Nomura Holdings Inc. - ADR

Strong Q1 performance; earnings quality improving (ROE 15.4%) - All divisions delivered higher revenue and income before tax vs. prior quarter; ROE hit 15.4% (highest since Apr–Jun 2020). - Management attributes strength to structural reforms and progress toward the 2030 vision (ROE target 10%–12% or more by 2030; income before tax target ≥ JPY 750bn by 2030). - Good/surprising: profit stability is improving as profits are more balanced across divisions and stable revenues expanded ~60% YoY (per CFO remarks).

Wealth Management: recurring revenue momentum at record levels - Net revenue +9% QoQ to JPY 145.4bn; income before tax +16% to JPY 71.1bn. - Recurring revenue reached an all-time high JPY 59.2bn; recurring revenue assets net inflow JPY 539.6bn (also an all-time high). - Recurring revenue assets totaled JPY 31.7tn at end of June (17th consecutive quarter of net inflows). - Recurring revenue cost coverage ratio 76% (steady progress toward 2030 target). - KPI surprise/detail: even without half-year investment advisory fees, recurring revenue still hit a record; workplace client assets rose to JPY 10tn (ESOP inflows).

Wholesale division: equities-driven strength; outlook cautious due to seasonality/volatility - Wholesale net revenue +20% QoQ to JPY 369.1bn; income before tax +116% QoQ to JPY 93.3bn. - Global Markets net revenue +26% to JPY 318.7bn; Equities revenue +41% to JPY 179.4bn (derivatives/flow and financing/trading contributing). - Investment Banking: net revenue -9% to JPY 50.4bn, but all-time high for Q1 (above JPY 50bn first time since 2016/17 earliest comparable). - July check (challenge): CFO said Wholesale revenue slowed somewhat in July due to seasonality (summer); YoY it is roughly flat. - Key investor question answered: CFO expects equities “baseline” may remain higher despite some short-term normalization after very strong Q1.