Nomura Holdings Sees Biggest Quarterly Loss in Over 10 Years
Nomura Holdings - Japan’s largest brokerage and investment bank, has reported a $2.3 billion hit from the collapse of the US investment fund - Archegos, logging their biggest quarterly net loss since the 2008 global financial crisis.
Nomura said that while it expects to book a further $570 million in charges related to Archegos this financial year and would be increasing its risk controls, it saw the situation as an isolated incident.
"We are not planning to make major changes to our US and global business strategy”, Nomura CEO - Kentaro Okuda, commented.
The company’s January-March net loss came in at 155.4 billion yen, comparing to a 34.4 billion yen loss a year earlier.
It’s wise to note that before Archegos failed to meet margin calls on heavily leveraged stock bets last month, Nomura was on the path to record annual profit, boosted by a buoyant US trading business. Instead, it posted net income of 153.1 billion yen, down 29% from the previous year. Most analysts had expected a profit of between 160 billion and 225 billion yen.
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