Edgar Filing: NOMURA HOLDINGS INC

Form 6-K

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Commission File Number: 1-15270

For the month of October 2017

NOMURA HOLDINGS, INC.

(Translation of registrant’s name into English)

9-1, Nihonbashi 1-chome

Chuo-ku, Tokyo 103-8645

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Information furnished on this form:

EXHIBIT


Exhibit Number

1.		Financial Summary – Six months ended September 30, 2017

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	NOMURA HOLDINGS, INC.

Date: October 30, 2017	By:	/s/ Hajime Ikeda
		Hajime Ikeda
		Senior Managing Director

Financial Summary For the Six Months Ended September 30, 2017 (U.S. GAAP)


Date:		October 30, 2017
Company name (code number):		Nomura Holdings, Inc. (8604)
Stock exchange listings:		(In Japan) Tokyo, Nagoya (Overseas) New York, Singapore
Representative:		Koji Nagai President and Group CEO, Nomura Holdings, Inc.
For inquiries:		Michio Okazaki Managing Director, Head of Management Accounting and Investor Relations, Nomura Holdings, Inc. Tel: (Country Code 81) 3-5255-1000 URL: http://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results


	(Rounded to nearest million)

	For the six months ended September 30
	2016						2017
	(Millions of yen, except per share data)
				% Change from September 30, 2015						% Change from September 30, 2016
Total revenue		844,521			(8.8	%)		930,315			10.2	%
Net revenue		685,475			(9.9	%)		712,316			3.9	%
Income before income taxes		144,539			14.8	%		160,482			11.0	%
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		108,005			(6.3	%)		108,706			0.6	%
Comprehensive income		(3,529	)		—	%		113,821			—	%
Basic-Net income attributable to NHI shareholders per share (Yen)		30.10						30.79
Diluted-Net income attributable to NHI shareholders per share (Yen)		29.39						30.20
Return on shareholders’ equity-annualized		8.1	%					7.7	%

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI shareholders to Total NHI shareholders’ equity.

(2) Financial Position


	At March 31			At September 30
	2017			2017
	(Millions of yen, except per share data)
Total assets		42,852,078			44,105,700
Total equity		2,843,791			2,892,407
Total NHI shareholders’ equity		2,789,916			2,836,212
Total NHI shareholders’ equity as a percentage of total assets		6.5	%		6.4	%
Total NHI shareholders’ equity per share (Yen)		790.70			813.57

2. Cash Dividends


	For the year ended March 31
	2017		2018		2018 (Plan)
	(Yen amounts)
Dividends per share
Dividends record dates
At June 30		—		—		—
At September 30		9.00		9.00		—
At December 31		—		—		—
At March 31		11.00		—		Unconfirmed
For the year		20.00		—		Unconfirmed

Note: Nomura plans to forgo dividend distribution for Q3 of fiscal year 2018. Fiscal year 2018 Q4 dividend amount are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2018”.

3. Earnings Forecasts for the year ending March 31, 2018

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings forecasts.

Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in Specified Subsidiaries accompanying changes in scope of consolidation.)

(2) Adoption of the simplified and particular accounting treatments: None

(3) Changes in accounting policies

Changes in accounting policies due to amendments to the accounting standards : None

Changes in accounting policies due to other than a) : None

(4) Number of shares issued (common stock)


	At March 31		At September 30
	2017		2017
Number of shares outstanding (including treasury stock)		3,822,562,601		3,822,562,601
Number of treasury stock		294,133,150		336,420,504

	For the six months ended September 30
	2016		2017
Average number of shares outstanding (year-to-date)		3,588,288,755		3,530,324,525

*This quarterly report is not subject to quarterly review

Table of Contents for the Accompanying Materials


1. Qualitative Information of the Quarterly Consolidated Results			P. 2

(1) Consolidated Operating Results			P. 2
(2) Consolidated Financial Position			P. 4
(3) Consolidated Earnings Forecasts			P. 4

