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Nomura posts fiscal Q4 net loss as decline in share prices impacts revenue

NomuraHoldings Inc. posted a net loss for the fiscal fourth quarter endedMarch 31 as the group's unrealized loss on securities holdings increased due toa decline in share prices.

The company posted a fiscal fourth-quarter consolidated netloss of ¥19.15 billion, or ¥5.33 per share, compared to net income of ¥82.01billion, or ¥22.08 per share, in the prior-year quarter.

The company said its retail, asset management and wholesalesegments posted a total loss before income taxes of ¥4.9 billion in the quarteras the business environment deteriorated from January due share prices falling,a stronger yen and a decline in liquidity in fixed income markets. The declinein share prices also resulted in the group reporting higher unrealized loss onsecurities holdings of around ¥43.2 billion.

Commissions in the first quarter declined to ¥87.79 billionfrom ¥123.73 billion, while fees from investment banking rose to ¥28.95 billionfrom ¥25.82 billion. Asset management and portfolio service fees fell to ¥53.08billion from ¥54.30 billion in the prior-year quarter. Net gain on tradingdeclined year over year to ¥61.54 billion from ¥134.30 billion.

Gain on private equity investments declined to ¥3.31 billionfrom ¥5.47 billion in the quarter. The group posted a loss on investments inequity securities of ¥23.50 billion, compared to gain of ¥8.38 billion in theprior-year quarter.

Total revenue for the quarter declined to ¥362.22 billionfrom ¥510.01 billion, while net revenue fell to ¥280.15 billion from ¥434.51billion.

For the fiscal full year, Nomura reported a 41.5%year-over-year decline in net income attributable to shareholders to ¥131.55billion, or ¥35.52 per share, from ¥224.79 billion, or ¥60.03 per share.

The company said its group income before income taxes forthe year was weighed down by a slower performance in three business segments,unrealized loss on security holdings and the impact of settlement in legalproceedings of around ¥35 billion.

Total revenue for the year fell to ¥1.723 trillion from¥1.931 trillion, while net revenue decreased to ¥1.396 trillion from ¥1.604trillion.

Nomura declared a final dividend for the fiscal year of ¥3per share, down from the prior-year's final dividend of ¥13 per share. Thecompany's total dividend for the year, including an interim dividend of ¥10 pershare, came to ¥13 per share, down from ¥19 per share for the prior year.

In addition, the group's board approved a share buybackprogram, which will run from May 18 to July 22. The program will have an upperlimit of 35 million shares, or 0.9% of the company's outstanding shares. Theupper limit of the aggregate amount of the repurchase price will be ¥20 billionand the shares will be purchased on the stock exchange via a trust bank.

As of April 26, US$1was equivalent to ¥111.19.