Segment and geographic information

6 Months Ended

Sep. 30, 2022

Segment and Geographic Information [Abstract]

Segment and geographic information

15. Segment and geographic information:

Operating segments—

Nomura’s operating management and management reporting are prepared based on the Retail, the Investment Management, and the Wholesale segments. Nomura structures its business segments based upon the nature of its main products and services, its client base and its management structure.

The accounting policies for segment information follow U.S. GAAP, except for a part of the impact of unrealized gains/losses on certain investments in equity securities held for operating purposes, which under U.S. GAAP are included in Income (loss) before income taxes, but excluded from segment information.

Revenues and expenses directly associated with each business segment are included in the operating results of each respective segment. Revenues and expenses that are not directly attributable to a particular segment are allocated to each respective business segment or included in “Other”, based upon Nomura’s allocation methodologies as used by management to assess each segment’s performance.

Business segments’ results are shown in the following tables. Net interest revenue is disclosed because management views interest revenue net of interest expense for its operating decisions. Business segments’ information on total assets is not disclosed because management does not utilize such information for its operating decisions and therefore, it is not reported to management.

	Millions of yen
	Retail		Investment Management			Wholesale(1)			Other (Incl. elimination)			Total
Six months ended September 30, 2021
Non-interest revenue	¥	168,475	¥	97,944		¥	255,957		¥	122,305		¥	644,681
Net interest revenue		1,702		(133	)		49,489			(28,837	)		22,221
Net revenue		170,177		97,811			305,446			93,468			666,902
Non-interest expenses		134,171		37,869			308,834			94,267			575,141
Income before income taxes	¥	36,006	¥	59,942		¥	(3,388	)	¥	(799	)	¥	91,761
Six months ended September 30, 2022
Non-interest revenue	¥	142,603	¥	35,366		¥	406,582		¥	57,991		¥	642,542
Net interest revenue		1,263		(1,616	)		(2,096	)		(18,443	)		(20,892	)
Net revenue		143,866		33,750			404,486			39,548			621,650
Non-interest expenses		133,465		39,911			359,025			41,368			573,769
Income (loss) before income taxes	¥	10,401	¥	(6,161	)	¥	45,461		¥	(1,820	)	¥	47,881
	Millions of yen
	Retail		Investment Management			Wholesale			Other (Incl. elimination)			Total
Three months ended September 30, 2021
Non-interest revenue	¥	84,395	¥	34,244		¥	145,187		¥	43,590		¥	307,416
Net interest revenue		796		85			27,482			(18,781	)		9,582
Net revenue		85,191		34,329			172,669			24,809			316,998
Non-interest expenses		68,207		19,300			147,700			65,192			300,399
Income (loss) before income taxes	¥	16,984	¥	15,029		¥	24,969		¥	(40,383	)	¥	16,599
Three months ended September 30, 2022
Non-interest revenue	¥	71,977	¥	27,058		¥	214,413		¥	25,325		¥	338,773
Net interest revenue		503		(887	)		(8,914	)		(9,702	)		(19,000	)
Net revenue		72,480		26,171			205,499			15,623			319,773
Non-interest expenses		66,995		20,618			185,310			13,551			286,474
Income before income taxes	¥	5,485	¥	5,553		¥	20,189		¥	2,072		¥	33,299

(1) Non-interest revenue and Non-interest expense for the six months ended September 30, 2021 include losses of ¥65,362 million arising from the U.S. Prime Brokerage Event. The losses are reported within Net gain on trading in the amount of ¥(56,073) million and in Non-interest expenses—Other in the amount of ¥9,289 million in the consolidated statements of income.

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
	Six months ended September 30
	2021			2022
Net gain (loss) related to economic hedging transactions	¥	(381	)	¥	(9,709	)
Realized gain on investments in equity securities held for operating purposes		196			295
Equity in earnings of affiliates		15,188			26,107
Corporate items(1)		(54,838	)		(1,475	)
Other(2)(3)		39,036			(17,038	)
Total	¥	(799	)	¥	(1,820	)
	Millions of yen
	Three months ended September 30
	2021			2022
Net gain (loss) related to economic hedging transactions	¥	(3,825	)	¥	98
Realized gain on investments in equity securities held for operating purposes		23			55
Equity in earnings of affiliates		5,571			9,114
Corporate items		(45,566	)		4,513
Other(3)		3,414			(11,708	)
Total	¥	(40,383	)	¥	2,072

(1) The loss before income taxes for the six months ended September 30, 2021 includes losses of approximately ¥40 billion related to legacy transactions.

