  

Other*

     127,098       40,563        (68.1
  

 

 

   

 

 

    

 

 

 

Income (loss) before income taxes

     277,756       389,870        40.4  
  

 

 

   

 

 

    

 

 

 

Reconciliation items:

       

Unrealized gain (loss) on investments in equity securities held for operating purposes

     (4,777     6,901        —    
  

 

 

   

 

 

    

 

 

 

Income (loss) before income taxes

     272,979       396,771        45.3  
  

 

 

   

 

 

    

 

 

 

 

*

Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”

 

     Millions of yen      % Change  
   For the nine months ended      (B-A)/(A)  
   December 31,
2019 (A)
    December 31,
2020 (B)
 

Net gain (loss) related to economic hedging transactions

     22,170       2,014        (90.9

Realized gain (loss) on investments in equity securities held for operating purposes

     6,265       1,553        (75.2

Equity in earnings of affiliates

     21,072       22,258        5.6  

Corporate items

     (12,339     14,035        —    

Other

     89,930       703        (99.2
  

 

 

   

 

 

    

 

 

 

Total

     127,098       40,563        (68.1
  

 

 

   

 

 

    

 

 

 

 

– 10 –


Table of Contents
(6)

Significant Changes in Equity

Not applicable. For further details of the changes, please refer below.

 

     Millions of yen  
   For the nine months  ended
December 31, 2020
 

Common stock

  

Balance at beginning of year

     594,493  
  

 

 

 

Balance at end of period

     594,493  
  

 

 

 

Additional paid-in capital

  

Balance at beginning of year

     683,232  

Stock-based compensation awards

     5,860  

Changes in an affiliated company’s interests in its subsidiary

     1,116  
  

 

 

 

Balance at end of period

     690,208  
  

 

 

 

Retained earnings

  

Balance at beginning of year

     1,645,451  

Cumulative effect of change in accounting principle (1)

     (18,200

Net income attributable to NHI shareholders

     308,524  

Cash dividends

     (61,156

Gain (loss) on sales of treasury stock

     (500

Cancellation of treasury stock

     (139,204
  

 

 

 

Balance at end of period

     1,734,915  
  

 

 

 

Accumulated other comprehensive income (loss)

  

Cumulative translation adjustments

  

Balance at beginning of year

     (26,274

Net change during the period

     (33,448
  

 

 

 

Balance at end of period

     (59,722
  

 

 

 

Defined benefit pension plans

  

Balance at beginning of year

     (62,571

Pension liability adjustment

     4,253  
  

 

 

 

Balance at end of period

     (58,318
  

 

 

 

Own credit adjustments

  

Balance at beginning of year

     62,740  

Own credit adjustments

     (77,380
  

 

 

 

Balance at end of period

     (14,640
  

 

 

 

Balance at end of period

     (132,680
  

 

 

 

Common stock held in treasury

  

Balance at beginning of year

     (243,604

Repurchases of common stock

     (7

Sale of common stock

     0  

Common stock issued to employees

     11,094  

Cancellation of common stock

     139,204  
  

 

 

 

Balance at end of period

     (93,313
  

 

 

 

Total NHI shareholders’ equity

  
  

 

 

 

Balance at end of period

     2,793,623  
  

 

 

 

Noncontrolling interests

  

Balance at beginning of year

     77,797  

Net change during the period

     (18,028
  

 

 

 

Balance at end of period

     59,769  
  

 

 

 

Total equity

  
  

 

 

 

Balance at end of period

     2,853,392  
  

 

 

 

 

(1)

Represents the adjustment to initially apply Accounting Standards Update 2016-13 “Measurement of Credit Losses on Financial Instruments”, please refer to section “2. Notes to the Summary Information (1) Changes in Accounting Policies.”

 

– 11 –


Table of Contents
4.

