Nomura Holdings Inc., the Japanese asset management group, has missed its objective of returning to profits outside Japan last year, people with knowledge of the matter commented.
The pretax loss in Europe, the Americas and Asia for the year ended March was due to a one-time event and narrowed from 24.7 billion yen ($207 million) a year earlier, said the people, without identifying the event. Nomura will keep its target to earn 50 billion yen from overseas this year, the people said, asking not to be named before results due Thursday.
Shares of Nomura fell, erasing earlier gains. While Japan’s largest brokerage has been embroiled in lawsuits overseas, it has benefited from a surging Japanese stock market that’s bolstered earnings at home. Net income for Nomura as a whole rose in the three months through March from 61.3 billion yen a year earlier, according to the people.
“Although it looks negative to see that the company missed the target, I get the sense that the losses abroad are under control and won’t be permanent,” said Mitsushige Akino, an executive officer at Ichiyoshi Asset Management Co. in Tokyo. “At the same time, the restructuring has been too slow and they’re still lacking growth drivers overseas.”