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 July 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 – Three months ended June 30, 2018

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: July 26, 2018	By:	/s/ Hajime Ikeda
		Hajime Ikeda
		Senior Managing Director

Financial Summary For the Three Months Ended June 30, 2018 (U.S. GAAP)


Date:		July 26, 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:		Junko Tago
		Executive Director, Head of Investor Relations, Nomura Holdings, Inc.
		Tel: (Country Code 81) 3-5255-1000
		URL: https://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results


	(Rounded to nearest million)

	(Millions of yen, except per share data)

	For the three months ended June 30
	2017						2018
				% Change from June 30, 2016						% Change from June 30, 2017
Total revenue		467,926			11.8	%		430,985			(7.9%	)
Net revenue		360,823			6.6	%		271,997			(24.6%	)
Income before income taxes		77,443			23.4	%		13,643			(82.4%	)
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		56,856			21.4	%		5,223			(90.8%	)
Comprehensive income		56,022			—	%		44,271			(21.0%	)
Basic-Net income attributable to NHI shareholders per share (Yen)		16.07						1.54
Diluted-Net income attributable to NHI shareholders per share (Yen)		15.77						1.50
Return on shareholders’ equity-annualized		8.1	%					0.8	%

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

(2) Financial Position


	(Millions of yen, except per share data)

	At March 31			At June 30
	2018			2018
Total assets		40,343,947			42,828,467
Total equity		2,799,824			2,845,199
Total NHI shareholders’ equity		2,749,320			2,797,225
Total NHI shareholders’ equity as a percentage of total assets		6.8	%		6.5	%
Total NHI shareholders’ equity per share (Yen)		810.31			822.88

2. Cash Dividends


	(Yen amounts)

	For the year ended March 31
	2018		2019		2019 (Plan)
Dividends per share
Dividends record dates
At June 30		—		—		—
At September 30		9.00		—		Unconfirmed
At December 31		—		—		—
At March 31		11.00		—		Unconfirmed
For the year		20.00		—		Unconfirmed

Note: Nomura plans to forgo dividend distribution for Q3 of fiscal year 2019. Fiscal year 2019 Q2 and Q4 dividends are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2019”.

3. Earnings Forecasts for the year ending March 31, 2019

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 accompanying changes in 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 : Yes

Changes in accounting policies due to other than a) : Yes

(4) Number of shares issued (common stock)


	At March 31		At June 30
	2018		2018
Number of shares outstanding (including treasury stock)		3,643,562,601		3,643,562,601
Number of treasury stock		250,625,115		244,257,783

	For the three months ended June 30
	2017		2018
Average number of shares outstanding (year-to-date)		3,538,529,057		3,396,240,538

*This financial summary is not subject to certified public accountant’s or audit firm’s 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. Notes to the Summary Information			P. 5

(1) Changes in Accounting Policies			P. 5

3. 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

4. Supplementary Information			P.12

(1) Consolidated Statements of Income – Quarterly Comparatives			P.12
(2) Business Segment Information – Quarterly Comparatives			P.13
(3) Other			P.14

– 1 –

1.	Qualitative Information of the Quarterly Consolidated Results

(1)

Consolidated Operating Results

U.S. GAAP


	Billions of yen						% Change
	For the three months ended						(B-A)/(A)
	June 30, 2017 (A)			June 30, 2018 (B)			(B-A)/(A)
Net revenue		360.8			272.0			(24.6	)
Non-interest expenses		283.4			258.4			(8.8	)

Income (loss) before income taxes		77.4			13.6			(82.4	)
Income tax expense		19.4			6.9			(64.3	)

Net income (loss)		58.0			6.7			(88.4	)

Less: Net income (loss) attributable to noncontrolling interests		1.2			1.5			26.1

Net income (loss) attributable to NHI shareholders		56.9			5.2			(90.8	)

Return on shareholders’ equity-annualized		8.1	%		0.8	%		—

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 272.0 billion yen for the three months ended June 30, 2018, a decrease of 24.6% from the same period in the prior year. Non-interest expenses decreased by 8.8% from the same period in the prior year to 258.4 billion yen. Income before income taxes was 13.6 billion yen and net income attributable to NHI shareholders was 5.2 billion yen for the three months ended June 30, 2018.

