Edgar Filing: NOMURA HOLDINGS INC

FORM 6-K

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Commission File Number: 1-15270

For the month of July 2017

NOMURA HOLDINGS, INC.

(Translation of registrant’s name into English)

9-1, Nihonbashi 1-chome

Chuo-ku, Tokyo 103-8645

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Information furnished on this form:

EXHIBIT


Exhibit Number

1.		Financial Summary – Three months ended June 30, 2017

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	NOMURA HOLDINGS, INC.

Date: July 28, 2017	By:	/s/ Hajime Ikeda
		Hajime Ikeda
		Senior Managing Director

Financial Summary For the Three Months Ended June 30, 2017 (U.S. GAAP)


Date:		July 28, 2017
Company name (code number):		Nomura Holdings, Inc. (8604)
Stock exchange listings:		(In Japan) Tokyo, Nagoya
		(Overseas) New York, Singapore
Representative:		Koji Nagai
		President and Group CEO, Nomura Holdings, Inc.
For inquiries:		Michio Okazaki
		Managing Director, Head of Management Accounting and Investor Relations, Nomura Holdings, Inc.
		Tel: (Country Code 81) 3-5255-1000
		URL: http://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results


	(Rounded to nearest million)

	For the three months ended June 30
	2016						2017
	(Millions of yen, except per share data)
				% Change from June 30, 2015						% Change from June 30, 2016
Total revenue		418,412			(17.7	%)		467,926			11.8	%
Net revenue		338,480			(20.2	%)		360,823			6.6	%
Income before income taxes		62,765			(40.8	%)		77,443			23.4	%
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		46,825			(31.9	%)		56,856			21.4	%
Comprehensive income		(46,781	)		—	%		56,022			—	%
Basic-Net income attributable to NHI shareholders per share (Yen)		13.00						16.07
Diluted-Net income attributable to NHI shareholders per share (Yen)		12.71						15.77
Return on shareholders’ equity-annualized		7.0	%					8.1	%

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI shareholders to Total NHI shareholders’ equity.

(2) Financial Position


	At March 31			At June 30
	2017			2017
	(Millions of yen, except per share data)
Total assets		42,852,078			44,477,783
Total equity		2,843,791			2,910,789
Total NHI shareholders’ equity		2,789,916			2,847,020
Total NHI shareholders’ equity as a percentage of total assets		6.5	%		6.4	%
Total NHI shareholders’ equity per share (Yen)		790.70			802.63

2. Cash Dividends


	For the year ended March 31
	2017		2018		2018 (Plan)
	(Yen amounts)
Dividends per share
Dividends record dates
At June 30		—		—		—
At September 30		9.00		—		Unconfirmed
At December 31		—		—		—
At March 31		11.00		—		Unconfirmed
For the year		20.00		—		Unconfirmed

Note: Nomura plans to forgo dividend distribution for Q3 of fiscal year 2018. Fiscal year 2018 Q2 and Q4 dividends are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2018”.

3. Earnings Forecasts for the year ending March 31, 2018

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings forecasts.

Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in Specified Subsidiaries accompanying changes in scope of consolidation.)

(2) Adoption of the simplified and particular accounting treatments: None

(3) Changes in accounting policies

Changes in accounting policies due to amendments to the accounting standards : None

Changes in accounting policies due to other than a) : None

(4) Number of shares issued (common stock)


	At March 31		At June 30
	2017		2017
Number of shares outstanding (including treasury stock)		3,822,562,601		3,822,562,601
Number of treasury stock		294,133,150		275,433,230

	For the three months ended June 30
	2016		2017
Average number of shares outstanding (year-to-date)		3,600,920,503		3,538,529,057

*This quarterly report is not subject to quarterly review

Table of Contents for the Accompanying Materials


1. Qualitative Information of the Quarterly Consolidated Results			P. 2

(1) Consolidated Operating Results			P. 2
(2) Consolidated Financial Position			P. 4
(3) Consolidated Earnings Forecasts			P. 4

