By Itsuki Okuda / Yomiuri Shimbun Staff Writer
Nomura Holdings Inc. has raised its pre-tax profit target to more than 750 billion yen, 50% more than the previous target, in its updated management vision that runs through fiscal 2030.
President and Group CEO Kentaro Okuda said at an investor briefing, "We want to continue to lead the way (in the Japanese government's push to make the nation) a 'leading asset management center.'"
The company also raised its target for return on equity, a key indicator of management efficiency, from "8%-10% or more" to "10%-12% or more."
In its core division for wealthy customers, the company aims to help customer grow their assets with such services as loans secured by securities, through collaboration with its banking division. The firm also aims to increase assets for which it receives fees based on customer balances, such as in investment trusts and discretionary investment services. These assess now stand at 28 trillion yen and the goal is to raise this to 41 trillion yen by fiscal 2030, which ends in March 2031. Additionally, the company is considering mergers and acquisitions to expand its business in areas such as asset management.
Buoyed by the booming stock market, the company logged a pre-tax profit of 539.8 billion yen on a consolidated basis for the fiscal year ended March 2026, passing 500 billion yen ahead of schedule.
The following is excerpted from remarks by Okuda during a question-and-answer session with reporters that followed the briefing.
Question: You achieved the target ahead of schedule, nearly two years after setting it. Was the original target too conservative?
Kentaro Okuda: I don't think it was too conservative. I believe the main factor was that the results of the structural reforms we've been working on have materialized ahead of schedule.
Question: Regarding the goal of increasing the pre-tax profit to 750 billion yen, which divisions do you expect to contribute?
Okuda: The Investment Management Division is expected to contribute 150 billion yen, and the Banking Division 50 billion yen, for a total of about 200 billion yen.
The Wealth Management Division and the Wholesale Division are expected to contribute the remaining 550 billion yen. Although it depends on market conditions, these two divisions are already generating figures close to that target. We consider this a level we can achieve if things go smoothly.
Question: Last year, you acquired a U.S. investment firm and others owned by Australia's Macquarie group. For your future growth, where do you see room for investment?
Okuda: Since we acquired a firm in the United States, we intend to invest in any companies or divisions offering products that could be leveraged with the firm.
Question: What is your stance on global management?
Okuda: In terms of capital flows, Japanese funds have been flowing out of the country for decades. But now structural reforms are taking place, and the Japanese market is attracting global attention due to improvement in corporate governance at Japanese companies, and due to geopolitical issues. This is the kind of environment where Nomura can best leverage its strengths.
On the other hand, the Wealth Management Division, although it is primarily domestic, is performing very strongly, propelled by (the government's) initiative to make Japan a "leading asset management center" and brisk market conditions.
It might seem like we are "chasing two rabbits," but I hope to lead the way for growth both domestically and internationally.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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June 04, 2026 07:55 ET (11:55 GMT)
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