Segment Information


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2017 (A)		June 30, 2018 (B)		(B-A)/(A)
Net revenue		360.8		270.0		(25.2	)
Non-interest expenses		283.4		258.4		(8.8	)

Income (loss) before income taxes		77.4		11.6		(85.0	)

In the above segment information totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the three months ended June 30, 2018 was 270.0 billion yen, a decrease of 25.2% from the same period in the prior year. Non-interest expenses decreased by 8.8% from the same period in the prior year to 258.4 billion yen. Income before income taxes was 11.6 billion yen for the three months ended June 30, 2018. 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 three months ended				(B-A)/(A)
	June 30, 2017 (A)		June 30, 2018 (B)		(B-A)/(A)
Net revenue		101.7		92.8		(8.7	)
Non-interest expenses		76.8		72.9		(5.1	)

Income (loss) before income taxes		24.9		19.9		(20.0	)

Net revenue decreased by 8.7% from the same period in the prior year to 92.8 billion yen, primarily due to a decrease in commissions received from distribution of investment trusts and brokerage. Non-interest expense decreased by 5.1% to 72.9 billion yen. As a result, income before income taxes decreased by 20.0% to 19.9 billion yen.

Operating Results of Asset Management


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2017 (A)		June 30, 2018 (B)		(B-A)/(A)
Net revenue		28.1		26.1		(7.1	)
Non-interest expenses		14.5		15.8		8.8

Income (loss) before income taxes		13.6		10.3		(24.2	)

Net revenue decreased by 7.1% from the same period in the prior year to 26.1 billion yen. Non-interest expense increased by 8.8% to 15.8 billion yen. As a result, income before income taxes decreased by 24.2% to 10.3 billion yen. Assets under management were 50.8 trillion yen as of June 30, 2018.

Operating Results of Wholesale


	Billions of yen					% Change
	For the three months ended					(B-A)/(A)
	June 30, 2017 (A)		June 30, 2018 (B)			(B-A)/(A)
Net revenue		179.3		137.3			(23.4	)
Non-interest expenses		154.0		144.7			(6.0	)

Income (loss) before income taxes		25.4		(7.4	)		—

Net revenue decreased by 23.4% from the same period in the prior year to 137.3 billion yen. Non-interest expense decreased by 6.0% to 144.7 billion yen. As a result, loss before income taxes was 7.4 billion yen.

– 3 –

Other Operating Results


	Billions of yen					% Change
	For the three months ended					(B-A)/(A)
	June 30, 2017 (A)		June 30, 2018 (B)			(B-A)/(A)
Net revenue		51.7		13.7			(73.4	)
Non-interest expenses		38.1		24.9			(34.6	)

Income (loss) before income taxes		13.6		(11.2	)		—

Net revenue was 13.7 billion yen. Loss before income taxes was 11.2 billion yen.

(2)

Consolidated Financial Position

Total assets as of June 30, 2018 were 42,828.5 billion yen, an increase of 2,484.5 billion yen compared to March 31, 2018, mainly due to the increase in Trading assets and Securities purchased under agreements to resell. Total liabilities as of June 30, 2018 were 39,983.3 billion yen, an increase of 2,439.1 billion yen compared to March 31, 2018, mainly due to the increase in Securities sold under agreements to repurchase. Total equity as of June 30, 2018 was 2,845.2 billion yen, an increase of 45.4 billion yen compared to March 31, 2018.

(3)

Consolidated Earnings Forecasts

– 4 –

2.	Notes to the Summary Information

(1)

Changes in Accounting Policies

Revenue recognition

On April 1, 2018, Nomura adopted Accounting Standards Update 2014-09 “Revenue from Contracts with Customers” and replaced existing revenue recognition guidance with a new prescriptive model. As a result of this adoption based on the modified retrospective application, the beginning balance of Retained earnings has been adjusted.

Changes of offsetting of derivatives

Nomura collects and remits cash margin between its clients and central clearing houses in its execution and clearing services of exchange-traded derivative transactions. Cash margin collected from clients and remitted to central clearing houses was reflected on Nomura’s consolidated balance sheets. However, with effect from April 1, 2018, revisiting nature of the transactions, Nomura has revised its accounting policy for when such balances are recognized on Nomura’s consolidated group balance sheet and as a result, certain cash margin amounts held on behalf of clients as well as an equivalent amount reflecting the obligation to return such amounts to clients are no longer recognized on the balance sheet if certain criteria are met. Nomura has restated previously reported amounts of Receivables from other than customers decreased by 237.0 billion yen and Payables to other than customers decreased by 237.0 billion yen, respectively, to conform to the current presentation.