2. Quarterly Consolidated Financial Statements			P. 5

(1) Consolidated Balance Sheets			P. 6
(2) Consolidated Statements of Income			P. 8
(3) Consolidated Statements of Comprehensive Income			P. 9
(4) Note with respect to the Assumption as a Going Concern			P. 9
(5) Segment Information – Operating Segment			P.10
(6) Significant Changes in Equity			P.11
(7) Significant Subsequent Events			P.12

3. Supplementary Information			P.13

(1) Consolidated Statements of Income – Quarterly Comparatives			P.13
(2) Business Segment Information – Quarterly Comparatives			P.14
(3) Other			P.15

– 1 –

1.	Qualitative Information of the Quarterly Consolidated Results

(1)

Consolidated Operating Results

U.S. GAAP


	Billions of yen						% Change
	For the three months ended						(B-A)/(A)
	June 30, 2016 (A)			June 30, 2017 (B)			(B-A)/(A)
Net revenue		338.5			360.8			6.6
Non-interest expenses		275.7			283.4			2.8

Income (loss) before income taxes		62.8			77.4			23.4
Income tax expense		15.8			19.4			22.9

Net income (loss)		47.0			58.0			23.6

Less: Net income (loss) attributable to noncontrolling interests		0.1			1.2			693.3

Net income (loss) attributable to NHI shareholders		46.8			56.9			21.4

Return on shareholders’ equity-annualized		7.0	%		8.1	%		—

Note: Return on shareholders’ equity is a ratio of Net income (loss) attributable to NHI shareholders to Total NHI shareholders’ equity.

Nomura Holdings, Inc. and its consolidated entities (collectively, “Nomura”) reported net revenue of 360.8 billion yen for the three months ended June 30, 2017, an increase of 6.6% from the same period in the prior year. Non-interest expenses increased by 2.8% from the same period in the prior year to 283.4 billion yen. Income before income taxes was 77.4 billion yen and net income attributable to NHI shareholders was 56.9 billion yen for the three months ended June 30, 2017.

Segment Information


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2016 (A)		June 30, 2017 (B)		(B-A)/(A)
Net revenue		349.0		360.8		3.4
Non-interest expenses		275.7		283.4		2.8

Income (loss) before income taxes		73.3		77.4		5.6

In the above segment information totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the three months ended June 30, 2017 was 360.8 billion yen, an increase of 3.4% from the same period in the prior year. Non-interest expenses increased by 2.8% from the same period in the prior year to 283.4 billion yen. Income before income taxes was 77.4 billion yen for the three months ended June 30, 2017. Please refer to page 10 for further details of the differences between U.S. GAAP and business segment amounts.

– 2 –

<Business Segment Results>

Operating Results of Retail


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2016 (A)		June 30, 2017 (B)		(B-A)/(A)
Net revenue		83.8		101.7		21.4
Non-interest expenses		75.1		76.8		2.3

Income (loss) before income taxes		8.7		24.9		187.3

Net revenue increased by 21.4% from the same period in the prior year to 101.7 billion yen, primarily due to an increase in commissions received from distribution of investment trusts and brokerage. Non-interest expense increased by 2.3% to 76.8 billion yen. As a result, income before income taxes increased by 187.3% to 24.9 billion yen.

Operating Results of Asset Management


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2016 (A)		June 30, 2017 (B)		(B-A)/(A)
Net revenue		25.9		28.1		8.3
Non-interest expenses		13.7		14.5		6.1

Income (loss) before income taxes		12.2		13.6		10.9

Net revenue increased by 8.3% from the same period in the prior year to 28.1 billion yen. Non-interest expense increased by 6.1% to 14.5 billion yen. As a result, income before income taxes increased by 10.9% to 13.6 billion yen. Assets under management were 46.1 trillion yen as of June 30, 2017.