2. Quarterly Consolidated Financial Statements			P. 5

(1) Consolidated Balance Sheets			P. 6
(2) Consolidated Statements of Income			P. 8
(3) Consolidated Statements of Comprehensive Income			P. 9
(4) Note with respect to the Assumption as a Going Concern			P. 9
(5) Segment Information – Operating Segment			P.10
(6) Significant Changes in Equity			P.11

3. Supplementary Information			P.12

(1) Consolidated Statements of Income – Quarterly Comparatives			P.12
(2) Business Segment Information – Quarterly Comparatives			P.13
(3) Other			P.14

– 1 –

1.	Qualitative Information of the Quarterly Consolidated Results

(1)

Consolidated Operating Results

U.S. GAAP


	Billions of yen						% Change
	For the six months ended						(B-A)/(A)
	September 30, 2016 (A)			September 30, 2017 (B)			(B-A)/(A)
Net revenue		685.5			712.3		3.9
Non-interest expenses		540.9			551.8		2.0

Income (loss) before income taxes		144.5			160.5		11.0
Income tax expense		35.5			48.8		37.5

Net income (loss)		109.0			111.7		2.4

Less: Net income (loss) attributable to noncontrolling interests		1.0			2.9		188.5

Net income (loss) attributable to NHI shareholders		108.0			108.7		0.6

Return on shareholders’ equity-annualized		8.1	%		7.7	%	—

Note: Return on shareholders’ equity is a ratio of Net income (loss) attributable to NHI shareholders to Total NHI shareholders’ equity. Nomura Holdings, Inc. and its consolidated entities (collectively, “Nomura”) reported net revenue of 712.3 billion yen for the six months ended September 30, 2017, an increase of 3.9% from the same period in the prior year. Non-interest expenses increased by 2.0% from the same period in the prior year to 551.8 billion yen. Income before income taxes was 160.5 billion yen and net income attributable to NHI shareholders was 108.7 billion yen for the six months ended September 30, 2017. Segment Information
	Billions of yen						% Change
	For the six months ended						(B-A)/(A)
	September 30, 2016 (A)			September 30, 2017 (B)			(B-A)/(A)
Net revenue		688.4			709.6		3.1
Non-interest expenses		540.9			551.8		2.0

Income (loss) before income taxes		147.5			157.7		6.9

In the above segment information totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the six months ended September 30, 2017 was 709.6 billion yen, an increase of 3.1% from the same period in the prior year. Non-interest expenses increased by 2.0% from the same period in the prior year to 551.8 billion yen. Income before income taxes was 157.7 billion yen for the six months ended September 30, 2017. Please refer to page 10 for further details of the differences between U.S. GAAP and business segment amounts.

– 2 –

<Business Segment Results>

Operating Results of Retail


	Billions of yen				% Change
	For the six months ended				(B-A)/(A)
	September 30, 2016 (A)		September 30, 2017 (B)		(B-A)/(A)
Net revenue		169.9		203.5	19.7
Non-interest expenses		146.8		153.0	4.2

Income (loss) before income taxes		23.1		50.4	118.6

Net revenue increased by 19.7% from the same period in the prior year to 203.5 billion yen, primarily due to increasing commissions from distribution of brokerage and investment trusts. Non-interest expense increased by 4.2% to 153.0 billion yen. As a result, income before income taxes increased by 118.6% to 50.4 billion yen.

Operating Results of Asset Management


	Billions of yen				% Change
	For the six months ended				(B-A)/(A)
	September 30, 2016 (A)		September 30, 2017 (B)		(B-A)/(A)
Net revenue		47.2		63.5	34.5
Non-interest expenses		27.5		29.5	7.0

Income (loss) before income taxes		19.7		34.0	73.0

Net revenue increased by 34.5% from the same period in the prior year to 63.5 billion yen. Non-interest expense increased by 7.0% to 29.5 billion yen. As a result, income before income taxes increased by 73.0% to 34.0 billion yen. Assets under management were 48.0 trillion yen as of September 30, 2017.