Daily variation margin for certain derivative transactions traded in Japan was reflected on Nomura’s consolidated balance sheets. However, from April 1, 2018, Nomura changed its accounting policy as a result of amendment of the rules of a specific central clearing house and daily variation margin is now off-balanced. Nomura has restated previously report amounts of Trading assets decreased by 4.9 billion yen, Receivables from other than customers decreased by 5.5 billion yen and Trading liabilities decreased by 10.4 billion yen respectively to conform to the current presentation.

3.	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 25, 2018) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 25, 2018) for the year ended March 31, 2018.

– 5 –

(1)

Consolidated Balance Sheets


	Millions of yen
	March 31, 2018			June 30, 2018			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		2,354,639			2,463,050			108,411
Time deposits		315,445			283,608			(31,837	)
Deposits with stock exchanges and other segregated cash		288,962			313,141			24,179

Total cash and cash deposits		2,959,046			3,059,799			100,753

Loans and receivables:
Loans receivable		2,462,503			2,326,461			(136,042	)
Receivables from customers		442,343			562,382			120,039
Receivables from other than customers		973,867			593,551			(380,316	)
Allowance for doubtful accounts		(3,514	)		(3,719	)		(205	)

Total loans and receivables		3,875,199			3,478,675			(396,524	)

Collateralized agreements:
Securities purchased under agreements to resell		9,853,898			13,097,791			3,243,893
Securities borrowed		6,383,845			4,299,985			(2,083,860	)

Total collateralized agreements		16,237,743			17,397,776			1,160,033

Trading assets and private equity investments:
Trading assets*		14,962,690			16,579,439			1,616,749
Private equity investments		17,466			16,607			(859	)

Total trading assets and private equity investments		14,980,156			16,596,046			1,615,890

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥397,834 million as of March 31, 2018 and ¥412,793 million as of June 30, 2018)		338,984			337,683			(1,301	)
Non-trading debt securities*		485,891			474,422			(11,469	)
Investments in equity securities*		150,760			152,969			2,209
Investments in and advances to affiliated companies*		408,034			412,360			4,326
Other		908,134			918,737			10,603

Total other assets		2,291,803			2,296,171			4,368

Total assets		40,343,947			42,828,467			2,484,520

*	Including securities pledged as collateral

– 6 –


			Millions of yen
			March 31, 2018			June 30, 2018			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings				743,497			1,029,404			285,907
Payables and deposits:
Payables to customers				1,176,773			1,266,237			89,464
Payables to other than customers				1,239,540			1,724,750			485,210
Deposits received at banks				1,151,342			1,147,823			(3,519	)

Total payables and deposits				3,567,655			4,138,810			571,155

Collateralized financing:
Securities sold under agreements to repurchase				14,759,010			16,624,743			1,865,733
Securities loaned				1,524,363			1,415,907			(108,456	)
Other secured borrowings				413,621			419,162			5,541

Total collateralized financing				16,696,994			18,459,812			1,762,818

Trading liabilities				8,202,936			8,246,226			43,290
Other liabilities				950,534			779,688			(170,846	)
Long-term borrowings				7,382,507			7,329,328			(53,179	)

Total liabilities				37,544,123			39,983,268			2,439,145


Equity
NHI shareholders’ equity:
Common stock
Authorized	-	6,000,000,000 shares
Issued	-	3,643,562,601 shares as of March 31, 2018 and 3,643,562,601 shares as of June 30, 2018
Outstanding	-	3,392,937,486 shares as of March 31, 2018 and 3,399,304,818 shares as of June 30, 2018		594,493			594,493			—
Additional paid-in capital				675,280			676,312			1,032
Retained earnings				1,696,890			1,703,081			6,191
Accumulated other comprehensive income (loss)				(59,356	)		(22,547	)		36,809

Total NHI shareholders’ equity before treasury stock				2,907,307			2,951,339			44,032
Common stock held in treasury, at cost -
250,625,115 shares as of March 31, 2018 and
244,257,783 shares as of June 30, 2018				(157,987	)		(154,114	)		3,873

