Nomura profit jumps 39% on trading surge, record Japan M&A fees

Nomura Holdings reported a 39 per cent increase in first-quarter net income, reaching 145.6 billion yen. Japan's largest investment bank credited the surge to a 43 per cent jump in global markets revenue and record first-quarter investment banking fees. The results echo the strong trading performances recently posted by major Wall Street institutions.

The trading uplift was driven by distinct macroeconomic forces. Geopolitical instability in the Middle East continues to disrupt global energy flows and supply chains, generating client activity. Simultaneously, investor enthusiasm for artificial intelligence pushed the Nikkei 225 to a record high in June, further boosting volumes. This follows a similarly strong first quarter last year, which was driven by market upheaval surrounding U.S. President Donald Trump's sweeping tariffs.

Beyond short-term market volatility, the results point to a deeper structural shift in Japan's economy. Investment banking revenue hit 50.4 billion yen, a first-quarter record, as the country's slow emergence from deflation spurs demand for financing and mergers. Chief Financial Officer Hiroyuki Moriuchi noted the financing pipeline is "much stronger than last year," though he cautioned that geopolitical uncertainty risked delayed some transactions.

The deflationary thaw is also reshaping the retail investment landscape. As inflation erodes traditional savings, Japanese retail investors are actively seeking higher-yielding assets. This shift lifted pretax income in Nomura's wealth management arm—which dominates the Japanese high-net-worth sector—by 83 per cent to 71.1 billion yen.

For market participants, the quarterly update underscores a broader narrative playing out across Japanese finance. Domestic companies are increasingly willing to deploy capital, ending decades of defensive balance sheet management. Nomura sits at the centre of this transition, capturing fees from both the initial corporate financing rounds and the subsequent wealth generation.

For investors, the results validate the bank's years-long strategic pivot. Nomura has intentionally built out stable, fee-based revenue streams to insulate the business from unpredictable market swings. While global trading provided an immediate top-line boost, the parallel growth in corporate finance and wealth management suggests Nomura is structurally positioned to capitalize on Japan's new inflationary era.