Operating Results of Wholesale


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2016 (A)		June 30, 2017 (B)		(B-A)/(A)
Net revenue		190.9		179.3		(6.1	)
Non-interest expenses		144.3		154.0		6.7

Income (loss) before income taxes		46.6		25.4		(45.6	)

Net revenue decreased by 6.1% from the same period in the prior year to 179.3 billion yen. Non-interest expense increased by 6.7% to 154.0 billion yen. As a result, income before income taxes decreased by 45.6% from the same period in the prior year to 25.4 billion yen.

– 3 –

Other Operating Results


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2016 (A)		June 30, 2017 (B)		(B-A)/(A)
Net revenue		48.4		51.7		6.8
Non-interest expenses		42.6		38.1		(10.7	)

Income (loss) before income taxes		5.8		13.6		136.0

Net revenue was 51.7 billion yen. Income before income taxes was 13.6 billion yen.

(2)

Consolidated Financial Position

Total assets as of June 30, 2017 were 44,477.8 billion yen, an increase of 1,625.7 billion yen compared to March 31, 2017, mainly due to the increase in Trading assets. Total liabilities as of June 30, 2017 were 41,567.0 billion yen, an increase of 1,558.7 billion yen compared to March 31, 2017, mainly due to the increase in Securities sold under agreements to repurchase. Total equity as of June 30, 2017 was 2,910.8 billion yen, an increase of 67.0 billion yen compared to March 31, 2017.

(3)

Consolidated Earnings Forecasts

– 4 –

2.	Quarterly Consolidated Financial Statements

The quarterly consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes to the consolidated financial statements of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 26, 2017) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 26, 2017) for the year ended March 31, 2017.

– 5 –

(1)

Consolidated Balance Sheets


	Millions of yen
	March 31, 2017			June 30, 2017			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		2,536,840			2,320,788			(216,052	)
Time deposits		207,792			203,302			(4,490	)
Deposits with stock exchanges and other segregated cash		227,456			262,119			34,663

Total cash and cash deposits		2,972,088			2,786,209			(185,879	)

Loans and receivables:
Loans receivable		1,875,828			1,853,980			(21,848	)
Receivables from customers		148,378			121,687			(26,691	)
Receivables from other than customers		1,076,773			1,530,533			453,760
Allowance for doubtful accounts		(3,551	)		(3,606	)		(55	)

Total loans and receivables		3,097,428			3,502,594			405,166

Collateralized agreements:
Securities purchased under agreements to resell		11,456,591			12,966,214			1,509,623
Securities borrowed		7,273,234			5,412,343			(1,860,891	)

Total collateralized agreements		18,729,825			18,378,557			(351,268	)

Trading assets and private equity investments:
Trading assets*		15,165,310			16,930,271			1,764,961
Private equity investments		27,054			23,682			(3,372	)

Total trading assets and private equity investments		15,192,364			16,953,953			1,761,589

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥445,000 million as of March 31, 2017 and ¥458,735 million as of June 30, 2017)		349,696			355,876			6,180
Non-trading debt securities*		775,025			770,144			(4,881	)
Investments in equity securities*		146,730			149,489			2,759
Investments in and advances to affiliated companies*		420,116			420,775			659
Other		1,168,806			1,160,186			(8,620	)

Total other assets		2,860,373			2,856,470			(3,903	)

Total assets		42,852,078			44,477,783			1,625,705

*	Including securities pledged as collateral

– 6 –


			Millions of yen
			March 31, 2017			June 30, 2017			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings				543,049			597,964			54,915
Payables and deposits:
Payables to customers				1,005,670			1,063,663			57,993
Payables to other than customers				1,569,922			1,449,305			(120,617	)
Deposits received at banks				1,132,843			1,180,590			47,747

Total payables and deposits				3,708,435			3,693,558			(14,877	)

