Nomura Raises Pretax Profit Target to ¥750bn, Eyes 10%–12% ROE
JPM•Nomura Holdings boosted its annual pretax income target to ¥750 billion by March 2031, up from a previous goal of ¥500 billion, and raised its ROE objective to 10%–12% from 8%–10%. The firm also unveiled $500 million in cost cuts through AI-enabled operations, while ruling out any major acquisitions.
1. Target Increase
Nomura increased its annual pretax income target to ¥750 billion by fiscal 2031, marking a 50% raise from its prior midterm goal of over ¥500 billion and reflecting record earnings this year.
2. ROE Guidance Revision
The enlarged profit goal is paired with a revised return on equity target of 10%–12% versus 8%–10% previously, aiming to sustain profitability improvements and align with shareholder return expectations.
3. Cost-Cutting Measures
Management outlined $500 million in cost reductions through AI-driven operational models and information technology architecture reviews, emphasizing strategic expense control alongside key growth investments.
4. Acquisition Strategy
Executive leadership confirmed that these targets exclude any large-scale acquisitions, signaling confidence in organic expansion across trading, investment banking and other existing business units.
