The Nomura Holdings, Inc. expects additional revenue of a few hundred million dollars for the current year. This was after the Moody’s Investor Service’s boosted its credit rating on Nomura, Japan’s biggest brokerage and investment banking corporation.
In the succeeding 18 months, the group will get $250 million yearly additional revenue. This detail was disclosed on Tuesday during an investor conference presentation in Tokyo. However, it did not provide further details on how the revenue increase expectations would be accomplished over the period.
The company’s higher ratings aid in reducing funding costs. From Baa1, its upgrade to Baa3 will also assist the company in expanding sales easier throughout the international fixed-income market. Currently, it is encountering more counterpart requirements, specifically among conservative clients like pension funds.
Considering the turnaround for the company that is engineered by Koji Nagai, Chief Executive Officer (CEO), and Moody’s also elevated Nomura’s Securities rating and its brokerage unit by two notches towards A3. This was the first-ever upgrade within 9 years.
Net profit of Nomura for the second quarter jumped 39% to 53 billion yen, a better-than-expected profit, and was helped by the attraction of more client assets, although Prime Minister Shinzo Abe’s fading enthusiasm over brokerage sales.