Edgar Filing: NOMURA HOLDINGS INC

FORM 6-K

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 2018

NOMURA HOLDINGS, INC.

(Translation of registrant’s name into English)

9-1, 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):

Information furnished on this form:

EXHIBIT


Exhibit Number

1.		Financial Summary – Nine months ended December 31, 2017

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 1, 2018	By:	/s/ Hajime Ikeda
		Hajime Ikeda
		Senior Managing Director

Financial Summary For the Nine Months Ended December 31, 2017 (U.S. GAAP)


Date:		February 1, 2018
Company name (code number):		Nomura Holdings, Inc. (8604)
Stock exchange listings:		(In Japan) Tokyo, Nagoya (Overseas) New York, Singapore
Representative:		Koji Nagai President and Group CEO, Nomura Holdings, Inc.
For inquiries:		Michio Okazaki Managing Director, Head of Management Accounting and Investor Relations, Nomura Holdings, Inc. Tel: (Country Code 81) 3-5255-1000 URL: http://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results


	(Rounded to nearest million)

	For the nine months ended December 31
	2016						2017
	(Millions of yen, except per share data)
				% Change from December 31, 2015						% Change from December 31, 2016
Total revenue		1,288,405			(5.3	%)		1,460,944			13.4	%
Net revenue		1,054,120			(5.5	%)		1,118,932			6.1	%
Income before income taxes		240,487			35.5	%		281,235			16.9	%
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		178,351			18.3	%		196,668			10.3	%
Comprehensive income		190,070			43.4	%		181,189			(4.7	%)
Basic-Net income attributable to NHI shareholders per share (Yen)		49.94						56.20
Diluted-Net income attributable to NHI shareholders per share (Yen)		48.76						55.12
Return on shareholders’ equity-annualized		8.6	%					9.3	%

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

(2) Financial Position


	At March 31			At December 31
	2017			2017
	(Millions of yen, except per share data)
Total assets		42,852,078			44,479,642
Total equity		2,843,791			2,905,681
Total NHI shareholders’ equity		2,789,916			2,841,715
Total NHI shareholders’ equity as a percentage of total assets		6.5	%		6.4	%
Total NHI shareholders’ equity per share (Yen)		790.70			835.72

2. Cash Dividends


	For the year ended March 31
	2017		2018		2018 (Plan)
	(Yen amounts)
Dividends per share
Dividends record dates
At June 30		—		—		—
At September 30		9.00		9.00		—
At December 31		—		—		—
At March 31		11.00		—		Unconfirmed
For the year		20.00		—		Unconfirmed

Note: Fiscal year 2018 Q4 dividend forecasts are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2018.”

3. Earnings Forecasts for the year ending March 31, 2018

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 in accordance with changes in the scope of consolidation.)

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

(3) Changes in accounting policies

Changes in accounting policies due to amendments to the accounting standards : None

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

(4) Number of shares issued (common stock)


	At March 31		At December 31
	2017		2017
Number of shares outstanding (including treasury stock)		3,822,562,601		3,643,562,601
Number of treasury stock		294,133,150		243,250,441

	For the nine months ended December 31
	2016		2017
Average number of shares outstanding (year-to-date)		3,571,089,578		3,499,513,649

*This quarterly report is not subject to quarterly review.

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

2. 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
(7) Significant Subsequent Events			P.12

3. Supplementary Information			P.13

(1) Consolidated Statements of Income – Quarterly Comparatives			P.13
(2) Business Segment Information – Quarterly Comparatives			P.14
(3) Changes in Tax Laws			P.15
(4) Other			P.16

– 1 –

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, 2016 (A)			December 31, 2017(B)			(B-A)/(A)
Net revenue		1,054.1			1,118.9			6.1
Non-interest expenses		813.6			837.7			3.0

Income (loss) before income taxes		240.5			281.2			16.9
Income tax expense		60.7			79.8			31.4