Collateralized financing:
Securities sold under agreements to repurchase				17,095,898			18,639,563			1,543,665
Securities loaned				1,627,124			1,603,305			(23,819	)
Other secured borrowings				338,069			326,338			(11,731	)

Total collateralized financing				19,061,091			20,569,206			1,508,115

Trading liabilities				8,191,794			8,052,472			(139,322	)
Other liabilities				1,308,510			1,135,455			(173,055	)
Long-term borrowings				7,195,408			7,518,339			322,931

Total liabilities				40,008,287			41,566,994			1,558,707


Equity
NHI shareholders’ equity:
Common stock
Authorized	-	6,000,000,000 shares
Issued	-	3,822,562,601 shares as of March 31, 2017 and 3,822,562,601 shares as of June 30, 2017
Outstanding	-	3,528,429,451 shares as of March 31, 2017 and 3,547,129,371 shares as of June 30, 2017		594,493			594,493			—
Additional paid-in capital				681,329			675,846			(5,483	)
Retained earnings				1,663,234			1,716,773			53,539
Accumulated other comprehensive income				33,652			31,088			(2,564	)

Total NHI shareholders’ equity before treasury stock				2,972,708			3,018,200			45,492
Common stock held in treasury, at cost -
294,133,150 shares as of March 31, 2017 and
275,433,230 shares as of June 30, 2017				(182,792	)		(171,180	)		11,612

Total NHI shareholders’ equity				2,789,916			2,847,020			57,104

Noncontrolling interests				53,875			63,769			9,894

Total equity				2,843,791			2,910,789			66,998

Total liabilities and equity				42,852,078			44,477,783			1,625,705

– 7 –

(2)

Consolidated Statements of Income


	Millions of yen					% Change
	For the three months ended
	June 30, 2016 (A)			June 30, 2017 (B)		(B-A)/(A)
Revenue:
Commissions		76,255			90,968		19.3
Fees from investment banking		17,313			22,707		31.2
Asset management and portfolio service fees		52,612			58,343		10.9
Net gain on trading		140,143			120,467		(14.0	)
Gain (loss) on private equity investments		(13	)		359		—
Interest and dividends		106,551			134,392		26.1
Gain (loss) on investments in equity securities		(9,966	)		62		—
Other		35,517			40,628		14.4

Total revenue		418,412			467,926		11.8
Interest expense		79,932			107,103		34.0

Net revenue		338,480			360,823		6.6

Non-interest expenses:
Compensation and benefits		125,949			136,249		8.2
Commissions and floor brokerage		24,172			23,775		(1.6	)
Information processing and communications		44,249			44,569		0.7
Occupancy and related depreciation		18,228			17,056		(6.4	)
Business development expenses		8,296			8,409		1.4
Other		54,821			53,322		(2.7	)

Total non-interest expenses		275,715			283,380		2.8

Income before income taxes		62,765			77,443		23.4
Income tax expense		15,791			19,405		22.9

Net income		46,974			58,038		23.6

Less: Net income attributable to noncontrolling interests		149			1,182		693.3

Net income attributable to NHI shareholders		46,825			56,856		21.4

Per share of common stock:

	Yen					% Change
Basic-
Net income attributable to NHI shareholders per share		13.00			16.07		23.6

Diluted-
Net income attributable to NHI shareholders per share		12.71			15.77		24.1

– 8 –

(3)

Consolidated Statements of Comprehensive Income


	Millions of yen						% Change
	For the three months ended
	June 30, 2016 (A)			June 30, 2017 (B)			(B-A)/(A)
Net income		46,974			58,038			23.6
Other comprehensive income (loss):
Cumulative translation adjustments:
Cumulative translation adjustments		(81,335	)		3,086			—
Deferred income taxes		4,678			(321	)		—

Total		(76,657	)		2,765			—

Defined benefit pension plans:
Pension liability adjustment		(333	)		(1,709	)		—
Deferred income taxes		57			103			80.7