Total NHI shareholders’ equity				2,749,320			2,797,225			47,905

Noncontrolling interests				50,504			47,974			(2,530	)

Total equity				2,799,824			2,845,199			45,375

Total liabilities and equity				40,343,947			42,828,467			2,484,520

– 7 –

(2)

Consolidated Statements of Income


	Millions of yen				% Change
	For the three months ended
	June 30, 2017(A)		June 30, 2018(B)		(B-A)/(A)
Revenue:
Commissions		90,968		79,456		(12.7	)
Fees from investment banking		22,707		23,959		5.5
Asset management and portfolio service fees		58,343		62,981		7.9
Net gain on trading		120,467		71,887		(40.3	)
Gain on private equity investments		359		553		54.0
Interest and dividends		134,392		169,590		26.2
Gain on investments in equity securities		62		2,092		—
Other		40,628		20,467		(49.6	)

Total revenue		467,926		430,985		(7.9	)
Interest expense		107,103		158,988		48.4

Net revenue		360,823		271,997		(24.6	)

Non-interest expenses:
Compensation and benefits		136,249		127,700		(6.3	)
Commissions and floor brokerage		23,775		20,935		(11.9	)
Information processing and communications		44,569		40,961		(8.1	)
Occupancy and related depreciation		17,056		16,376		(4.0	)
Business development expenses		8,409		8,896		5.8
Other		53,322		43,486		(18.4	)

Total non-interest expenses		283,380		258,354		(8.8	)

Income before income taxes		77,443		13,643		(82.4	)
Income tax expense		19,405		6,930		(64.3	)

Net income		58,038		6,713		(88.4	)

Less: Net income attributable to noncontrolling interests		1,182		1,490		26.1

Net income attributable to NHI shareholders		56,856		5,223		(90.8	)

Per share of common stock:

	Yen				% Change
Basic-
Net income attributable to NHI shareholders per share		16.07		1.54		(90.4	)

Diluted-
Net income attributable to NHI shareholders per share		15.77		1.50		(90.5	)

– 8 –

(3)

Consolidated Statements of Comprehensive Income


	Millions of yen						% Change
	For the three months ended						(B-A)/(A)
	June 30, 2017(A)			June 30, 2018(B)			(B-A)/(A)
Net income		58,038			6,713			(88.4	)
Other comprehensive income (loss):
Cumulative translation adjustments:
Cumulative translation adjustments		3,086			32,356			948.5
Deferred income taxes		(321	)		252			—

Total		2,765			32,608			—

Defined benefit pension plans:
Pension liability adjustment		(1,709	)		1,046			—
Deferred income taxes		103			(326	)		—

Total		(1,606	)		720			—

Non-trading securities:
Net unrealized gain (loss) on non-trading securities		2,165			—			(100.0	)
Deferred income taxes		(474	)		—			—

Total		1,691			—			(100.0	)

Own Credit Adjustments:
Own Credit Adjustments:		(6,077	)		5,252			—
Deferred income taxes		1,211			(1,022	)		—

Total		(4,866	)		4,230			—

Total other comprehensive income (loss)		(2,016	)		37,558			—

Comprehensive income		56,022			44,271			(21.0	)
Less: Comprehensive income attributable to noncontrolling interests		1,730			2,239			29.4

Comprehensive income attributable to NHI shareholders		54,292			42,032			(22.6	)

(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 three months ended					(B-A)/(A)
	June 30, 2017 (A)		June 30, 2018 (B)			(B-A)/(A)
Net revenue

Business segment information:
Retail		101,684		92,833			(8.7	)
Asset Management		28,097		26,089			(7.1	)
Wholesale		179,316		137,290			(23.4	)

Subtotal		309,097		256,212			(17.1	)
Other		51,707		13,738			(73.4	)

Net revenue		360,804		269,950			(25.2	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		19		2,047			—

Net revenue		360,823		271,997			(24.6	)


Non-interest expenses

Business segment information:
Retail		76,792		72,909			(5.1	)
Asset Management		14,527		15,806			8.8
Wholesale		153,963		144,714			(6.0	)

Subtotal		245,282		233,429			(4.8	)
Other		38,098		24,925			(34.6	)

Non-interest expenses		283,380		258,354			(8.8	)

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

Non-interest expenses		283,380		258,354			(8.8	)


