Nomura hikes 2030/31 profit target by 50%, boosted by fee-based revenues

TOKYO, May 28 (Reuters) - Nomura Holdings has raised ​its profit target by 50% for the 2030/31 financial year, in a signal from Japan's ​largest ‌investment bank and brokerage of its confidence in its business transformation and its capacity to ⁠weather volatile markets.

Nomura is targeting at least ⁠750 billion yen ($4.7 billion) in income ​before income taxes, a presentation released ahead of its investor event on Friday showed. It is also aiming for a return on equity (RoE), a measure of ​profitability, of ‌between 10% and 12% or more for the year ending March 2031.

The previous targets were for at least 500 billion yen in income before income taxes and 8% to 10% or greater RoE.

"Business model transformation has ​significantly improved the stability of earnings and our profit-generating capacity," Nomura's presentation said.

Nomura has ‌sought over several years to secure stable fee-based revenues that are less vulnerable to fluctuating market conditions that swayed ‌its earnings in the past. The hiked targets come off the back of two years of record annual net profit in which Nomura consistently grew revenue ​and income in its fee-based wealth management and investment management businesses.

Nomura has also captured much of the ‌fee pool in Japan's booming M&A market even amid high market uncertainty caused by U.S. President Trump's tariff announcements in 2025 and the Iran war this year.

In ⁠its investment ⁠management division, Nomura now hopes to generate 150 ‌billion yen in income before income taxes in the year ending March 2031, up from its ​100 billion yen ​target. Last year, Nomura announced it would acquire the ‌U.S. and European public asset management businesses of Macquarie Group for $1.8 billion, which swelled the assets it manages and from which it generates fees.