Total		(276	)		(1,606	)		—

Non-trading securities:
Net unrealized gain (loss) on non-trading securities		(2,062	)		2,165			—
Deferred income taxes		(429	)		(474	)		—

Total		(2,491	)		1,691			—

Own Credit Adjustments:
Own Credit Adjustments:		(17,253	)		(6,077	)		—
Deferred income taxes		2,922			1,211			(58.6	)

Total		(14,331	)		(4,866	)		—

Total other comprehensive income (loss)		(93,755	)		(2,016	)		—

Comprehensive income		(46,781	)		56,022			—
Less: Comprehensive income attributable to noncontrolling interests		(717	)		1,730			—

Comprehensive income attributable to NHI shareholders		(46,064	)		54,292			—

(4)

Note with respect to the Assumption as a Going Concern

Not applicable.

– 9 –

(5)

Segment Information – Operating Segment

The following table shows business segment information and reconciliation items to the consolidated statements of income.


	Millions of yen					% Change
	For the three months ended					(B-A)/(A)
	June 30, 2016 (A)			June 30, 2017 (B)		(B-A)/(A)
Net revenue

Business segment information:
Retail		83,751			101,684		21.4
Asset Management		25,934			28,097		8.3
Wholesale		190,932			179,316		(6.1	)

Subtotal		300,617			309,097		2.8
Other		48,411			51,707		6.8

Net revenue		349,028			360,804		3.4

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(10,548	)		19		—

Net revenue		338,480			360,823		6.6


Non-interest expenses

Business segment information:
Retail		75,086			76,792		2.3
Asset Management		13,695			14,527		6.1
Wholesale		144,290			153,963		6.7

Subtotal		233,071			245,282		5.2
Other		42,644			38,098		(10.7	)

Non-interest expenses		275,715			283,380		2.8

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—		—

Non-interest expenses		275,715			283,380		2.8


Income (loss) before income taxes

Business segment information:
Retail		8,665			24,892		187.3
Asset Management		12,239			13,570		10.9
Wholesale		46,642			25,353		(45.6	)

Subtotal		67,546			63,815		(5.5	)
Other*		5,767			13,609		136.0

Income (loss) before income taxes		73,313			77,424		5.6

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(10,548	)		19		—

Income (loss) before income taxes		62,765			77,443		23.4

* Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”


	Millions of yen						% Change
	For the three months ended
	June 30, 2016 (A)			June 30, 2017 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		11,974			(654	)		—
Realized gain (loss) on investments in equity securities held for operating purposes		582			43			(92.6	)
Equity in earnings of affiliates		1,058			7,022			563.7
Corporate items		(4,306	)		154			—
Other		(3,541	)		7,044			—

Total		5,767			13,609			136.0

– 10 –

(6)

Significant Changes in Equity

Not applicable. For further details of the changes, please refer below.


	Millions of yen
	For the three months ended June 30, 2017
Common stock
Balance at beginning of year		594,493

Balance at end of period		594,493

Additional paid-in capital
Balance at beginning of year		681,329
Issuance and exercise of common stock options		(5,483	)

Balance at end of period		675,846

Retained earnings
Balance at beginning of year		1,663,234
Net income attributable to NHI shareholders		56,856
Gain (loss) on sales of treasury stock		(3,317	)

Balance at end of period		1,716,773

Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year		47,767
Net change during the period		2,602

Balance at end of period		50,369

Defined benefit pension plans
Balance at beginning of year		(41,020	)
Pension liability adjustment		(1,606	)

Balance at end of period		(42,626	)

Non-trading securities
Balance at beginning of year		20,344
Net unrealized gain on non-trading securities		1,306

Balance at end of period		21,650

Own credit adjustments
Balance at beginning of year		6,561
Own credit adjustments		(4,866	)

