Nomura Profit Slumps 95%, Plans $440 Million Share Buy Back

Net income at Japan’s biggest brokerage totaled 3.21 billion yen in the three months ended Sept. 30 after it booked a 39 billion yen provision that dates back to before the global financial crisis, it said in a statement Friday. The firm said it plans to buy back as much as 2.5% of its outstanding shares.

In earnings that Chief Financial Officer Takumi Kitamura called “very disappointing,” a 26% jump in investment banking revenue and a 14% rise in revenue from investment management weren’t enough to offset the provision. Revenue from retail fell 8% year on year, while revenue from wholesale dropped 22%.

The results deal a further blow to Nomura following the collapse of Archegos, an obscure investment firm set up to manage the fortune of trader Bill Hwang, that cost the brokerage $2.9 billion. Only Credit Suisse Group AG suffered a bigger hit at $5.5 billion.

Nomura said it would set up a board risk committee comprising outside directors and a non-executive director to enhance risk management and conduct “rigorous” controls and business oversight.

Article excerpted from yahoo.