Income (loss) before income taxes

Business segment information:
Retail		24,892		19,924			(20.0	)
Asset Management		13,570		10,283			(24.2	)
Wholesale		25,353		(7,424	)		—

Subtotal		63,815		22,783			(64.3	)
Other*		13,609		(11,187	)		—

Income (loss) before income taxes		77,424		11,596			(85.0	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		19		2,047			—

Income (loss) before income taxes		77,443		13,643			(82.4	)

*	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 three months ended
	June 30, 2017 (A)			June 30, 2018 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		(654	)		(13,807	)		—
Realized gain (loss) on investments in equity securities held for operating purposes		43			45			4.7
Equity in earnings of affiliates		7,022			6,619			(5.7	)
Corporate items		154			(2,482	)		—
Other		7,044			(1,562	)		—

Total		13,609			(11,187	)		—

– 10 –

(6)

Significant Changes in Equity

Not applicable. For further details of the changes, please refer below.


	Millions of yen
	For the three months ended June 30, 2018
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		675,280
Stock-based compensation awards		1,032

Balance at end of period		676,312

Retained earnings
Balance at beginning of year		1,696,890
Cumulative effect of change in accounting principle(1)		1,564
Net income attributable to NHI shareholders		5,223
Gain (loss) on sales of treasury stock		(596	)

Balance at end of period		1,703,081

Accumulated other comprehensive income (loss)
Cumulative translation adjustments
Balance at beginning of year		(15,596	)
Net change during the period		31,859

Balance at end of period		16,263

Defined benefit pension plans
Balance at beginning of year		(47,837	)
Pension liability adjustment		720

Balance at end of period		(47,117	)

Own credit adjustments
Balance at beginning of year		4,077
Own credit adjustments		4,230

Balance at end of period		8,307

Balance at end of period		(22,547	)

Common stock held in treasury
Balance at beginning of year		(157,987	)
Repurchases of common stock		(2	)
Sale of common stock		0
Common stock issued to employees		3,875

Balance at end of period		(154,114	)

Total NHI shareholders’ equity

Balance at end of period		2,797,225

Noncontrolling interests
Balance at beginning of year		50,504
Net change during the period		(2,530	)

Balance at end of period		47,974

Total equity

Balance at end of period		2,845,199

(1)	In relation to Cumulative effect of change in accounting principle, please refer to section “2. Notes to the Summary Information (1) Changes in Accounting Policies.”

– 11 –

4.	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, 2018
	June 30, 2017		September 30, 2017			December 31, 2017			March 31, 2018(A)			June 30, 2018(B)		(B-A)/(A)			For the year ended March 31, 2018
Revenue:
Commissions		90,968		85,324			101,655			95,366			79,456		(16.7	)		373,313
Fees from investment banking		22,707		27,083			29,289			22,584			23,959		6.1			101,663
Asset management and portfolio service fees		58,343		61,212			63,767			62,294			62,981		1.1			245,616
Net gain on trading		120,467		88,391			87,725			146,302			71,887		(50.9	)		442,885
Gain (loss) on private equity investments		359		(330	)		(2,381	)		1,483			553		(62.7	)		(869	)
Interest and dividends		134,392		141,612			161,445			148,226			169,590		14.4			585,675
Gain (loss) on investments in equity securities		62		3,060			4,532			(4,971	)		2,092		—			2,683
Other		40,628		56,037			84,597			39,930			20,467		(48.7	)		221,192

Total revenue		467,926		462,389			530,629			511,214			430,985		(15.7	)		1,972,158
Interest expense		107,103		110,896			124,013			133,177			158,988		19.4			475,189

Net revenue		360,823		351,493			406,616			378,037			271,997		(28.1	)		1,496,969

Non-interest expenses:
Compensation and benefits		136,249		122,035			131,372			140,985			127,700		(9.4	)		530,641
Commissions and floor brokerage		23,775		25,242			25,252			25,599			20,935		(18.2	)		99,868
Information processing and communications		44,569		47,263			49,049			43,900			40,961		(6.7	)		184,781
Occupancy and related depreciation		17,056		17,209			16,805			16,825			16,376		(2.7	)		67,895
Business development expenses		8,409		7,823			9,801			10,729			8,896		(17.1	)		36,762
Other		53,322		48,882			53,584			93,076			43,486		(53.3	)		248,864

Total non-interest expenses		283,380		268,454			285,863			331,114			258,354		(22.0	)		1,168,811

