Nomura Holdings, Inc. (NMR): Business Model Canvas [11-2024 Updated]

In the dynamic realm of finance, understanding the business model of major players like Nomura Holdings, Inc. (NMR) is crucial for investors and analysts alike. This Japanese financial powerhouse leverages key partnerships, innovative activities, and a robust value proposition to deliver comprehensive solutions across various customer segments. Discover how Nomura’s strategic approach positions it as a leader in investment banking, asset management, and trading operations.

Nomura Holdings, Inc. (NMR) - Business Model: Key Partnerships

Collaborations with global financial institutions

Nomura Holdings, Inc. has established significant collaborations with various global financial institutions. These partnerships are crucial for enhancing its market reach and service offerings. As of June 30, 2024, Nomura reported total assets of ¥59,741.1 billion, reflecting its extensive engagement in global markets and collaboration with other financial entities.

Strategic alliances with fintech companies

In 2024, Nomura has actively pursued strategic alliances with fintech companies to leverage technology and improve efficiency. These alliances aim to enhance Nomura's digital capabilities in wealth management and trading services. The net revenue from its Wealth Management segment was ¥114.0 billion for the three months ended June 30, 2024, indicating a strong performance bolstered by these partnerships.

Partnerships with regulatory bodies

Nomura maintains partnerships with various regulatory bodies to ensure compliance and navigate the complex regulatory landscape effectively. These relationships are pivotal in maintaining operational integrity and fostering trust among clients and stakeholders. The company reported a net income attributable to NHI shareholders of ¥68.9 billion for the three months ending June 30, 2024, which underscores its robust operational framework supported by regulatory partnerships.

Relationships with institutional investors

Institutional investors play a critical role in Nomura's business model. The firm has developed strong relationships with these investors, which are vital for capital raising and liquidity management. As of June 30, 2024, Nomura's income before income taxes was reported at ¥102.9 billion, reflecting the support and confidence institutional investors have in its financial strategies.

Partnership Type	Description	Impact on Financials
Global Financial Institutions	Collaborations to enhance market reach	Total assets: ¥59,741.1 billion
Fintech Companies	Strategic alliances for digital capabilities	Net revenue (Wealth Management): ¥114.0 billion
Regulatory Bodies	Partnerships to ensure compliance	Net income attributable to NHI shareholders: ¥68.9 billion
Institutional Investors	Strong relationships for capital raising	Income before income taxes: ¥102.9 billion

Nomura Holdings, Inc. (NMR) - Business Model: Key Activities

Investment banking services

Nomura Holdings provides a wide range of investment banking services, which include advisory services for mergers and acquisitions, capital raising through equity and debt offerings, and restructuring services. For the three months ended June 30, 2024, the net revenue from fees related to investment banking amounted to 41.3 billion yen, representing a 32.4% increase from the previous year's 31.1 billion yen.

Asset management and wealth management

As of June 30, 2024, Nomura's assets under management (AUM) reached 92.5 trillion yen, marking a significant growth in their asset management segment. The net revenue from this division was reported at 47.7 billion yen for the same period, which is a 79.7% increase compared to 26.5 billion yen in the previous year. Non-interest expenses in this segment were 24.5 billion yen, resulting in an income before income taxes of 23.2 billion yen, a staggering increase of 539.1%.

Trading and brokerage operations

Nomura's trading and brokerage operations generated net revenue of 244.8 billion yen for the three months ending June 30, 2024, an increase of 28.3% from 190.9 billion yen in the prior year. However, non-interest expenses in this segment also rose to 223.7 billion yen, leading to an income before income taxes of 21.1 billion yen, reflecting a significant increase of 905.3%.

Risk management and advisory services

Nomura's risk management and advisory services encompass a range of solutions to help clients manage financial risks. For the three months ending June 30, 2024, the company's comprehensive service offerings in this area contributed to a net revenue of 46.7 billion yen, with non-interest expenses of 31.6 billion yen, resulting in an income before income taxes of 15.1 billion yen.

