[Company analysis] Nomura Holdings, Inc. (野村ホールディングス)

「Nomura Holdings, Inc. (野村ホールディングス)」is a holding company which owns「Nomura Securities Co., Ltd.(野村証券)」as its core company. Surpassing「Daiwa Securities Group(大和証券グループ本社)」, this company is on the top position in the Japanese securities industry. Historically, they have expanded their business through bond transactions. However, after the oil shock, they changed into a multinational corporation with strong financial power. The number of consolidated employees is approximately 27,864.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nomura Holdings, Inc.
Company name (Japanese)	野村ホールディングス
Date of establishment	Friday, December 25, 1925
Headquarters location	〒103-8645 東京都中央区日本橋1-9-1
Capital	594,493
Consolidated sales	1,116,770
Consolidated operating profit	(100,442)
Consolidated total assets	40,969,439
Consolidated capital	2,680,793
Capital adequacy ratio	6.5%
Consolidated number of employees	27,864

 

 

 

2. Summary and Features

 
The predecessor of「Nomura Securities(野村証券)」, a core subsidiary of「Nomura Holdings(野村ホールディングス)」, was the securities division of「Osaka Nomura Bank(大阪野村銀行)」. In 1925,「Nomura Securities」was established by being indepent from「Osaka Nomura Bank」. After its establishment, this company grew rapidly　 in 1920s, has grown into one of the largest securities companies who is in charge of issuing Japanese government bonds due to its business in Manchuria. In 1941,「Nomura Securities」was granted a licence for investment trust business first time in Japan, and cooperated in the procurement of war costs for World War II.

In 1961,「Nomura Securities」was listed on the Tokyo Stock Exchange, Osaka Stock Exchange, and Nagoya Stock Exchange, respectively. And in 1965, they spun off their research division, in order to establish the current「Nomura Research Institute(野村総合研究所)」. After the oil shock, this company started to invest foreign equity funds and set up branch offices in Amsterdam and Frankfurt. From this time,「Nomura Securities」began to transform into a multinational company. 

Even though「Nomura Securities」came from「Osaka Nomura Bank」, this company has strong relationship with 「former Sanwa Bank(旧三和銀行)」or「Nippon Life Insurance Company(日本生命保険相互会社)」. For example,「Nomura Securities」and「Nippon Life Insurance Company」were engaged in establishment of「東神開発(Toshin Development Co., Ltd.)」which is now a wholly owned subsidiary to「Takashimaya(高島屋)」. In 2008, 「Nomura Holdings」purchased Europe and the Middle East business from「Lehman Brothers Holdings」which was bankrupted due to the subprime mortgage crisis, and inherited the shadow banking system of them.

A characteristic of「Nomura Securities」is its unique individualism and meritocracy. Individual employees are evaluated as having extremely high sales ability, and it contributes to the B2C performance of「Nomura Securities」. In other words, they are famous for their "Performance-oriented corporate culture" by enhancing the performance of each individual, it is possible to strengthen the entire company. This kind of corporate culture is regarded as the driving force of best securities company in Japan.

 

 

 

3. Major Business

 

■ Securities business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated revenue(After deduction of financial expenses)		1,403,197	1,496,969	1,116,770
Net income attributable to shareholders		239,617	219,343	-100,442
Consolidated total assets		42,852,078	40,591,329	40,969,439
Consolidated net assets		2,843,791	2,799,824	2,680,793
Breakdown of revenue	B2C securities business	374,434	412,908	339,480
	Asset Management business	99,427	127,337	97,845
	B2B securities business	739,256	715,333	555,388
	Others	183,464	239,493	131,261
	Adjustments	6,616	1,898	-7,204