Net income (loss)		179.8			201.4			12.1

Less: Net income (loss) attributable to noncontrolling interests		1.4			4.8			239.9

Net income (loss) attributable to NHI shareholders		178.4			196.7			10.3

Return on shareholders’ equity-annualized		8.6	%		9.3	%		—

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 1,118.9 billion yen for the nine months ended December 31, 2017, an increase of 6.1% from the same period in the prior year. Non-interest expenses increased by 3.0% from the same period in the prior year to 837.7 billion yen. Income before income taxes was 281.2 billion yen and net income attributable to NHI shareholders was 196.7 billion yen for the nine months ended December 31, 2017.

Segment Information


	Billions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2016 (A)		December 31, 2017 (B)		(B-A)/(A)
Net revenue		1,044.7		1,112.0		6.4
Non-interest expenses		813.6		837.7		3.0

Income (loss) before income taxes		231.0		274.3		18.7

In the above segment information totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the nine months ended December 31, 2017 was 1,112.0 billion yen, an increase of 6.4% from the same period in the prior year. Non-interest expenses increased by 3.0% from the same period in the prior year to 837.7 billion yen. Income before income taxes was 274.3 billion yen for the nine months ended December 31, 2017. Please refer to page 10 for further details of the differences between U.S. GAAP and business segment amounts.

– 2 –

<Business Segment Results>

Operating Results of Retail


	Billions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2016 (A)		December 31, 2017 (B)		(B-A)/(A)
Net revenue		271.3		314.8		16.0
Non-interest expenses		222.2		233.0		4.9

Income (loss) before income taxes		49.0		81.7		66.7

Net revenue increased by 16.0% from the same period in the prior year to 314.8 billion yen, primarily due to increasing commissions from brokerage. Non-interest expense increased by 4.9% to 233.0 billion yen. As a result, income before income taxes increased by 66.7% to 81.7 billion yen.

Operating Results of Asset Management


	Billions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2016 (A)		December 31, 2017 (B)		(B-A)/(A)
Net revenue		76.1		100.0		31.4
Non-interest expenses		42.5		45.1		6.3

Income (loss) before income taxes		33.7		54.9		63.0

Net revenue increased by 31.4% from the same period in the prior year to 100.0 billion yen. Non-interest expense increased by 6.3% to 45.1 billion yen. As a result, income before income taxes increased by 63.0% to 54.9 billion yen. Assets under management were 50.7 trillion yen as of December 31, 2017.

Operating Results of Wholesale


	Billions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2016 (A)		December 31, 2017 (B)		(B-A)/(A)
Net revenue		568.1		503.9		(11.3	)
Non-interest expenses		434.8		447.5		2.9

Income (loss) before income taxes		133.3		56.4		(57.7	)

Net revenue decreased by 11.3% from the same period in the prior year to 503.9 billion yen. Non-interest expense increased by 2.9% to 447.5 billion yen. As a result, income before income taxes decreased by 57.7% from the same period in the prior year to 56.4 billion yen.

– 3 –

Other Operating Results


	Billions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2016 (A)		December 31, 2017 (B)		(B-A)/(A)
Net revenue		129.2		193.3		49.6
Non-interest expenses		114.2		112.0		(1.9	)

Income (loss) before income taxes		15.0		81.4		441.4

Net revenue was 193.3 billion yen. Income before income taxes was 81.4 billion yen.

(2)

Consolidated Financial Position

Total assets as of December 31, 2017 were 44,479.6 billion yen, an increase of 1,627.6 billion yen compared to March 31, 2017, mainly due to the increase in Trading assets. Total liabilities as of December 31, 2017 were 41,574.0 billion yen, an increase of 1,565.7 billion yen compared to March 31, 2017, mainly due to the increase in Trading liabilities and Long-term borrowings. Total equity as of December 31, 2017 was 2,905.7 billion yen, an increase of 61.9 billion yen compared to March 31, 2017. During the nine months ended December 31, 2017, Nomura cancelled 179,000,000 shares of its own shares.