Supplementary Information

 

(1)

Consolidated Statements of Income – Quarterly Comparatives

 

     Millions of yen      % Change     Millions of yen  
   For the three months ended      (B-A)/(A)     For the year  ended
March 31,
2020
 
   June 30,
2019
    September 30,
2019
    December 31,
2019
     March 31,
2020
    June 30,
2020
     September  30,
2020(A)
     December  31,
2020(B)
 

Revenue:

                      

Commissions

     68,200       65,254       79,289        96,062       85,512        92,253        96,687        4.8       308,805  

Fees from investment banking

     27,311       22,265       26,803        26,843       10,828        27,031        36,138        33.7       103,222  

Asset management and portfolio service fees

     59,963       59,926       61,020        57,293       53,656        57,417        58,639        2.1       238,202  

Net gain on trading

     112,825       105,609       109,266        28,909       139,089        131,463        136,402        3.8       356,609  

Gain (loss) on private equity and debt investments

     791       981       1,503        (3,368     1,070        1,805        1,362        (24.5     (93

Interest and dividends

     199,473       215,881       203,050        176,068       106,543        82,494        89,602        8.6       794,472  

Gain (loss) on investments in equity securities

     (2,838     2,083       2,243        (16,214     3,473        1,940        3,523        81.6       (14,726

Other

     45,654       101,905       14,276        4,156       113,878        24,939        33,519        34.4       165,991  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total revenue

     511,379       573,904       497,450        369,749       514,049        419,342        455,872        8.7       1,952,482  

Interest expense

     179,378       190,524       162,472        132,279       53,302        50,344        53,780        6.8       664,653  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net revenue

     332,001       383,380       334,978        237,470       460,747        368,998        402,092        9.0       1,287,829  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Non-interest expenses:

                      

Compensation and benefits

     125,102       120,425       128,987        104,906       138,297        137,006        136,816        (0.1     479,420  

Commissions and floor brokerage

     24,551       25,446       24,568        31,558       28,511        27,675        26,326        (4.9     106,123  

Information processing and communications

     41,757       42,361       42,821        43,378       43,238        42,584        43,484        2.1       170,317  

Occupancy and related depreciation

     19,120       18,360       16,276        19,230       17,058        19,056        18,109        (5.0     72,986  

Business development expenses

     7,828       7,906       8,509        7,642       2,832        3,632        3,388        (6.7     31,885  

Other

     38,837       40,396       44,130        55,474       49,000        55,418        42,636        (23.1     178,837  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total non-interest expenses

     257,195       254,894       265,291        262,188       278,936        285,371        270,759        (5.1     1,039,568  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Income (loss) before income taxes

     74,806       128,486       69,687        (24,718     181,811        83,627        131,333        57.0       248,261  

Income tax expense

     17,917       (11,875     10,337        12,515       37,513        14,704        30,910        110.2       28,894  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income (loss)

     56,889       140,361       59,350        (37,233     144,298        68,923        100,423        45.7       219,367  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

     1,056       1,787       2,284        (2,758     1,782        1,281        2,057        60.6       2,369  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net income (loss) attributable to NHI shareholders

     55,833       138,574       57,066        (34,475     142,516        67,642        98,366        45.4       216,998  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
     Yen      % Change     Yen  

Per share of common stock:

       

Basic-

                      

Net income (loss) attributable to NHI shareholders per share

     16.83       42.11       18.07        (11.29     46.77        22.13        32.16        45.3       67.76  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Diluted-

                      

Net income (loss) attributable to NHI shareholders per share

     16.48       41.23       17.63        (11.31     45.65        21.52        31.16        44.8       66.20  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

– 12 –


Table of Contents
(2)

Business Segment Information – Quarterly Comparatives

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of income.

 

     Millions of yen      % Change     Millions of yen  
     For the three months ended           

For the year ended

 
     June 30,
2019
    September 30,
2019
     December 31,
2019
    March 31,
2020
    June 30,
2020
     September  30,
2020(A)
    December  31,
2020(B)
     (B-A)/(A)     March 31,
2020
 

Net revenue

                     

Business segment information:

                     

Retail

     80,640       76,882        90,043       88,794       81,078        92,795       98,155        5.8       336,359  

Asset Management

     34,500       25,676        25,405       7,024       34,024        26,842       37,315        39.0       92,605  

