Nomura Holdings shares fell after quarterly profit dropped more than analysts expected, due to a loss in Europe and one-time costs from a major acquisition. The stock slid as much as 5.3% on Monday morning in Tokyo before paring the decline to about 3.3%. Net income for the fiscal third quarter ended December 31 fell 9.7% from a year earlier to ¥91.6 billion.
Japan's largest brokerage, Nomura Holdings, reported its fiscal third-quarter results on Friday. Net income for the period ended December 31 fell 9.7% from a year earlier to ¥91.6 billion ($590 million), missing analysts' estimates due to a loss in its Europe business and one-time costs related to a major acquisition.
The shares dropped as much as 5.3% on Monday morning in Tokyo, marking the biggest intraday decline in more than nine months, before trimming the loss to about 3.3%. This reaction underscores investor concerns over the firm's performance amid global market pressures.
Nomura, a major Japanese financial institution strong in investment banking and asset management, highlighted challenges in Europe that could impact future growth. While the company has not provided detailed comments, the market is watching for recovery measures.