(3)

Consolidated Earnings Forecasts

– 4 –

2.	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 26, 2017) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 26, 2017) for the year ended March 31, 2017.

– 5 –

(1)

Consolidated Balance Sheets


	Millions of yen
	March 31, 2017			December 31, 2017			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		2,536,840			2,357,073			(179,767	)
Time deposits		207,792			230,526			22,734
Deposits with stock exchanges and other segregated cash		227,456			250,622			23,166

Total cash and cash deposits		2,972,088			2,838,221			(133,867	)

Loans and receivables:
Loans receivable		1,875,828			2,243,227			367,399
Receivables from customers		148,378			247,014			98,636
Receivables from other than customers		1,076,773			1,216,383			139,610
Allowance for doubtful accounts		(3,551	)		(3,678	)		(127	)

Total loans and receivables		3,097,428			3,702,946			605,518

Collateralized agreements:
Securities purchased under agreements to resell		11,456,591			12,465,454			1,008,863
Securities borrowed		7,273,234			6,088,171			(1,185,063	)

Total collateralized agreements		18,729,825			18,553,625			(176,200	)

Trading assets and private equity investments:
Trading assets*		15,165,310			16,693,155			1,527,845
Private equity investments		27,054			17,231			(9,823	)

Total trading assets and private equity investments		15,192,364			16,710,386			1,518,022

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥445,000 million as of March 31, 2017 and ¥465,860 million as of December 31, 2017)		349,696			325,284			(24,412	)
Non-trading debt securities*		775,025			717,488			(57,537	)
Investments in equity securities*		146,730			158,456			11,726
Investments in and advances to affiliated companies*		420,116			402,690			(17,426	)
Other		1,168,806			1,070,546			(98,260	)

Total other assets		2,860,373			2,674,464			(185,909	)

Total assets		42,852,078			44,479,642			1,627,564

*	Including securities pledged as collateral

– 6 –


			Millions of yen
			March 31, 2017			December 31, 2017			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings				543,049			688,385			145,336
Payables and deposits:
Payables to customers				1,005,670			1,177,179			171,509
Payables to other than customers				1,569,922			1,539,948			(29,974	)
Deposits received at banks				1,132,843			1,199,380			66,537

Total payables and deposits				3,708,435			3,916,507			208,072

Collateralized financing:
Securities sold under agreements to repurchase				17,095,898			17,102,282			6,384
Securities loaned				1,627,124			1,721,945			94,821
Other secured borrowings				338,069			481,879			143,810

Total collateralized financing				19,061,091			19,306,106			245,015

Trading liabilities				8,191,794			8,842,268			650,474
Other liabilities				1,308,510			1,144,130			(164,380	)
Long-term borrowings				7,195,408			7,676,565			481,157

Total liabilities				40,008,287			41,573,961			1,565,674

Equity
NHI shareholders’ equity:
Common stock
Authorized	-	6,000,000,000 shares
Issued	-	3,822,562,601 shares as of March 31, 2017 and
		3,643,562,601 shares as of December 31, 2017
Outstanding	-	3,528,429,451 shares as of March 31, 2017 and
		3,400,312,160 shares as of December 31, 2017		594,493			594,493			—
Additional paid-in capital				681,329			675,128			(6,201	)
Retained earnings				1,663,234			1,712,489			49,255
Accumulated other comprehensive income				33,652			12,106			(21,546	)

Total NHI shareholders’ equity before treasury stock				2,972,708			2,994,216			21,508
Common stock held in treasury, at cost -
		294,133,150 shares as of March 31, 2017 and
		243,250,441 shares as of December 31, 2017		(182,792	)		(152,501	)		30,291

