Japan's Nomura Q1 profit more than doubles on deeper cost cuts

Credit: REUTERS/© Toru Hanai / Reuters

Nomura Holdings Inc, Japan's biggest brokerage and investment bank, said on Wednesday its first-quarter net profit more than doubled on the year as it continues to slash costs in its wholesale business.

Q1 net profit Y142.5 bln vs Y55.8 bln year prior

Wholesale division posts Y87.9 bln pretax profit vs Y20 bln prior year

Adds details on results, cost cuts and background

TOKYO, July 29 (Reuters) - Nomura Holdings Inc 8604.T, Japan's biggest brokerage and investment bank, said on Wednesday its first-quarter net profit more than doubled on the year as it continues to slash costs in its wholesale business.

April-June profit came in at 142.5 billion yen ($1.36 billion) versus 55.8 billion yen a year earlier. The results compared with the 80.3 billion yen average of two analyst estimates compiled by Refinitiv.

Pretax income for the wholesale segment, which serves corporations and institutional investors, came in at 87.9 billion yen in the quarter, compared with a pretax income of 20 billion yen last year.

"As a result of proceeding cost-cutting measures, wholesale business reported a drastic increase in pretax income," the company said in a statement.

Nomura said last year that it was aiming for about 140 billion yen in cost cuts by March 2022.

While the firm had suspended over-the-counter business at all branches for a month until mid-May, retail division posted 15.1 billion yen of pretax income, or a 86% increase year on-year.

($1 = 105.0400 yen)

(Reporting by Takashi Umekawa, Editing by Shri Navaratnam and Sherry Jacob-Phillips)

((Takashi.Umekawa@thomsonreuters.com;))

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