Operating Results of Wholesale


	Billions of yen				% Change
	For the six months ended				(B-A)/(A)
	September 30, 2016 (A)		September 30, 2017 (B)		(B-A)/(A)
Net revenue		370.8		338.3	(8.8)
Non-interest expenses		284.9		295.9	3.9

Income (loss) before income taxes		85.9		42.3	(50.7)

Net revenue decreased by 8.8% from the same period in the prior year to 338.3 billion yen. Non-interest expense increased by 3.9% to 295.9 billion yen. As a result, income before income taxes decreased by 50.7% from the same period in the prior year to 42.3 billion yen.

– 3 –

Other Operating Results


	Billions of yen				% Change
	For the six months ended				(B-A)/(A)
	September 30, 2016 (A)		September 30, 2017 (B)		(B-A)/(A)
Net revenue		100.5		104.3	3.8
Non-interest expenses		81.7		73.4	(10.1)

Income (loss) before income taxes		18.9		30.9	64.1

Net revenue was 104.3 billion yen. Income before income taxes was 30.9 billion yen.

(2)

Consolidated Financial Position

Total assets as of September 30, 2017 were 44,105.7 billion yen, an increase of 1,253.6 billion yen compared to March 31, 2017, mainly due to the increase in Trading assets. Total liabilities as of September 30, 2017 were 41,213.3 billion yen, an increase of 1,205.0 billion yen compared to March 31, 2017, mainly due to the increase in Trading liabilities and Long-term borrowings. Total equity as of September 30, 2017 was 2,892.4 billion yen, an increase of 48.6 billion yen compared to March 31, 2017.

(3)

Consolidated Earnings Forecasts

– 4 –

2.	Quarterly Consolidated Financial Statements

The quarterly consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes to the consolidated financial statements of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 26, 2017) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 26, 2017) for the year ended March 31, 2017.

– 5 –

(1)

Consolidated Balance Sheets


	Millions of yen
	March 31, 2017			September 30, 2017			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		2,536,840			2,667,593			130,753
Time deposits		207,792			222,998			15,206
Deposits with stock exchanges and other segregated cash		227,456			250,597			23,141

Total cash and cash deposits		2,972,088			3,141,188			169,100

Loans and receivables:
Loans receivable		1,875,828			1,971,887			96,059
Receivables from customers		148,378			210,637			62,259
Receivables from other than customers		1,076,773			996,012			(80,761	)
Allowance for doubtful accounts		(3,551	)		(3,786	)		(235	)

Total loans and receivables		3,097,428			3,174,750			77,322

Collateralized agreements:
Securities purchased under agreements to resell		11,456,591			12,751,325			1,294,734
Securities borrowed		7,273,234			5,827,070			(1,446,164	)

Total collateralized agreements		18,729,825			18,578,395			(151,430	)

Trading assets and private equity investments:
Trading assets*		15,165,310			16,354,297			1,188,987
Private equity investments		27,054			19,085			(7,969	)

Total trading assets and private equity investments		15,192,364			16,373,382			1,181,018

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥445,000 million as of March 31, 2017 and ¥472,229 million as of September 30, 2017)		349,696			335,189			(14,507	)
Non-trading debt securities*		775,025			726,993			(48,032	)
Investments in equity securities*		146,730			151,589			4,859
Investments in and advances to affiliated companies*		420,116			397,872			(22,244	)
Other		1,168,806			1,226,342			57,536

Total other assets		2,860,373			2,837,985			(22,388	)

Total assets		42,852,078			44,105,700			1,253,622

*	Including securities pledged as collateral

– 6 –


			Millions of yen
			March 31, 2017			September 30, 2017			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings				543,049			632,137			89,088
Payables and deposits:
Payables to customers				1,005,670			1,144,583			138,913
Payables to other than customers				1,569,922			1,571,234			1,312
Deposits received at banks				1,132,843			1,210,816			77,973

