TOKYO (Reuters) -Nomura Holdings Inc, Japan’s biggest brokerage and investment bank, said second-quarter net profit plunged due to a one-off loss from a transaction completed more than a decade ago.
July-September profit came in at 3.2 billion yen ($28.3 million). That compares with 67.6 billion yen a year earlier and an average of 64.9 billion yen from two analysts compiled by Refinitiv.
Nomura said it booked a charge of about 39 billion yen in the quarter related to “legacy transactions in the Americas from before the global financial crisis in 2007 and 2008.”
Pretax income for Nomura’s wholesale business, which houses its trading and investment banking division, dropped to 25 billion yen from 65.5 billion yen for the same period a year earlier.
In addition to the charge for the legacy transaction, it also saw a weaker performance by its global markets trading business – a large portion of which is fixed income trading – after a buoyant year in 2020 due to high market volatility driven by the COVID-19 pandemic.
($1 = 113.6400 yen)
(Reporting by Makiko Yamazaki; Editing by Edwina Gibbs)