Wholesale

     159,486       156,698        186,527       145,908       248,669        220,305       223,139        1.3       648,619  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Subtotal

     274,626       259,256        301,975       241,726       363,771        339,942       358,609        5.5       1,077,583  

Other

     60,289       123,295        35,695       12,294       94,673        27,102       40,839        50.7       231,573  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Net revenue

     334,915       382,551        337,670       254,020       458,444        367,044       399,448        8.8       1,309,156  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Reconciliation items:

                     

Unrealized gain (loss) on investments in equity securities held for operating purposes

     (2,914     829        (2,692     (16,550     2,303        1,954       2,644        35.3       (21,327
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Net revenue

     332,001       383,380        334,978       237,470       460,747        368,998       402,092        9.0       1,287,829  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Non-interest expenses

 

             

Business segment information:

                     

Retail

     72,522       71,621        72,403       70,380       66,009        69,970       69,840        (0.2     286,926  

Asset Management

     16,358       15,630        16,085       15,760       14,870        15,442       14,988        (2.9     63,833  

Wholesale

     139,479       137,777        143,324       135,819       160,800        154,828       146,268        (5.5     556,399  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Subtotal

     228,359       225,028        231,812       221,959       241,679        240,240       231,096        (3.8     907,158  

Other

     28,836       29,866        33,479       40,229       37,257        45,131       39,663        (12.1     132,410  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Non-interest expenses

     257,195       254,894        265,291       262,188       278,936        285,371       270,759        (5.1     1,039,568  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Reconciliation items:

                     

Unrealized gain (loss) on investments in equity securities held for operating purposes

     —         —          —         —         —          —         —          —         —    
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Non-interest expenses

     257,195       254,894        265,291       262,188       278,936        285,371       270,759        (5.1     1,039,568  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) before income taxes

 

             

Business segment information:

                     

Retail

     8,118       5,261        17,640       18,414       15,069        22,825       28,315        24.1       49,433  

Asset Management

     18,142       10,046        9,320       (8,736     19,154        11,400       22,327        95.9       28,772  

Wholesale

     20,007       18,921        43,203       10,089       87,869        65,477       76,871        17.4       92,220  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Subtotal

     46,267       34,228        70,163       19,767       122,092        99,702       127,513        27.9       170,425  

Other*

     31,453       93,429        2,216       (27,935     57,416        (18,029     1,176        —         99,163  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) before income taxes

     77,720       127,657        72,379       (8,168     179,508        81,673       128,689        57.6       269,588  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Reconciliation items:

                     

Unrealized gain (loss) on investments in equity securities held for operating purposes

     (2,914     829        (2,692     (16,550     2,303        1,954       2,644        35.3       (21,327
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Income (loss) before income taxes

     74,806       128,486        69,687       (24,718     181,811        83,627       131,333        57.0       248,261  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

*

Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”

 

     Millions of yen     % Change      Millions of yen  
   For the three months ended     (B-A)/(A)      For the year  ended
March 31,
2020
 
   June 30,
2019
     September 30,
2019
    December 31,
2019
    March 31,
2020
    June 30,
2020
    September  30,
2020(A)
    December  31,
2020(B)
 

Net gain (loss) related to economic hedging transactions

     12,794        7,043       2,333       (4,622     5,577       (4,965     1,402       —          17,548  

Realized gain (loss) on investments in equity securities held for operating purposes

     76        1,254       4,935       336       685       124       744       500.0        6,601  

Equity in earnings of affiliates

     8,265        8,009       4,798       13,918       6,609       5,251       10,398       98.0        34,990  

Corporate items

     1,391        (4,635     (9,095     (9,901     45,090       (16,005     (15,050     —          (22,240

Other

     8,927        81,758       (755     (27,666     (545     (2,434     3,682       —          62,264  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total

     31,453        93,429       2,216       (27,935     57,416       (18,029     1,176       —          99,163  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

– 13 –


Table of Contents
(3)

Other

Quarterly financial information for Nomura Securities Co., Ltd. can be found at the following URL.

https://www.nomuraholdings.com/company/group/nsc/pdf/2021_3q.pdf

 

– 14 –