Key Activity	Net Revenue (in billion yen)	Non-Interest Expenses (in billion yen)	Income Before Income Taxes (in billion yen)
Investment Banking Services	41.3	Not Specified	Not Specified
Asset Management and Wealth Management	47.7	24.5	23.2
Trading and Brokerage Operations	244.8	223.7	21.1
Risk Management and Advisory Services	46.7	31.6	15.1

Nomura Holdings, Inc. (NMR) - Business Model: Key Resources

Skilled financial professionals

Nomura Holdings employs approximately 27,000 individuals globally, with a significant proportion being skilled financial professionals. As of June 30, 2024, the company reported a net income attributable to NHI shareholders of 68.9 billion yen, reflecting the effectiveness of its talent in driving profitability.

Advanced trading technology

Nomura has invested heavily in advanced trading technologies, with total assets reaching 59.7 trillion yen as of June 30, 2024. The firm has developed proprietary platforms that enhance trading efficiency and reduce transaction costs, contributing to a 30.2% increase in net revenue, amounting to 454.4 billion yen for the same period.

Strong brand reputation

Nomura's strong brand reputation is underscored by its long-standing history and global presence. The company's brand value is reflected in its total equity, which stood at 3.56 trillion yen as of June 30, 2024. The firm's commitment to integrity and client service has established it as a trusted partner in the financial services industry.

Extensive global network

With operations in over 30 countries, Nomura's extensive global network allows it to serve a diverse client base. The company reported net revenue from its Wholesale division of 244.8 billion yen for the three months ended June 30, 2024, highlighting the benefits of its international reach.

Key Resource	Description	Financial Impact
Skilled financial professionals	Approximately 27,000 employees globally	Net income of 68.9 billion yen (Q2 2024)
Advanced trading technology	Proprietary trading platforms	Total assets of 59.7 trillion yen
Strong brand reputation	Established global presence	Total equity of 3.56 trillion yen
Extensive global network	Operations in over 30 countries	Net revenue from Wholesale of 244.8 billion yen (Q2 2024)

Nomura Holdings, Inc. (NMR) - Business Model: Value Propositions

Comprehensive financial solutions for clients

Nomura Holdings provides a wide range of financial services, including investment banking, asset management, and securities services. For the three months ended June 30, 2024, the total net revenue was 454.4 billion yen, reflecting a 30.2% increase from the previous year. This robust revenue growth is attributed to comprehensive service offerings that cater to various client needs, ranging from individual investors to large corporations.

Service Type	Net Revenue (Billion Yen)	% Change
Investment Banking	41.3	32.4
Asset Management	90.3	25.8
Securities Services	131.9	14.2

Expertise in emerging markets

Nomura's strategic focus on emerging markets has positioned it as a key player in these regions. The company reported significant increases in revenue from these markets, with a total revenue from the wholesale segment amounting to 244.8 billion yen for the three months ended June 30, 2024, up 28.3% from the prior year. This reflects Nomura's ability to leverage its expertise to navigate and capitalize on the growth opportunities present in emerging economies.

Personalized wealth management services

The transformation of Nomura’s Retail Division into the Wealth Management Division has strengthened its personalized service offerings. For the three months ended June 30, 2024, the Wealth Management Division achieved net revenue of 114.0 billion yen, a 23.8% increase year-over-year. The division emphasizes tailored financial solutions that address the unique needs of high-net-worth individuals, showcasing a commitment to personalized service.

Strong performance in investment returns

Nomura's investment management services have shown remarkable performance, with net revenue from this segment reaching 47.7 billion yen for the quarter ending June 30, 2024, up 79.7% from the same period last year. This growth underscores Nomura's effectiveness in delivering strong investment returns to its clients, enhancing its reputation as a reliable investment partner.

Investment Management Metrics	Value
Assets Under Management	92.5 trillion yen
Quarterly Net Income	68.9 billion yen
Return on Equity (Annualized)	8.1%

Nomura Holdings, Inc. (NMR) - Business Model: Customer Relationships

Dedicated client relationship managers

Nomura Holdings employs dedicated client relationship managers to enhance customer engagement. These managers focus on building long-term relationships with clients, ensuring personalized service. As of June 30, 2024, Nomura's Wealth Management Division reported net revenue of 114.0 billion yen, reflecting a 23.8% increase from the previous year, indicating effective client management strategies.

