Nomura Holdings, Inc. (NMR): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Nomura Holdings, Inc. (NMR), a global financial services group, operates and generates revenue? Keep reading to explore its history, ownership structure, mission, and business model, offering a comprehensive understanding of its role in the financial landscape. As of April 2025, Nomura has 26.85K employees and a market capitalization of $15.77 billion. Intrigued to learn more about this key player in investment banking, wealth management, and global markets?

Nomura Holdings, Inc. (NMR) History

Nomura's Founding Timeline

Year established

The company was established on December 25, 1925.

Original location

The company's origins are in Osaka, Japan.

Founding team members

The company was founded by Tokushichi Nomura, who established it as a spin-off from Osaka Nomura Bank.

Initial capital/funding

The initial capital for the securities division, which would become Nomura Securities, was ¥5 million.

Nomura's Evolution Milestones

Nomura's Transformative Moments

• Global Expansion Following World War II: Nomura played a crucial role in Japan's post-war economic recovery by facilitating the flow of capital into key industries. This period saw significant growth in its domestic operations and the establishment of international offices, marking its initial steps toward becoming a global financial services firm.
• Deregulation of Japanese Financial Markets in the 1980s: The deregulation of financial markets in Japan during the 1980s allowed Nomura to expand its product offerings and engage in new types of financial activities. This transformation enabled Nomura to compete more effectively with international firms and to offer a wider range of services to its clients.
• Acquisition of Lehman Brothers' Asia-Pacific Operations in 2008: The acquisition of Lehman Brothers' Asia-Pacific operations in 2008 was a transformative moment for Nomura, significantly increasing its presence and capabilities in the Asia-Pacific region. This bold move allowed Nomura to acquire valuable talent, client relationships, and infrastructure, positioning it as a major player in the global investment banking landscape.
• Strategic Reviews and Restructuring in the 2010s and 2020s: In response to volatile market conditions and evolving client needs, Nomura has undertaken several strategic reviews and restructuring initiatives. These efforts have focused on improving profitability, enhancing operational efficiency, and strengthening its competitive position. Key measures have included streamlining operations, optimizing its business portfolio, and investing in technology and talent.

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Nomura Holdings, Inc. (NMR) Ownership Structure

Nomura Holdings, Inc. features a widely held ownership structure, with a mix of institutional, retail, and insider holdings. This structure ensures that no single entity dominates the company's decisions.

Nomura's Current Status

Nomura Holdings is a publicly traded company, listed on the Tokyo Stock Exchange under the ticker symbol NMR and on the New York Stock Exchange as ADR NMR. This allows a broad range of investors to participate in the company's financial performance and strategic direction.

Nomura's Ownership Breakdown

As of April 2025, the ownership of Nomura Holdings is distributed among various shareholders. The following table summarizes the ownership breakdown:

Nomura's Leadership

Nomura's leadership team is composed of experienced executives who guide the company's strategic direction and operational execution. Key aspects of the leadership structure include:

• Group CEO: Kentaro Okuda holds the top executive position, responsible for overseeing the entire Nomura Group's operations and strategic initiatives.
• Executive Management Board: This board includes senior executives from various divisions, such as investment banking, global markets, and asset management, ensuring comprehensive oversight and decision-making.
• Independent Directors: A number of independent directors serve on the board, providing objective guidance and ensuring corporate governance standards are met.

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Nomura Holdings, Inc. (NMR) Mission and Values

Nomura aims to enrich society through its expertise in financial markets, committing to integrity and collaboration.

Nomura's Core Purpose

Official mission statement

Nomura's mission is to enrich society through its expertise in financial markets.

• Nomura Securities Co., Ltd. operates under the mission of contributing to the development of the Japanese economy through securities business, while also emphasizing sound business management.
• Nomura aims to provide intellectual insight and a financial perspective to help clients achieve sustainable growth.

Vision statement

Nomura's vision is to be a trusted partner, providing innovative solutions and contributing to a prosperous future.

• Nomura aims to be a global financial services group with a commitment to sustainability and creating long-term value for stakeholders.
• The company strives to connect markets East & West, offering unique insights and solutions to clients worldwide.

Company slogan/tagline

Nomura's tagline reflects its commitment to client success and market leadership.

• 'Connecting Markets East & West' highlights Nomura's global reach and ability to bridge different markets.
• Historically, Nomura has used slogans emphasizing growth and contributing to the economy, reflecting its evolving strategic priorities.

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Nomura Holdings, Inc. (NMR) How It Works

Nomura Holdings, Inc. operates as a global financial services group, providing investment, financing, and related services to individual, institutional, and government clients.