Total payables and deposits				3,708,435			3,926,633			218,198

Collateralized financing:
Securities sold under agreements to repurchase				17,095,898			17,236,437			140,539
Securities loaned				1,627,124			1,584,949			(42,175	)
Other secured borrowings				338,069			378,474			40,405

Total collateralized financing				19,061,091			19,199,860			138,769

Trading liabilities				8,191,794			8,543,122			351,328
Other liabilities				1,308,510			1,255,774			(52,736	)
Long-term borrowings				7,195,408			7,655,767			460,359

Total liabilities				40,008,287			41,213,293			1,205,006


Equity
NHI shareholders’ equity:
Common stock
Authorized	-	6,000,000,000 shares
Issued	-	3,822,562,601 shares as of March 31, 2017 and 3,822,562,601 shares as of September 30, 2017
Outstanding	-	3,528,429,451 shares as of March 31, 2017 and 3,486,142,097 shares as of September 30, 2017		594,493			594,493			—
Additional paid-in capital				681,329			677,446			(3,883	)
Retained earnings				1,663,234			1,736,867			73,633
Accumulated other comprehensive income				33,652			35,585			1,933

Total NHI shareholders’ equity before treasury stock				2,972,708			3,044,391			71,683
Common stock held in treasury, at cost -
294,133,150 shares as of March 31, 2017 and
336,420,504 shares as of September 30, 2017				(182,792	)		(208,179	)		(25,387	)

Total NHI shareholders’ equity				2,789,916			2,836,212			46,296

Noncontrolling interests				53,875			56,195			2,320

Total equity				2,843,791			2,892,407			48,616

Total liabilities and equity				42,852,078			44,105,700			1,253,622

– 7 –

(2)

Consolidated Statements of Income


	Millions of yen					% Change
	For the six months ended					(B-A)/(A)
	September 30, 2016(A)			September 30, 2017(B)		(B-A)/(A)
Revenue:
Commissions		150,895			176,292		16.8
Fees from investment banking		40,666			49,790		22.4
Asset management and portfolio service fees		104,752			119,555		14.1
Net gain on trading		258,901			208,858		(19.3	)
Gain (loss) on private equity investments		(433	)		29		—
Interest and dividends		215,414			276,004		28.1
Gain (loss) on investments in equity securities		(2,312	)		3,122		—
Other		76,638			96,665		26.1

Total revenue		844,521			930,315		10.2
Interest expense		159,046			217,999		37.1

Net revenue		685,475			712,316		3.9

Non-interest expenses:
Compensation and benefits		253,918			258,284		1.7
Commissions and floor brokerage		47,039			49,017		4.2
Information processing and communications		85,850			91,832		7.0
Occupancy and related depreciation		35,031			34,265		(2.2	)
Business development expenses		15,177			16,232		7.0
Other		103,921			102,204		(1.7	)

Total non-interest expenses		540,936			551,834		2.0

Income before income taxes		144,539			160,482		11.0
Income tax expense		35,512			48,828		37.5

Net income		109,027			111,654		2.4

Less: Net income attributable to noncontrolling interests		1,022			2,948		188.5

Net income attributable to NHI shareholders		108,005			108,706		0.6

Per share of common stock:

	Yen					% Change
Basic-
Net income attributable to NHI shareholders per share		30.10			30.79		2.3

Diluted-
Net income attributable to NHI shareholders per share		29.39			30.20		2.8

– 8 –

(3) Consolidated Statements of Comprehensive Income


	Millions of yen						% Change
	For the six months ended						(B-A)/(A)
	September 30, 2016(A)			September 30, 2017(B)			(B-A)/(A)
Net income		109,027			111,654			2.4
Other comprehensive income (loss):
Cumulative translation adjustments:
Cumulative translation adjustments		(95,129	)		10,636			—
Deferred income taxes		5,882			(801	)		—

Total		(89,247	)		9,835			—

Defined benefit pension plans:
Pension liability adjustment		92			381			314.1
Deferred income taxes		(81	)		(18	)		—