Total NHI shareholders’ equity				2,789,916			2,841,715			51,799

Noncontrolling interests				53,875			63,966			10,091

Total equity				2,843,791			2,905,681			61,890

Total liabilities and equity				42,852,078			44,479,642			1,627,564

– 7 –

(2) Consolidated Statements of Income


	Millions of yen					% Change
	For the nine months ended					(B-A)/(A)
	December 31, 2016(A)		December 31, 2017(B)			(B-A)/(A)
Revenue:
Commissions		237,152		277,947			17.2
Fees from investment banking		64,409		79,079			22.8
Asset management and portfolio service fees		159,858		183,322			14.7
Net gain on trading		367,286		296,583			(19.3	)
Gain (loss) on private equity investments		163		(2,352	)		—
Interest and dividends		332,797		437,449			31.4
Gain on investments in equity securities		10,553		7,654			(27.5	)
Other		116,187		181,262			56.0

Total revenue		1,288,405		1,460,944			13.4
Interest expense		234,285		342,012			46.0

Net revenue		1,054,120		1,118,932			6.1

Non-interest expenses:
Compensation and benefits		381,510		389,656			2.1
Commissions and floor brokerage		70,016		74,269			6.1
Information processing and communications		128,002		140,881			10.1
Occupancy and related depreciation		51,910		51,070			(1.6	)
Business development expenses		24,025		26,033			8.4
Other		158,170		155,788			(1.5	)

Total non-interest expenses		813,633		837,697			3.0

Income before income taxes		240,487		281,235			16.9
Income tax expense		60,730		79,788			31.4

Net income		179,757		201,447			12.1

Less: Net income attributable to noncontrolling interests		1,406		4,779			239.9

Net income attributable to NHI shareholders		178,351		196,668			10.3

Per share of common stock:

	Yen					% Change
Basic-
Net income attributable to NHI shareholders per share		49.94		56.20			12.5

Diluted-
Net income attributable to NHI shareholders per share		48.76		55.12			13.0

– 8 –

(3) Consolidated Statements of Comprehensive Income


	Millions of yen						% Change
	For the nine months ended						(B-A)/(A)
	December 31, 2016(A)			December 31, 2017(B)			(B-A)/(A)
Net income		179,757			201,447			12.1
Other comprehensive income (loss):
Cumulative translation adjustments:
Cumulative translation adjustments		27,770			(29,831	)		—
Deferred income taxes		(1,332	)		13,335			—

Total		26,438			(16,496	)		—

Defined benefit pension plans:
Pension liability adjustment		1,197			1,124			(6.1	)
Deferred income taxes		(334	)		(336	)		—

Total		863			788			(8.7	)

Non-trading securities:
Net unrealized gain (loss) on non-trading securities		(7,606	)		2,165			—
Deferred income taxes		2,463			(539	)		—

Total		(5,143	)		1,626			—

Own Credit Adjustments:
Own Credit Adjustments		(13,865	)		(7,197	)		—
Deferred income taxes		2,020			1,021			(49.4	)

Total		(11,845	)		(6,176	)		—

Total other comprehensive income (loss)		10,313			(20,258	)		—

Comprehensive income		190,070			181,189			(4.7	)
Less: Comprehensive income attributable to noncontrolling interests		147			6,067			—

Comprehensive income attributable to NHI shareholders		189,923			175,122			(7.8	)

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

Not applicable.

– 9 –

(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
	December 31, 2016 (A)		December 31, 2017 (B)		(B-A)/(A)
Net revenue

Business segment information:
Retail		271,257		314,754		16.0
Asset Management		76,118		100,018		31.4
Wholesale		568,080		503,927		(11.3	)

Subtotal		915,455		918,699		0.4
Other		129,213		193,340		49.6

Net revenue		1,044,668		1,112,039		6.4

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		9,452		6,893		(27.1	)

Net revenue		1,054,120		1,118,932		6.1


Non-interest expenses

Business segment information:
Retail		222,233		233,028		4.9
Asset Management		42,458		45,148		6.3
Wholesale		434,757		447,545		2.9