(2) The income before income taxes for the six months ended September 30, 2021 includes a gain of ¥36,249 million from the sale of Nomura Research Institute, Ltd. ordinary shares.

(3) Includes the impact of Nomura’s own creditworthiness.

The table below presents reconciliations of the combined business segments’ results included in the preceding table to Nomura’s reported Net revenue, Non-interest expenses and Income before income taxes in the consolidated statements of income.

	Millions of yen
	Six months ended September 30
	2021		2022
Net revenue	¥	666,902	¥	621,650
Unrealized gain on investments in equity securities held for operating purposes		5,239		(4,664	)
Consolidated net revenue	¥	672,141	¥	616,986
Non-interest expenses	¥	575,141	¥	573,769
Unrealized gain (loss) on investments in equity securities held for operating purposes		—		—
Consolidated non-interest expenses	¥	575,141	¥	573,769
Income before income taxes	¥	91,761	¥	47,881
Unrealized gain on investments in equity securities held for operating purposes		5,239		(4,664	)
Consolidated income before income taxes	¥	97,000	¥	43,217
	Millions of yen
	Three months ended September 30
	2021		2022
Net revenue	¥	316,998	¥	319,773
Unrealized gain on investments in equity securities held for operating purposes		1,868		(1,815	)
Consolidated net revenue	¥	318,866	¥	317,958
Non-interest expenses	¥	300,399	¥	286,474
Unrealized gain (loss) on investments in equity securities held for operating purposes		—		—
Consolidated non-interest expenses	¥	300,399	¥	286,474
Income before income taxes	¥	16,599	¥	33,299
Unrealized gain on investments in equity securities held for operating purposes		1,868		(1,815	)
Consolidated income before income taxes	¥	18,467	¥	31,484

Geographic information—

Nomura’s identifiable assets, revenues and expenses are generally allocated based on the country of domicile of the legal entity providing the service. However, because of the integration of the global capital markets and the corresponding global nature of Nomura’s activities and services, it is not always possible to make a precise separation by location. As a result, various assumptions, which are consistent among years, have been made in presenting the following geographic data.

The table below presents a geographic allocation of Net revenue and Income (loss) before income taxes from operations by geographic areas, and long-lived assets associated with Nomura’s operations. Net revenue in “Americas” and “Europe” substantially represents Nomura’s operations in the U.S. and the U.K., respectively. Net revenue and Long-lived assets have been allocated based on transactions with external customers while Income (loss) before income taxes have been allocated based on the inclusion of intersegment transactions.

	Millions of yen
	Six months ended September 30
	2021			2022
Net revenue(1)(2):
Americas	¥	122,906		¥	119,139
Europe		66,997			64,064
Asia and Oceania		43,876			41,657
Subtotal		233,779			224,860
Japan		438,362			392,126
Consolidated	¥	672,141		¥	616,986
Income (loss) before income taxes(2):
Americas	¥	(53,824	)	¥	(43,011	)
Europe		(14,150	)		4,505
Asia and Oceania		13,724			23,917
Subtotal		(54,250	)		(14,589	)
Japan		151,250			57,806
Consolidated	¥	97,000		¥	43,217
	Millions of yen
	Three months ended September 30
	2021			2022
Net revenue(1):
Americas	¥	84,602		¥	75,057
Europe		33,629			35,533
Asia and Oceania		22,715			4,744
Subtotal		140,946			115,334
Japan		177,920			202,624
Consolidated	¥	318,866		¥	317,958
Income (loss) before income taxes:
Americas	¥	(17,225	)	¥	(21,364	)
Europe		(8,863	)		6,405
Asia and Oceania		7,103			15,574
Subtotal		(18,985	)		615
Japan		37,452			30,869
Consolidated	¥	18,467		¥	31,484

(1) There is no revenue derived from transactions with a single major external customer.

(2) Includes losses arising from the U.S. Prime Brokerage Event for six months ended September 30, 2021.

	Millions of yen
	March 31, 2022		September 30, 2022
Long-lived assets:
Americas	¥	103,045	¥	121,343
Europe		53,643		54,048
Asia and Oceania		23,600		22,804
Subtotal		180,288		198,195
Japan		269,135		267,226
Consolidated	¥	449,423	¥	465,421