Nomura unexpectedly posted a loss for the first time in more than four years last quarter, as trading income and brokerage commissions dropped and it lost money abroad.
Bloomberg News reports that the net loss was $173m for the three months ended March 31, compared with profit of $737.2m a year earlier, the brokerage said in a statement Wednesday. Analysts expected the firm to post net income of $210.3m, according to the average of 10 estimates compiled by Bloomberg. The firm will spend as much as $179.8m buying back up to 0.9% of its shares, it said.
Nomura posted its sixth straight year of losses overseas, the report showed, underscoring why Chief Executive Officer Koji Nagai is unwinding an expansion outside of Japan. The firm expects to save about $600m to $700m of annual costs by restructuring its European equities business and cutting jobs there and in the Americas, and plans to return to profit abroad this fiscal year, according to people with knowledge of the matter.
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