Subtotal		699,448		725,721		3.8
Other		114,185		111,976		(1.9	)

Non-interest expenses		813,633		837,697		3.0

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—		—		—

Non-interest expenses		813,633		837,697		3.0


Income (loss) before income taxes

Business segment information:
Retail		49,024		81,726		66.7
Asset Management		33,660		54,870		63.0
Wholesale		133,323		56,382		(57.7	)

Subtotal		216,007		192,978		(10.7	)
Other*		15,028		81,364		441.4

Income (loss) before income taxes		231,035		274,342		18.7

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		9,452		6,893		(27.1	)

Income (loss) before income taxes		240,487		281,235		16.9

* 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
	December 31, 2016 (A)			December 31, 2017 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		(8,093	)		(8,115	)		—
Realized gain (loss) on investments in equity securities held for operating purposes		1,101			761			(30.9	)
Equity in earnings of affiliates		22,963			23,231			1.2
Corporate items		(10,341	)		(1,635	)		—
Other		9,398			67,122			614.2

Total		15,028			81,364			441.4

– 10 –

(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, 2017
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		681,329
Issuance and exercise of common stock options		(6,201	)

Balance at end of period		675,128

Retained earnings
Balance at beginning of year		1,663,234
Net income attributable to NHI shareholders		196,668
Cash dividends		(31,375	)
Gain (loss) on sales of treasury stock		(4,097	)
Cancellation of treasury stock		(111,941	)

Balance at end of period		1,712,489

Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year		47,767
Net change during the period		(17,340	)

Balance at end of period		30,427

Defined benefit pension plans
Balance at beginning of year		(41,020	)
Pension liability adjustment		788

Balance at end of period		(40,232	)

Non-trading securities
Balance at beginning of year		20,344
Net unrealized gain (loss) on non-trading securities		1,182

Balance at end of period		21,526

Own credit adjustments
Balance at beginning of year		6,561
Own credit adjustments		(6,176	)

Balance at end of period		385

Balance at end of period		12,106

Common stock held in treasury
Balance at beginning of year		(182,792	)
Repurchases of common stock		(101,268	)
Sale of common stock		0
Common stock issued to employees		19,055
Cancellation of common stock		111,941
Other net change in treasury stock		563

Balance at end of period		(152,501	)

Total NHI shareholders’ equity

Balance at end of period		2,841,715

Noncontrolling interests
Balance at beginning of year		53,875
Net change during the period		10,091

Balance at end of period		63,966

Total equity

Balance at end of period		2,905,681

– 11 –

(7)

Significant Subsequent Events

Participation in Tender Offer for the Asahi Fire And Marine Insurance Co., Ltd. (“AFM”)

On January 29, 2018, NHI has reached an agreement with Rakuten, Inc. (“Rakuten”) in relation to a tender offer (“Tender Offer”) to be made by Rakuten for AFM, a consolidated subsidiary of NHI. Under the agreement, NHI will tender 4,369,100 ordinary shares and 2,084,000 preferred shares it currently owns.

After the settlement of the Tender Offer scheduled for March 30, 2018, Rakuten will pay 33.8 billion yen to NHI. The transaction will generate pretax income of approximately 9 billion yen which will be booked in NHI’s consolidated financial results for the year ending March 31, 2018. Following the completion of the Tender Offer, AFM will no longer be a consolidated subsidiary of NHI.