Regular financial advisory and consultation

Regular financial advisory services are a cornerstone of Nomura's client relationships. The company provides tailored consultations to meet the diverse needs of its clients. In the three months ended June 30, 2024, Nomura's Investment Management segment achieved net revenue of 47.7 billion yen, a significant 79.7% increase compared to the previous year, demonstrating the effectiveness of its advisory services.

Tailored investment strategies

Nomura is recognized for its tailored investment strategies, which are designed based on individual client profiles. In the same quarter, the firm reported assets under management totaling 92.5 trillion yen. This substantial figure underscores the success of its customized investment approaches, which cater to various risk appetites and investment goals.

Responsive customer service

Responsive customer service is integral to Nomura's operational framework. The company has invested in enhancing its customer service capabilities, which is reflected in the reduced average response time to client inquiries. For the three months ended June 30, 2024, Nomura's overall net income attributable to shareholders increased to 68.9 billion yen, up 195.5% from the prior year, suggesting that superior customer service contributes to higher client satisfaction and retention rates.

Type of Service	Net Revenue (Billion Yen)	Year-on-Year Change (%)
Wealth Management Division	114.0	23.8
Investment Management Segment	47.7	79.7
Assets Under Management	92.5 Trillion Yen	N/A
Net Income Attributable to NHI Shareholders	68.9	195.5

Nomura Holdings, Inc. (NMR) - Business Model: Channels

Direct sales through financial advisors

Nomura Holdings employs a network of financial advisors who provide personalized investment advice and financial planning services to clients. As of June 30, 2024, the Wealth Management Division reported a net revenue of 114.0 billion yen, reflecting a 23.8% increase compared to the previous year. This growth indicates the effectiveness of direct sales strategies in augmenting client relationships and enhancing service offerings.

Online trading platforms

Nomura's online trading platforms are critical for retail investors, allowing them to execute trades and manage their portfolios digitally. The company reported that the commissions from online trading activities contributed significantly to its revenue, with total commissions reaching 102.75 billion yen for the quarter ending June 30, 2024, marking a 24.1% increase year-over-year. The digital platform's user-friendly interface and robust trading tools have attracted a growing number of retail clients.

Institutional sales teams

Institutional sales teams at Nomura are dedicated to servicing large clients, including corporations, pension funds, and hedge funds. For the three months ended June 30, 2024, the Wholesale Division generated 244.8 billion yen in net revenue, an increase of 28.3% compared to the same period last year. This segment's performance underscores the importance of institutional sales in driving overall business growth.

Client seminars and workshops

Nomura conducts client seminars and workshops to educate clients on investment strategies and market trends. These events have been effective in building brand loyalty and enhancing client engagement. As of June 30, 2024, the company reported net income attributable to shareholders of 68.9 billion yen, a 195.5% increase from the previous year, partly attributable to improved client interactions through educational initiatives.

Channel	Net Revenue (June 30, 2024)	Year-over-Year Change
Direct Sales through Financial Advisors	114.0 billion yen	+23.8%
Online Trading Platforms	102.75 billion yen	+24.1%
Institutional Sales Teams	244.8 billion yen	+28.3%
Client Seminars and Workshops	Not specifically quantified	Contributed to overall increase in net income

Nomura Holdings, Inc. (NMR) - Business Model: Customer Segments

High-net-worth individuals

Nomura Holdings serves a significant segment of high-net-worth individuals (HNWIs) through its Wealth Management Division. As of June 30, 2024, the net revenue from this segment was 114.0 billion yen, reflecting a 23.8% increase compared to the same period in the previous year. The total assets under management for HNWIs were approximately 92.5 trillion yen.

Institutional investors

Institutional investors are another critical customer segment for Nomura. The company reported net revenue of 244.8 billion yen for the Wholesale Division, which includes services to institutional clients, marking a 28.3% increase year-over-year. Institutional clients benefit from Nomura's extensive market research and investment strategies tailored to their risk profiles and return expectations.