Income before income taxes		77,443		83,039			120,753			46,923			13,643		(70.9	)		328,158
Income tax expense		19,405		29,423			30,960			24,078			6,930		(71.2	)		103,866

Net income		58,038		53,616			89,793			22,845			6,713		(70.6	)		224,292

Less: Net income attributable to noncontrolling interests		1,182		1,766			1,831			170			1,490		776.5			4,949

Net income attributable to NHI shareholders		56,856		51,850			87,962			22,675			5,223		(77.0	)		219,343


	Yen													% Change			Yen
Per share of common stock:
Basic-
Net income attributable to NHI shareholders per share		16.07		14.70			25.55			6.68			1.54		(76.9	)		63.13

Diluted-
Net income attributable to NHI shareholders per share		15.77		14.45			25.12			6.56			1.50		(77.1	)		61.88

– 12 –

(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, 2017		September 30, 2017		December 31, 2017		March 31, 2018(A)			June 30, 2018(B)			(B-A)/(A)			March 31, 2018

Net revenue

Business segment information:
Retail		101,684		101,786		111,284		98,154			92,833			(5.4	)		412,908
Asset Management		28,097		35,418		36,503		27,319			26,089			(4.5	)		127,337
Wholesale		179,316		158,963		165,648		211,406			137,290			(35.1	)		715,333

Subtotal		309,097		296,167		313,435		336,879			256,212			(23.9	)		1,255,578
Other		51,707		52,610		89,023		46,153			13,738			(70.2	)		239,493

Net revenue		360,804		348,777		402,458		383,032			269,950			(29.5	)		1,495,071

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		19		2,716		4,158		(4,995	)		2,047			—			1,898

Net revenue		360,823		351,493		406,616		378,037			271,997			(28.1	)		1,496,969


Non-interest expenses

Business segment information:
Retail		76,792		76,239		79,997		76,743			72,909			(5.0	)		309,771
Asset Management		14,527		14,950		15,671		16,019			15,806			(1.3	)		61,167
Wholesale		153,963		141,980		151,602		167,200			144,714			(13.4	)		614,745

Subtotal		245,282		233,169		247,270		259,962			233,429			(10.2	)		985,683
Other		38,098		35,285		38,593		71,152			24,925			(65.0	)		183,128

Non-interest expenses		283,380		268,454		285,863		331,114			258,354			(22.0	)		1,168,811

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

Non-interest expenses		283,380		268,454		285,863		331,114			258,354			(22.0	)		1,168,811


Income (loss) before income taxes

Business segment information:
Retail		24,892		25,547		31,287		21,411			19,924			(6.9	)		103,137
Asset Management		13,570		20,468		20,832		11,300			10,283			(9.0	)		66,170
Wholesale		25,353		16,983		14,046		44,206			(7,424	)		—			100,588

Subtotal		63,815		62,998		66,165		76,917			22,783			(70.4	)		269,895
Other*		13,609		17,325		50,430		(24,999	)		(11,187	)		—			56,365

Income (loss) before income taxes		77,424		80,323		116,595		51,918			11,596			(77.7	)		326,260

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		19		2,716		4,158		(4,995	)		2,047			—			1,898

Income (loss) before income taxes		77,443		83,039		120,753		46,923			13,643			(70.9	)		328,158

*	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														(B-A)/(A)			For the year ended March 31, 2018
	June 30, 2017			September 30, 2017		December 31, 2017			March 31, 2018(A)			June 30, 2018(B)			(B-A)/(A)			For the year ended March 31, 2018
Net gain (loss) related to economic hedging transactions		(654	)		558		(8,019	)		1,654			(13,807	)		—			(6,461	)
Realized gain (loss) on investments in equity securities held for operating purposes		43			344		374			24			45			87.5			785
Equity in earnings of affiliates		7,022			8,408		7,801			11,017			6,619			(39.9	)		34,248
Corporate items		154			1,597		(3,386	)		(40,249	)		(2,482	)		—			(41,884	)
Other		7,044			6,418		53,660			2,555			(1,562	)		—			69,677

Total		13,609			17,325		50,430			(24,999	)		(11,187	)		—			56,365

– 13 –

(3)

Other

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

https://www.nomuraholdings.com/company/group/nsc/pdf/2019_1q.pdf

– 14 –