Balance at end of period		1,695

Balance at end of period		31,088

Common stock held in treasury
Balance at beginning of year		(182,792	)
Repurchases of common stock		(3	)
Sale of common stock		0
Common stock issued to employees		11,587
Other net change in treasury stock		28

Balance at end of period		(171,180	)

Total NHI shareholders’ equity

Balance at end of period		2,847,020

Noncontrolling interests
Balance at beginning of year		53,875
Net change during the period		9,894

Balance at end of period		63,769

Total equity

Balance at end of period		2,910,789

– 11 –

(7)

Significant Subsequent Events

Sale of JAFCO Co., Ltd. (“JAFCO”) shares

On July 28, 2017 through JAFCO’s share buy-back, NHI has tendered and sold 8,488,200 shares of JAFCO, previously an equity-method affiliate. As a result of this transaction, income before income taxes of approximately 9 billion yen is expected to be booked in NHI’s consolidated financial statements during the second quarter of the fiscal year ending March 31, 2018. From the second quarter, JAFCO will no longer be an equity-method affiliate of NHI.

– 12 –

3.	Supplementary Information

(1)

Consolidated Statements of Income – Quarterly Comparatives


	Millions of yen													% Change			Millions of yen
	For the three months ended													(B-A)/(A)			For the year ended March 31, 2017
	June 30, 2016			September 30, 2016			December 31, 2016		March 31, 2017 (A)			June 30, 2017 (B)		(B-A)/(A)			For the year ended March 31, 2017
Revenue:
Commissions		76,255			74,640			86,257		89,977			90,968		1.1			327,129
Fees from investment banking		17,313			23,353			23,743		28,171			22,707		(19.4	)		92,580
Asset management and portfolio service fees		52,612			52,140			55,106		56,621			58,343		3.0			216,479
Net gain on trading		140,143			118,758			108,385		108,301			120,467		11.2			475,587
Gain (loss) on private equity investments		(13	)		(420	)		596		1,208			359		(70.3	)		1,371
Interest and dividends		106,551			108,863			117,383		108,239			134,392		24.2			441,036
Gain (loss) on investments in equity securities		(9,966	)		7,654			12,865		(2,845	)		62		—			7,708
Other		35,517			41,121			39,549		37,439			40,628		8.5			153,626

Total revenue		418,412			426,109			443,884		427,111			467,926		9.6			1,715,516
Interest expense		79,932			79,114			75,239		78,034			107,103		37.3			312,319

Net revenue		338,480			346,995			368,645		349,077			360,823		3.4			1,403,197

Non-interest expenses:
Compensation and benefits		125,949			127,969			127,592		114,875			136,249		18.6			496,385
Commissions and floor brokerage		24,172			22,867			22,977		24,479			23,775		(2.9	)		94,495
Information processing and communications		44,249			41,601			42,152		47,278			44,569		(5.7	)		175,280
Occupancy and related depreciation		18,228			16,803			16,879		17,926			17,056		(4.9	)		69,836
Business development expenses		8,296			6,881			8,848		11,086			8,409		(24.1	)		35,111
Other		54,821			49,100			54,249		51,125			53,322		4.3			209,295

Total non-interest expenses		275,715			265,221			272,697		266,769			283,380		6.2			1,080,402

Income before income taxes		62,765			81,774			95,948		82,308			77,443		(5.9	)		322,795
Income tax expense		15,791			19,721			25,218		19,499			19,405		(0.5	)		80,229

Net income		46,974			62,053			70,730		62,809			58,038		(7.6	)		242,566

Less: Net income attributable to noncontrolling interests		149			873			384		1,543			1,182		(23.4	)		2,949

Net income attributable to NHI shareholders		46,825			61,180			70,346		61,266			56,856		(7.2	)		239,617


	Yen													% Change			Yen
Per share of common stock:
Basic-
Net income attributable to NHI shareholders per share		13.00			17.10			19.89		17.38			16.07		(7.5	)		67.29

Diluted-
Net income attributable to NHI shareholders per share		12.71			16.68			19.44		17.00			15.77		(7.2	)		65.65

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(2)

Business Segment Information – Quarterly Comparatives

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of income.