Corporations seeking investment banking services

Nomura provides investment banking services to corporate clients, focusing on mergers and acquisitions, capital raising, and advisory services. The fees from investment banking services reached 41.3 billion yen for the three months ended June 30, 2024, demonstrating a 32.4% increase compared to the previous year. This segment is crucial for generating advisory revenues and fostering long-term relationships with corporate clients.

Retail investors

The retail investor segment is served through Nomura's Wealth Management Division, which has undergone a rebranding to enhance its service offerings. The net revenue from retail operations was 71.7 billion yen, with a slight increase of 3.8% from the previous year. This segment focuses on providing investment products, financial planning, and retirement solutions to individual investors, catering to their diverse financial needs.

Customer Segment	Net Revenue (June 30, 2024)	Year-over-Year Change (%)	Assets Under Management
High-net-worth individuals	114.0 billion yen	23.8%	92.5 trillion yen
Institutional investors	244.8 billion yen	28.3%	N/A
Corporations (Investment Banking)	41.3 billion yen	32.4%	N/A
Retail investors	71.7 billion yen	3.8%	N/A

Nomura Holdings, Inc. (NMR) - Business Model: Cost Structure

Personnel costs for skilled workforce

Personnel costs represent a significant portion of Nomura Holdings' overall expenses. For the three months ended June 30, 2024, the compensation and benefits amounted to 184.5 billion yen, reflecting a 16.3% increase from 158.7 billion yen in the same period of the previous year.

Technology and infrastructure investments

Nomura's investments in technology and infrastructure are crucial for maintaining competitive advantage in the financial services sector. As of June 30, 2024, the expenses related to information processing and communications were 55.8 billion yen, representing a 5.6% rise from 52.8 billion yen in the prior year. Additionally, occupancy and related depreciation costs were recorded at 17.6 billion yen, up from 16.6 billion yen, showing a 6.2% increase.

Marketing and client acquisition expenses

Marketing and client acquisition remain essential for Nomura's growth strategy. For the three months ended June 30, 2024, business development expenses were 6.6 billion yen, compared to 6.1 billion yen in the previous year, reflecting a 7.0% increase.

Regulatory compliance costs

Compliance with regulatory requirements incurs significant costs. The non-interest expenses associated with regulatory compliance were part of the total 351.5 billion yen for the three months ended June 30, 2024, which marked a 16.2% increase from 302.6 billion yen in the previous year. This indicates the growing financial burden of maintaining compliance in a highly regulated environment.

Cost Category	Q2 2023 (billion yen)	Q2 2024 (billion yen)	% Change
Personnel Costs	158.7	184.5	16.3%
Information Processing & Communications	52.8	55.8	5.6%
Occupancy & Related Depreciation	16.6	17.6	6.2%
Business Development Expenses	6.1	6.6	7.0%
Non-Interest Expenses (Total)	302.6	351.5	16.2%

Nomura Holdings, Inc. (NMR) - Business Model: Revenue Streams

Fees from Asset Management Services

Nomura Holdings generated 90.3 billion yen in asset management and portfolio service fees for the three months ended June 30, 2024, reflecting a 25.8% increase compared to the previous year. The assets under management reached 92.5 trillion yen as of the same date.

Commissions from Trading Activities

For the same period, commissions from trading activities amounted to 102.8 billion yen, a rise of 24.1% year-over-year. This increase is indicative of higher trading volumes and improved market conditions.

Investment Banking Fees

Investment banking fees totaled 41.3 billion yen in the three months ending June 30, 2024, marking a significant jump of 32.4% from the prior year. This growth is attributed to increased advisory activities and capital market transactions.

Interest Income from Loans and Securities

Interest income, encompassing earnings from loans and securities, reached 788.6 billion yen for the quarter, representing a 43.5% increase year-over-year. This surge is driven by a favorable interest rate environment and a robust loan portfolio.

Revenue Stream	Amount (Billion Yen)	Year-over-Year Change (%)
Asset Management Fees	90.3	25.8
Commissions from Trading	102.8	24.1
Investment Banking Fees	41.3	32.4
Interest Income	788.6	43.5

Updated on 16 Nov 2024

Resources:

1. Nomura Holdings, Inc. (NMR) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Nomura Holdings, Inc. (NMR)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Nomura Holdings, Inc. (NMR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.