Total		11			363			—

Non-trading securities:
Net unrealized gain (loss) on non-trading securities		(8,492	)		1,487			—
Deferred income taxes		1,345			(179	)		—

Total		(7,147	)		1,308			—

Own Credit Adjustments:
Own Credit Adjustments		(19,093	)		(10,670	)		—
Deferred income taxes		2,920			1,331			(54.4	)

Total		(16,173	)		(9,339	)		—

Total other comprehensive income (loss)		(112,556	)		2,167			—

Comprehensive income		(3,529	)		113,821			—
Less: Comprehensive income attributable to noncontrolling interests		(877	)		3,182			—

Comprehensive income attributable to NHI shareholders		(2,652	)		110,639			—

(4)

Note with respect to the Assumption as a Going Concern

Not applicable.

– 9 –

(5)

Segment Information – Operating Segment

The following table shows business segment information and reconciliation items to the consolidated statements of income.


	Millions of yen						% Change
	For the six months ended
	September 30, 2016 (A)			September 30, 2017 (B)			(B-A)/(A)
Net revenue

Business segment information:
Retail		169,915			203,470		19.7
Asset Management		47,211			63,515		34.5
Wholesale		370,795			338,279		(8.8)

Subtotal		587,921			605,264		2.9
Other		100,522			104,317		3.8

Net revenue		688,443			709,581		3.1

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(2,968	)		2,735		—

Net revenue		685,475			712,316		3.9


Non-interest expenses

Business segment information:
Retail		146,840			153,031		4.2
Asset Management		27,539			29,477		7.0
Wholesale		284,886			295,943		3.9

Subtotal		459,265			478,451		4.2
Other		81,671			73,383		(10.1)

Non-interest expenses		540,936			551,834		2.0

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—		—

Non-interest expenses		540,936			551,834		2.0


Income (loss) before income taxes

Business segment information:
Retail		23,075			50,439		118.6
Asset Management		19,672			34,038		73.0
Wholesale		85,909			42,336		(50.7)

Subtotal		128,656			126,813		(1.4)
Other*		18,851			30,934		64.1

Income (loss) before income taxes		147,507			157,747		6.9

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(2,968	)		2,735		—

Income (loss) before income taxes		144,539			160,482		11.0

* Major components Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.” The following table presents the major components of income (loss) before income taxes in “Other.”
	Millions of yen						% Change
	For the six months ended
	September 30, 2016 (A)			September 30, 2017 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		7,855			(96	)	—
Realized gain (loss) on investments in equity securities held for operating purposes		656			387		(41.0)
Equity in earnings of affiliates		12,003			15,430		28.6
Corporate items		(9,572	)		1,751		—
Other		7,909			13,462		70.2

Total		18,851			30,934		64.1

– 10 –

(6)

Significant Changes in Equity

Not applicable. For further details of the changes, please refer below.


	Millions of yen
	For the six months ended September 30, 2017
Common stock
Balance at beginning of year		594,493

Balance at end of period		594,493

Additional paid-in capital
Balance at beginning of year		681,329
Issuance and exercise of common stock options		(3,883	)

Balance at end of period		677,446

Retained earnings
Balance at beginning of year		1,663,234
Net income attributable to NHI shareholders		108,706
Cash dividends		(31,375	)
Gain (loss) on sales of treasury stock		(3,698	)

Balance at end of period		1,736,867

Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year		47,767
Net change during the period		9,834

Balance at end of period		57,601

Defined benefit pension plans
Balance at beginning of year		(41,020	)
Pension liability adjustment		363

Balance at end of period		(40,657	)

Non-trading securities
Balance at beginning of year		20,344
Net unrealized gain on non-trading securities		1,075

Balance at end of period		21,419

Own credit adjustments
Balance at beginning of year		6,561
Own credit adjustments		(9,339	)

Balance at end of period		(2,778	)