– 12 –

3.	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, 2017
	June 30, 2016			September 30, 2016			December 31, 2016		March 31, 2017			June 30, 2017		September 30, 2017(A)			December 31, 2017(B)			(B-A)/(A)			For the year ended March 31, 2017
Revenue:
Commissions		76,255			74,640			86,257		89,977			90,968		85,324			101,655			19.1			327,129
Fees from investment banking		17,313			23,353			23,743		28,171			22,707		27,083			29,289			8.1			92,580
Asset management and portfolio service fees		52,612			52,140			55,106		56,621			58,343		61,212			63,767			4.2			216,479
Net gain on trading		140,143			118,758			108,385		108,301			120,467		88,391			87,725			(0.8	)		475,587
Gain (loss) on private equity investments		(13	)		(420	)		596		1,208			359		(330	)		(2,381	)		—			1,371
Interest and dividends		106,551			108,863			117,383		108,239			134,392		141,612			161,445			14.0			441,036
Gain (loss) on investments in equity securities		(9,966	)		7,654			12,865		(2,845	)		62		3,060			4,532			48.1			7,708
Other		35,517			41,121			39,549		37,439			40,628		56,037			84,597			51.0			153,626

Total revenue		418,412			426,109			443,884		427,111			467,926		462,389			530,629			14.8			1,715,516
Interest expense		79,932			79,114			75,239		78,034			107,103		110,896			124,013			11.8			312,319

Net revenue		338,480			346,995			368,645		349,077			360,823		351,493			406,616			15.7			1,403,197

Non-interest expenses:
Compensation and benefits		125,949			127,969			127,592		114,875			136,249		122,035			131,372			7.7			496,385
Commissions and floor brokerage		24,172			22,867			22,977		24,479			23,775		25,242			25,252			0.0			94,495
Information processing and communications		44,249			41,601			42,152		47,278			44,569		47,263			49,049			3.8			175,280
Occupancy and related depreciation		18,228			16,803			16,879		17,926			17,056		17,209			16,805			(2.3	)		69,836
Business development expenses		8,296			6,881			8,848		11,086			8,409		7,823			9,801			25.3			35,111
Other		54,821			49,100			54,249		51,125			53,322		48,882			53,584			9.6			209,295

Total non-interest expenses		275,715			265,221			272,697		266,769			283,380		268,454			285,863			6.5			1,080,402

Income before income taxes		62,765			81,774			95,948		82,308			77,443		83,039			120,753			45.4			322,795
Income tax expense		15,791			19,721			25,218		19,499			19,405		29,423			30,960			5.2			80,229

Net income		46,974			62,053			70,730		62,809			58,038		53,616			89,793			67.5			242,566

Less: Net income attributable to noncontrolling interests		149			873			384		1,543			1,182		1,766			1,831			3.7			2,949

Net income attributable to NHI shareholders		46,825			61,180			70,346		61,266			56,856		51,850			87,962			69.6			239,617

	Yen																			% Change			Yen
Per share of common stock:
Basic-
Net income attributable to NHI shareholders per share		13.00			17.10			19.89		17.38			16.07		14.70			25.55			73.8			67.29

Diluted-
Net income attributable to NHI shareholders per share		12.71			16.68			19.44		17.00			15.77		14.45			25.12			73.8			65.65

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(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, 2016			September 30, 2016		December 31, 2016			March 31, 2017			June 30, 2017		September 30, 2017(A)		December 31, 2017(B)		(B-A)/(A)			March 31, 2017

Net revenue

Business segment information:
Retail		83,751			86,164		101,342			103,177			101,684		101,786		111,284		9.3			374,434
Asset Management		25,934			21,277		28,907			23,309			28,097		35,418		36,503		3.1			99,427
Wholesale		190,932			179,863		197,285			171,176			179,316		158,963		165,648		4.2			739,256

Subtotal		300,617			287,304		327,534			297,662			309,097		296,167		313,435		5.8			1,213,117
Other		48,411			52,111		28,691			54,251			51,707		52,610		89,023		69.2			183,464

Net revenue		349,028			339,415		356,225			351,913			360,804		348,777		402,458		15.4			1,396,581

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(10,548	)		7,580		12,420			(2,836	)		19		2,716		4,158		53.1			6,616

Net revenue		338,480			346,995		368,645			349,077			360,823		351,493		406,616		15.7			1,403,197


