ID :
27143
Wed, 10/29/2008 - 09:44
Auther :
Shortlink :
https://oananews.org//node/27143
The shortlink copeid
Nomura incurs 1st-half net loss of 149.46 bil. yen on trading losses
TOKYO, Oct. 28 Kyodo - Japan's top securities house Nomura Holdings Inc. said Tuesday it fell into the red in the April-September period with a group net loss of 149.46 billion yen
due to widespread trading losses linked to the global financial turmoil.
The first-half net loss for fiscal 2008 ending March 2009 compares with a group
net profit of 64.23 billion yen a year earlier.
For the six-month period, Nomura logged a pretax loss of 153.61 billion yen,
compared with a profit of 89.35 billion yen a year earlier, on revenue of
515.61 billion yen, down 51.7 percent.
Nomura remained in the red for three consecutive quarters with a net loss of
72.87 billion yen during the July-September quarter due to losses from credit,
derivatives and equities trading.
It also reported about 12 billion yen in losses linked to real estate assets,
adding the company still has an exposure of about 190 billion yen to real
estate-linked products excluding U.S. commercial mortgage loans.
''With turmoil in various sections of the markets and with the impact on the
real economy beginning to emerge, trading as a whole was very severe,''
Masafumi Nakada, Nomura's chief financial officer and senior managing director,
said at a press conference.
''We expect difficult earnings conditions to continue for some time in our
trading and brokerage businesses,'' Nakada said, adding the company felt ''a
sense of crisis'' about its sliding financial results.
The Japanese brokerage recently struck deals to purchase the operations of
failed U.S. investment bank Lehman Brothers Holdings Inc. in Europe, the Middle
East and the Asia-Pacific region including Japan, and took over about 8,150
Lehman employees.
''Despite the turmoil, we do not want to miss our chance to strengthen our
operations,'' Nakada said.
But he admitted Lehman's bankruptcy resulted in 17 billion yen of direct losses
from derivatives trading for the Japanese firm. Nomura also said the cost of
taking over Lehman's employees and operations will total about $2 billion,
which will be reflected in earnings from October.
Nomura's financial outlook looks even more severe as it warned of losses that
it is likely to incur starting in October from a position of around $425
million linked to an Icelandic financial institution.
The consolidated earnings results are based on U.S. accounting standards.
due to widespread trading losses linked to the global financial turmoil.
The first-half net loss for fiscal 2008 ending March 2009 compares with a group
net profit of 64.23 billion yen a year earlier.
For the six-month period, Nomura logged a pretax loss of 153.61 billion yen,
compared with a profit of 89.35 billion yen a year earlier, on revenue of
515.61 billion yen, down 51.7 percent.
Nomura remained in the red for three consecutive quarters with a net loss of
72.87 billion yen during the July-September quarter due to losses from credit,
derivatives and equities trading.
It also reported about 12 billion yen in losses linked to real estate assets,
adding the company still has an exposure of about 190 billion yen to real
estate-linked products excluding U.S. commercial mortgage loans.
''With turmoil in various sections of the markets and with the impact on the
real economy beginning to emerge, trading as a whole was very severe,''
Masafumi Nakada, Nomura's chief financial officer and senior managing director,
said at a press conference.
''We expect difficult earnings conditions to continue for some time in our
trading and brokerage businesses,'' Nakada said, adding the company felt ''a
sense of crisis'' about its sliding financial results.
The Japanese brokerage recently struck deals to purchase the operations of
failed U.S. investment bank Lehman Brothers Holdings Inc. in Europe, the Middle
East and the Asia-Pacific region including Japan, and took over about 8,150
Lehman employees.
''Despite the turmoil, we do not want to miss our chance to strengthen our
operations,'' Nakada said.
But he admitted Lehman's bankruptcy resulted in 17 billion yen of direct losses
from derivatives trading for the Japanese firm. Nomura also said the cost of
taking over Lehman's employees and operations will total about $2 billion,
which will be reflected in earnings from October.
Nomura's financial outlook looks even more severe as it warned of losses that
it is likely to incur starting in October from a position of around $425
million linked to an Icelandic financial institution.
The consolidated earnings results are based on U.S. accounting standards.