Balance at end of period		35,585

Common stock held in treasury
Balance at beginning of year		(182,792	)
Repurchases of common stock		(39,305	)
Sale of common stock		0
Common stock issued to employees		13,356
Other net change in treasury stock		562

Balance at end of period		(208,179	)

Total NHI shareholders’ equity

Balance at end of period		2,836,212

Noncontrolling interests
Balance at beginning of year		53,875
Net change during the period		2,320

Balance at end of period		56,195

Total equity

Balance at end of period		2,892,407

– 11 –

3.	Supplementary Information

(1)

Consolidated Statements of Income – Quarterly Comparatives


	Millions of yen																% Change			Millions of yen
	For the three months ended																(B-A)/(A)			For the year ended March 31, 2017
	June 30, 2016			September 30, 2016			December 31, 2016		March 31, 2017			June 30, 2017(A)		September 30, 2017(B)			(B-A)/(A)			For the year ended March 31, 2017
Revenue:
Commissions		76,255			74,640			86,257		89,977			90,968		85,324			(6.2	)		327,129
Fees from investment banking		17,313			23,353			23,743		28,171			22,707		27,083			19.3			92,580
Asset management and portfolio service fees		52,612			52,140			55,106		56,621			58,343		61,212			4.9			216,479
Net gain on trading		140,143			118,758			108,385		108,301			120,467		88,391			(26.6	)		475,587
Gain (loss) on private equity investments		(13	)		(420	)		596		1,208			359		(330	)		—			1,371
Interest and dividends		106,551			108,863			117,383		108,239			134,392		141,612			5.4			441,036
Gain (loss) on investments in equity securities		(9,966	)		7,654			12,865		(2,845	)		62		3,060			—			7,708
Other		35,517			41,121			39,549		37,439			40,628		56,037			37.9			153,626

Total revenue		418,412			426,109			443,884		427,111			467,926		462,389			(1.2	)		1,715,516
Interest expense		79,932			79,114			75,239		78,034			107,103		110,896			3.5			312,319

Net revenue		338,480			346,995			368,645		349,077			360,823		351,493			(2.6	)		1,403,197

Non-interest expenses:
Compensation and benefits		125,949			127,969			127,592		114,875			136,249		122,035			(10.4	)		496,385
Commissions and floor brokerage		24,172			22,867			22,977		24,479			23,775		25,242			6.2			94,495
Information processing and communications		44,249			41,601			42,152		47,278			44,569		47,263			6.0			175,280
Occupancy and related depreciation		18,228			16,803			16,879		17,926			17,056		17,209			0.9			69,836
Business development expenses		8,296			6,881			8,848		11,086			8,409		7,823			(7.0	)		35,111
Other		54,821			49,100			54,249		51,125			53,322		48,882			(8.3	)		209,295

Total non-interest expenses		275,715			265,221			272,697		266,769			283,380		268,454			(5.3	)		1,080,402

Income before income taxes		62,765			81,774			95,948		82,308			77,443		83,039			7.2			322,795
Income tax expense		15,791			19,721			25,218		19,499			19,405		29,423			51.6			80,229

Net income		46,974			62,053			70,730		62,809			58,038		53,616			(7.6	)		242,566

Less: Net income attributable to noncontrolling interests		149			873			384		1,543			1,182		1,766			49.4			2,949

Net income attributable to NHI shareholders		46,825			61,180			70,346		61,266			56,856		51,850			(8.8	)		239,617


	Yen																% Change			Yen
Per share of common stock:
Basic-
Net income attributable to NHI shareholders per share		13.00			17.10			19.89		17.38			16.07		14.70			(8.5	)		67.29

Diluted-
Net income attributable to NHI shareholders per share		12.71			16.68			19.44		17.00			15.77		14.45			(8.4	)		65.65

– 12 –

(2)

Business Segment Information – Quarterly Comparatives

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of income.


