By Atsuko Fukase
TOKYO--Nomura Holdings Inc. said Friday it enjoyed another profitable quarter in the April-June period thanks to strong sales of retail financial products and a solid performance at its trading operations.
Japan's largest brokerage firm reported a net profit of Y65.89 billion, far above the Y1.89 billion profit it posted in the same period a year earlier. While it was still below the Y82.4 billion profit Nomura registered in the January-March quarter, the profit in the first three months of 2013 was largely due to a one-time gain from the sale of a portion of the company's real-estate unit.
Nomura's revenue in the April-June quarter increased 14.9% from a year earlier to Y505.27 billion.
The company's strong results were helped by solid growth at its retail operations thanks to Japan's roaring stock market.
Leading into the latest reporting period, the Nikkei Stock Average racked up a 19.2% on-quarter surge in January-March, which was followed by a 10.3% gain in the benchmark index in April-June as the economic policies of Prime Minister Shinzo Abe pushed the yen down against the dollar and gave equities a shot in the arm.
Strength in Japan also contributed to gains in Nomura's wholesale operations, which include its trading and investment banking business. Revenue in that segment jumped 59.7% from a year earlier to Y194.6 billion.
Despite the domestic boom, Nomura continues to struggle to generate profits overseas. The company, which is still in the middle of its $1 billion cost-cutting drive at its wholesale business, said its overseas business operations suffered a pretax loss of Y13.7 billion in the just-ended quarter after registering a pretax loss of Y42.0 billion in January-March.
Like other Japanese brokerages, Nomura, which reports results based on U.S. accounting standards, doesn't release earnings projections.
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