Non-interest expenses

Business segment information:
Retail		75,086			71,754		75,393			77,409			76,792		76,239		79,997		4.9			299,642
Asset Management		13,695			13,844		14,919			14,636			14,527		14,950		15,671		4.8			57,094
Wholesale		144,290			140,596		149,871			143,052			153,963		141,980		151,602		6.8			577,809

Subtotal		233,071			226,194		240,183			235,097			245,282		233,169		247,270		6.0			934,545
Other		42,644			39,027		32,514			31,672			38,098		35,285		38,593		9.4			145,857

Non-interest expenses		275,715			265,221		272,697			266,769			283,380		268,454		285,863		6.5			1,080,402

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—		—			—			—		—		—		—			—

Non-interest expenses		275,715			265,221		272,697			266,769			283,380		268,454		285,863		6.5			1,080,402


Income (loss) before income taxes

Business segment information:
Retail		8,665			14,410		25,949			25,768			24,892		25,547		31,287		22.5			74,792
Asset Management		12,239			7,433		13,988			8,673			13,570		20,468		20,832		1.8			42,333
Wholesale		46,642			39,267		47,414			28,124			25,353		16,983		14,046		(17.3	)		161,447

Subtotal		67,546			61,110		87,351			62,565			63,815		62,998		66,165		5.0			278,572
Other*		5,767			13,084		(3,823	)		22,579			13,609		17,325		50,430		191.1			37,607

Income (loss) before income taxes		73,313			74,194		83,528			85,144			77,424		80,323		116,595		45.2			316,179

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(10,548	)		7,580		12,420			(2,836	)		19		2,716		4,158		53.1			6,616

Income (loss) before income taxes		62,765			81,774		95,948			82,308			77,443		83,039		120,753		45.4			322,795

* 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																							For the year ended
	June 30, 2016			September 30, 2016			December 31, 2016			March 31, 2017			June 30, 2017			September 30, 2017(A)		December 31, 2017(B)			(B-A)/(A)			March 31, 2017
Net gain (loss) related to economic hedging transactions		11,974			(4,119	)		(15,948	)		814			(654	)		558		(8,019	)		—			(7,279	)
Realized gain (loss) on investments in equity securities held for operating purposes		582			74			445			(9	)		43			344		374			8.7			1,092
Equity in earnings of affiliates		1,058			10,945			10,960			9,379			7,022			8,408		7,801			(7.2	)		32,342
Corporate items		(4,306	)		(5,266	)		(769	)		3,902			154			1,597		(3,386	)		—			(6,439	)
Other		(3,541	)		11,450			1,489			8,493			7,044			6,418		53,660			736.1			17,891

Total		5,767			13,084			(3,823	)		22,579			13,609			17,325		50,430			191.1			37,607

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(3)

Changes in Tax Laws

On December 22, 2017, the Tax Cuts and Jobs Act (“the Act”) was enacted in the United States which significantly changes US income tax law, including reducing the US federal corporate income tax rate to 21%, broadening the US tax base, introducing a territorial tax system and one time repatriation tax on US entities for previously deferred earnings of non-US investees, allowing full expensing of certain property assets and imposing certain additional taxes on payments made from US entities to foreign related parties. As of December 31, 2017, Nomura has recognized a reduction of 2,800 million yen in deferred tax liabilities and deferred tax expense as a result of the reduction in the corporate income tax rate which is effective for US entities from January 1, 2018.

Nomura continues to evaluate and assess the other impacts of the Act on our US entities and may recognize further adjustments to deferred tax assets and liabilities, and therefore to income tax expense (benefit), during the quarter ending March 31, 2018 and subsequent periods depending on, among other things, finalizing of calculations for all impacted entities, changes in certain assumptions and interpretations made by Nomura, certain actions to be taken by Nomura in the future and whether additional guidance is released by the US tax authorities and other bodies.

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(4)

Other

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

http://www.nomuraholdings.com/company/group/nsc/pdf/2018_3q.pdf

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