Nomura Q2 profit drops on stock market slump

TOKYO, Oct 29 (BestGrowthStock) – Nomura Holdings (8604.T: ), Japan’s
biggest brokerage, said its quarterly net profit dropped 96
percent as it struggled to make money from trading and
underwriting fees amid a persistent stock market slump.

Nomura, which is expanding in Asia, Europe and the United
States following its purchase of part of Lehman Brothers, booked
a 1.05 billion yen ($13 million) net profit for the
July-September quarter, compared with 27.7 billion yen a year
earlier.

The result missed the average estimate of a 5.6 billion yen
profit in a poll of three analysts by Reuters.

Japan’s benchmark Nikkei share average was flat during the
quarter and has stagnated as investors who pulled back following
the European debt crisis continued to steer clear of Japanese
stocks.

Sluggish trading has also hurt Nomura’s global rivals such as
and Goldman Sachs (GS.N: ), which saw its net trading revenue slump
by a third in in its latest quarter, and Credit Suisse (CS.N: ).

For the financial year to March, Nomura’s net profit is
expected to total 42.6 billion yen, according to the average
forecast of six analysts. Nomura does not issue earnings
forecasts.

Shares of Nomura closed down 3 percent before the earnings
announcement, underperforming the securities subindex’s
(.ISCEU.T: ), 1.9 percent fall.
(Reporting by Tim Kelly; Editing by Chris Gallagher)

Nomura Q2 profit drops on stock market slump