	Millions of yen													% Change			Millions of yen
	For the three months ended																For the year ended
	June 30, 2016			September 30, 2016		December 31, 2016			March 31, 2017 (A)			June 30, 2017 (B)		(B-A)/(A)			March 31, 2017

Net revenue

Business segment information:
Retail		83,751			86,164		101,342			103,177			101,684		(1.4	)		374,434
Asset Management		25,934			21,277		28,907			23,309			28,097		20.5			99,427
Wholesale		190,932			179,863		197,285			171,176			179,316		4.8			739,256

Subtotal		300,617			287,304		327,534			297,662			309,097		3.8			1,213,117
Other		48,411			52,111		28,691			54,251			51,707		(4.7	)		183,464

Net revenue		349,028			339,415		356,225			351,913			360,804		2.5			1,396,581

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(10,548	)		7,580		12,420			(2,836	)		19		—			6,616

Net revenue		338,480			346,995		368,645			349,077			360,823		3.4			1,403,197


Non-interest expenses

Business segment information:
Retail		75,086			71,754		75,393			77,409			76,792		(0.8	)		299,642
Asset Management		13,695			13,844		14,919			14,636			14,527		(0.7	)		57,094
Wholesale		144,290			140,596		149,871			143,052			153,963		7.6			577,809

Subtotal		233,071			226,194		240,183			235,097			245,282		4.3			934,545
Other		42,644			39,027		32,514			31,672			38,098		20.3			145,857

Non-interest expenses		275,715			265,221		272,697			266,769			283,380		6.2			1,080,402

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—		—			—			—		—			—

Non-interest expenses		275,715			265,221		272,697			266,769			283,380		6.2			1,080,402


Income (loss) before income taxes

Business segment information:
Retail		8,665			14,410		25,949			25,768			24,892		(3.4	)		74,792
Asset Management		12,239			7,433		13,988			8,673			13,570		56.5			42,333
Wholesale		46,642			39,267		47,414			28,124			25,353		(9.9	)		161,447

Subtotal		67,546			61,110		87,351			62,565			63,815		2.0			278,572
Other*		5,767			13,084		(3,823	)		22,579			13,609		(39.7	)		37,607

Income (loss) before income taxes		73,313			74,194		83,528			85,144			77,424		(9.1	)		316,179

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(10,548	)		7,580		12,420			(2,836	)		19		—			6,616

Income (loss) before income taxes		62,765			81,774		95,948			82,308			77,443		(5.9	)		322,795

*	Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”


	Millions of yen															% Change			Millions of yen
	For the three months ended															(B-A)/(A)			For the year ended March 31, 2017
	June 30, 2016			September 30, 2016			December 31, 2016			March 31, 2017 (A)			June 30, 2017 (B)			(B-A)/(A)			For the year ended March 31, 2017
Net gain (loss) related to economic hedging transactions		11,974			(4,119	)		(15,948	)		814			(654	)		—			(7,279	)
Realized gain (loss) on investments in equity securities held for operating purposes		582			74			445			(9	)		43			—			1,092
Equity in earnings of affiliates		1,058			10,945			10,960			9,379			7,022			(25.1	)		32,342
Corporate items		(4,306	)		(5,266	)		(769	)		3,902			154			(96.1	)		(6,439	)
Other		(3,541	)		11,450			1,489			8,493			7,044			(17.1	)		17,891

Total		5,767			13,084			(3,823	)		22,579			13,609			(39.7	)		37,607

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(3)

Other

Quarterly financial information for Nomura Securities Co., Ltd. can be found at the following URL.

http://www.nomuraholdings.com/company/group/nsc/pdf/2018_1q.pdf

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