Nomura's Product/Service Portfolio

Nomura's Operational Framework

Nomura operates through a global network, with key business segments working in coordination to deliver comprehensive financial solutions. Here's how they create value:

• Global Network: Nomura has established a presence in over 30 countries, allowing it to serve clients globally and capitalize on diverse market opportunities.
• Integrated Business Model: The firm's business segments—Investment Banking, Global Markets, and Investment Management—collaborate to provide clients with integrated financial solutions.
• Risk Management: Nomura employs a comprehensive risk management framework to monitor and mitigate risks across all business activities.
• Technology Investment: Nomura invests in technology to enhance its trading capabilities, improve client service, and streamline operations.
• Client-Centric Approach: The firm focuses on building long-term relationships with clients by providing tailored solutions and advice.

Nomura's Strategic Advantages

Nomura's success in the financial services industry is driven by several key strategic advantages:

• Global Reach: Nomura's international presence allows it to access diverse markets and serve clients worldwide.
• Strong Brand Reputation: Nomura has a long-standing reputation for providing high-quality financial services and expertise.
• Comprehensive Service Offering: The firm's broad range of products and services enables it to meet the diverse needs of its clients.
• Experienced Professionals: Nomura employs a team of experienced professionals with deep industry knowledge and expertise.
• Innovation: Nomura continuously innovates and adapts to changing market conditions to maintain its competitive edge.

To gain more insights into the company's guiding principles, explore the Mission Statement, Vision, & Core Values of Nomura Holdings, Inc. (NMR).

Nomura Holdings, Inc. (NMR) How It Makes Money

Nomura Holdings, Inc. primarily generates revenue through its diverse range of financial services, including investment banking, wealth management, and global markets operations, catering to a broad client base that spans institutional investors, corporations, financial institutions, and individuals.

Revenue Breakdown

Nomura's revenue streams are categorized into several key segments. Here's a breakdown:

Business Economics

Nomura's business economics are influenced by global market conditions, regulatory changes, and competition within the financial services industry. Here are some key aspects:

• Investment Banking: Revenues are generated from advisory services for mergers and acquisitions, underwriting new securities issuances, and providing financial restructuring advice. Profitability is closely tied to the volume and size of deals completed, as well as the fees charged for these services.
• Wealth Management: This segment focuses on providing financial advice, investment products, and asset management services to high-net-worth individuals and families. Revenue is derived from management fees, commissions on investment products, and financial planning services. Growth in this area is driven by the ability to attract and retain clients, as well as the performance of managed assets.
• Global Markets: Encompasses trading in fixed income, equities, and other financial instruments. Revenue is generated through trading gains, commissions, and client facilitation. Profitability is heavily influenced by market volatility, trading volumes, and the firm's ability to anticipate market trends.

These operations are subject to various economic factors, including interest rates, inflation, and overall economic growth, which can significantly impact trading volumes, investment activity, and client demand for financial services. To know more about Nomura's mission, vision, and core values, check out: Mission Statement, Vision, & Core Values of Nomura Holdings, Inc. (NMR).

Financial Performance

Nomura's financial performance can be assessed through several key metrics:

• Net Revenue: Reflects the total income generated from all business segments. Monitoring net revenue trends provides insights into the company's overall growth and ability to generate income from its various operations.
• Pre-Tax Income: Indicates the profitability of Nomura's operations before accounting for taxes. This metric is crucial for assessing the efficiency and effectiveness of the firm's business strategies.
• Return on Equity (ROE): Measures the return generated on shareholders' equity, providing an indication of how effectively the company is using investments to generate profits. A higher ROE suggests more efficient capital utilization.
• Cost-to-Income Ratio: Shows the proportion of operating expenses relative to total income. A lower ratio indicates better cost management and operational efficiency.

As of the fiscal year 2024, Nomura reported a net revenue of $14.5 billion, reflecting a 7% increase from the previous year. The pre-tax income stood at $1.8 billion, with an ROE of 9.5%. The cost-to-income ratio was 72%, indicating stable operational efficiency.

Nomura Holdings, Inc. (NMR) Market Position & Future Outlook

Nomura is navigating a dynamic financial landscape, focusing on strategic initiatives to enhance its global presence and profitability. The company is adapting to changing market conditions and technological advancements to maintain a competitive edge.

Competitive Landscape

Note: Market share percentages are approximate and can fluctuate based on specific segments and reporting periods. The data represents a broad estimation of the global investment banking market.

Opportunities & Challenges

Industry Position

Nomura's industry standing can be further understood through the following points:

• Nomura is recognized as a leading financial institution with a significant presence in Asia.
• The company is focused on strengthening its global investment banking and wealth management businesses.
• Nomura is actively investing in technology and innovation to improve efficiency and client service.

To gain more insights into Nomura's financial performance, explore Breaking Down Nomura Holdings, Inc. (NMR) Financial Health: Key Insights for Investors.