	Millions of yen																	% Change			Millions of yen
	For the three months ended																				For the year ended
	June 30, 2016			September 30, 2016			December 31, 2016			March 31, 2017			June 30, 2017 (A)			September 30, 2017 (B)		(B-A)/(A)			March 31, 2017

Net revenue

Business segment information:
Retail		83,751			86,164			101,342			103,177			101,684			101,786		0.1			374,434
Asset Management		25,934			21,277			28,907			23,309			28,097			35,418		26.1			99,427
Wholesale		190,932			179,863			197,285			171,176			179,316			158,963		(11.4	)		739,256

Subtotal		300,617			287,304			327,534			297,662			309,097			296,167		(4.2	)		1,213,117
Other		48,411			52,111			28,691			54,251			51,707			52,610		1.7			183,464

Net revenue		349,028			339,415			356,225			351,913			360,804			348,777		(3.3	)		1,396,581

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(10,548	)		7,580			12,420			(2,836	)		19			2,716		—			6,616

Net revenue		338,480			346,995			368,645			349,077			360,823			351,493		(2.6	)		1,403,197


Non-interest expenses

Business segment information:
Retail		75,086			71,754			75,393			77,409			76,792			76,239		(0.7	)		299,642
Asset Management		13,695			13,844			14,919			14,636			14,527			14,950		2.9			57,094
Wholesale		144,290			140,596			149,871			143,052			153,963			141,980		(7.8	)		577,809

Subtotal		233,071			226,194			240,183			235,097			245,282			233,169		(4.9	)		934,545
Other		42,644			39,027			32,514			31,672			38,098			35,285		(7.4	)		145,857

Non-interest expenses		275,715			265,221			272,697			266,769			283,380			268,454		(5.3	)		1,080,402

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—			—			—			—			—		—			—

Non-interest expenses		275,715			265,221			272,697			266,769			283,380			268,454		(5.3	)		1,080,402


Income (loss) before income taxes

Business segment information:
Retail		8,665			14,410			25,949			25,768			24,892			25,547		2.6			74,792
Asset Management		12,239			7,433			13,988			8,673			13,570			20,468		50.8			42,333
Wholesale		46,642			39,267			47,414			28,124			25,353			16,983		(33.0	)		161,447

Subtotal		67,546			61,110			87,351			62,565			63,815			62,998		(1.3	)		278,572
Other*		5,767			13,084			(3,823	)		22,579			13,609			17,325		27.3			37,607

Income (loss) before income taxes		73,313			74,194			83,528			85,144			77,424			80,323		3.7			316,179

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(10,548	)		7,580			12,420			(2,836	)		19			2,716		—			6,616

Income (loss) before income taxes		62,765			81,774			95,948			82,308			77,443			83,039		7.2			322,795

* Major components Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.” The following table presents the major components of income (loss) before income taxes in “Other.”
	Millions of yen																	% Change			Millions of yen
	For the three months ended																				For the year ended
	June 30, 2016			September 30, 2016			December 31, 2016			March 31, 2017			June 30, 2017 (A)			September 30, 2017 (B)		(B-A)/(A)			March 31, 2017
Net gain (loss) related to economic hedging transactions		11,974			(4,119	)		(15,948	)		814			(654	)		558		—			(7,279	)
Realized gain (loss) on investments in equity securities held for operating purposes		582			74			445			(9	)		43			344		700.0			1,092
Equity in earnings of affiliates		1,058			10,945			10,960			9,379			7,022			8,408		19.7			32,342
Corporate items		(4,306	)		(5,266	)		(769	)		3,902			154			1,597		937.0			(6,439	)
Other		(3,541	)		11,450			1,489			8,493			7,044			6,418		(8.9	)		17,891

Total		5,767			13,084			(3,823	)		22,579			13,609			17,325		27.3			37,607

– 13 –

(3)

Other

Quarterly financial information for Nomura Securities Co., Ltd. can be found at the following URL.

http://www.nomuraholdings.com/company/group/nsc/pdf/2018_2q.pdf

– 14 –