Nomura Holdings Inc. posted a 27% year-over-year rise in net profit for the January–March quarter, thanks largely to the strong performance of its wholesale division. The Japanese banking giant announced on April 25 that it had achieved a net income of ¥72 billion for the fiscal fourth quarter, up from ¥56.8 billion in the same period a year ago. However, net income declined by 29% compared to the previous quarter, prompting a cautious stance moving forward amid global market volatility driven by uncertainty surrounding U.S. tariffs.

Nomura Expands Global Presence With New Acquisition:

As reported by S&P Global, speaking after the earnings release, Chief Financial Officer Takumi Kitamura stated, “The market outlook is now uncertain, putting investors on the sidelines.”

Nomura’s wholesale arm saw pretax profit surge 82% year-over-year to ¥37.5 billion during the quarter. In contrast, its investment management business recorded a 13% drop in pretax profit to ¥15.5 billion, and wealth management slipped by 4% to ¥37 billion. Full-year pretax profit from wholesale operations reached a 15-year peak, aided by improved revenue across business lines and regions, along with effective cost management.

As part of its strategy to stabilize revenue streams, Nomura is shifting focus toward growing its investment management division. On April 22, the company announced a $1.8 billion deal to acquire Macquarie’s U.S. and European public asset management units, including Macquarie Management Holdings. The transaction is expected to close by year-end and is aimed at boosting assets under management to generate steadier fee-based income.

Chief Executive Officer Kentaro Okuda emphasized Nomura’s global ambitions in the earnings statement, saying, “We will continue to intensify our global strategy, leveraging our Japan franchise and drive transformation to expand stable revenue to consistently improve ROE [return on equity] and enhance our corporate value.”

To further streamline operations, Nomura reduced staff costs by 9.7% compared to the previous year, lowering them to ¥172.3 billion in the fourth quarter. Additionally, the bank plans to initiate a share buyback program of up to 100 million shares, valued at up to ¥60 billion, starting May 15 and running through December 30.

RWS faces another tough quarter amid renovations and soft VIP demand:

Meanwhile, in Singapore, Genting Singapore’s Resorts World Sentosa (RWS) is grappling with operational challenges that are expected to impact its Q1 2025 performance. Nomura analysts project that RWS will report SG$650 million (US$494 million) in revenue and SG$250 million (US$190 million) in EBITDA for the quarter. These figures lag behind those of rival Marina Bay Sands (MBS), which continues to show strong recovery momentum.

RWS’s struggles stem from a 27% reduction in hotel room inventory due to ongoing renovations, leaving just 1,200 rooms available in Q1 compared to 1,540 earlier in 2024. This capacity squeeze is affecting the resort’s ability to attract premium mass market visitors, a key revenue segment. Nomura analysts also noted that VIP rolling chip volume at RWS has softened amid broader macroeconomic pressures and tighter credit conditions across Asia.

Adding to the headwinds, RWS’s hold percentage is expected to normalize downward from the 4.62% peak recorded in Q1 2024, which could further pressure margins. Nomura warned that, unless there is a positive surprise in the win rate, RWS’s first-quarter performance is likely to remain weak compared to the previous year.

Despite the near-term challenges, Genting Singapore is banking on its SG$4.5 billionRWS 2.0 expansion project to turn things around. New attractions, including Minion Land, the Singapore Oceanarium, and a luxury all-suite hotel replacing the Hard Rock Hotel, are expected to begin opening progressively in the second half of 2025.

However, Nomura cautions that the timeline could cause RWS to miss peak travel seasons, delaying any meaningful earnings boost until late 2025 or early 2026. The upgraded offerings are intended to draw more family and premium travelers, a group that spent 22% more per visit at Universal Studios Singapore in 2024.

While MBS leverages its completed renovations to capture a greater market share—estimated at 68% for Q1 2025—RWS remains in a transitional phase, striving to reposition itself for long-term success.