{"url_path":"/sec/nmr/10-k/2026/item-5","section_key":"item-5","section_title":"Item 5 Operating and Financial Review and Prospects","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-06-22","source_url":"https://www.sec.gov/Archives/edgar/data/1163653/0001193125-26-277134-index.html","accession_number":"0001193125-26-277134","cik":"0001163653","ticker":"NMR","issuer_name":"NOMURA HOLDINGS INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1163653/0001193125-26-277134-index.html","primary_entity_key":"0001163653","primary_entity_name":"NOMURA HOLDINGS INC"},"word_count":19439,"has_tables":true,"body_markdown":"Item 5. Operating and Financial Review and Prospects\n\nA. Operating Results.\n\nThis discussion and analysis contain forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of factors, including, but not limited to, those under Item 3.D. “Risk Factors” and elsewhere in this annual report.\n\nBusiness Environment\n\nDuring the year ended March 31, 2026, while the global economy as a whole remained on a recovery track, major sources of market volatility affecting Nomura included U.S. tariff policy; a mix of optimism and concern surrounding the AI-related sector; political events in Japan; and geopolitical developments such as the situation involving Iran.\n\nOn April 2, 2025, the U.S. government announced the planned imposition of “reciprocal tariffs” targeting countries worldwide, triggering a sharp global equity sell-off and heightening concerns over a potential shift away from dollar-denominated assets. However, the following week a “90-day suspension” of the measures was\n\n \n\n63\n\n##### Table of Contents\n\nannounced, and markets turned to a V-shaped recovery. AI-related stocks in particular led the U.S. equity market through summer 2025, while from early autumn 2025 signs of caution about overheating also began to emerge. In the foreign exchange market, the yen appreciated to ¥140 per U.S. dollar in April 2025 amid wariness of U.S. tariff policy, but thereafter weakened; since January 2026, despite heightened volatility, the exchange rate has generally remained within the ¥152–161 range.\n\nIn Japan, Prime Minister Ishiba announced his resignation in September 2025, and in October 2025, the Takaichi cabinet was formed following the presidential election of the Liberal Democratic Party (“LDP”). As the new government advocated “responsible proactive fiscal policy,” Japan saw a stronger trend towards rising stock prices, higher interest rates and a weaker yen. Prime Minister Takaichi further dissolved the House of Representatives in January 2026. In the general election held in February, the LDP won more than two-thirds of the seats on its own, attracting attention from overseas investors. Although the impact of tariffs became visible in certain industries, Japanese equities overall continued an upward trend as companies managed to secure profit growth, repeatedly setting new record highs; in October 2025, the Nikkei Stock Average surpassed ¥50,000. The index has remained at a high level in the ¥58,000–71,000 range since mid-April 2026.\n\nWith respect to monetary policy, the U.S. economy showed signs of a modest slowdown in employment, and the Federal Reserve announced rate cuts in each of September, October, and December 2025. In Japan, after confirming in its view that the impact of the U.S.-imposed tariffs was not significant, the Bank of Japan decided in December 2025 to raise interest rates for the first time since January 2025. Japan’s 10-year government bond yield strengthened its upward trend—surpassing 2% in December 2025—as markets priced in Japan’s exit from deflation and the continuation of rate hikes that would accompany it. Furthermore, since the end of February 2026, crude oil prices have risen sharply due to heightened instability in the Middle East, and, affected by this development, the yield on 10-year Japanese government bonds also rose, reaching 2.5% from the end of March through April and rising to 2.8% on May 18.\n\nOn the geopolitical front, events such as the Israeli and U.S. airstrikes on Iranian nuclear facilities in June 2025; U.S. military action in Venezuela in January 2026 (resulting in the capture of the Venezuelan President); and Israeli and U.S. airstrikes on Iran commencing in February 2026 (resulting in the death of the Iranian Supreme Leader) have contributed to market instability.\n\nExecutive Summary\n\n1. Overall results of business\n\nWe recognized net revenue of ¥2,167.7 billion during the year ended March 31, 2026, an increase of 14.5% from the previous year. Non-interest expenses increased by 14.6% to ¥1,627.9 billion, income before income taxes was ¥539.8 billion, and net income attributable to the shareholders of NHI was ¥362.1 billion. Return on equity was 10.1%. Earnings per Share* for the year ended March 31, 2026 was ¥118.99, an increase from ¥111.03 for the year ended March 31, 2025. We have decided to pay a dividend of ¥24 per share to shareholders of record as of March 31, 2026. As a result, the total annual dividend will be ¥51 per share for the year ended March 31, 2026.\n\n*Diluted net income attributable to NHI shareholders per share.\n\n2. Management’s assessment of key initiatives and achievements during the fiscal year\n\nDuring the year ended March 31, 2026, our initiatives to accelerate our recurring revenue-based business model, expand our stable earnings base, and deepen our global strategy made steady progress. These efforts have steadily translated into tangible results, further strengthening our profitability and business foundation. We also made solid progress toward realizing our management vision for 2030, “Reaching for Sustainable Growth,” and net income attributable to the shareholders of NHI for the year reached a record high.\n\n \n\n64\n\n##### Table of Contents\n\nWealth Management Division had its best performance since the division was established in the year ended March 31, 2002. Recurring revenue was at an all-time high and recurring revenue assets saw continued net inflows as we made further progress in our full-service asset management business. The recurring revenue cost coverage ratio rose to 72 percent, reflecting higher revenues and disciplined cost controls.\n\nIn Investment Management Division, assets under management climbed to ¥136.9 trillion and business revenue increased significantly, thanks to market factors, continued net inflows, and contributions from the overseas businesses we recently acquired.\n\nIn Wholesale Division, income before income taxes was at an all-time high, underpinned by growth in Global Markets and Investment Banking revenues.\n\nIn the Banking Division, loans outstanding and investment trust balances grew, resulting in higher revenues than last year.\n\n3. Capital policy and shareholder returns\n\nWe plan to maintain appropriate capital ratios and aim for sustainable growth through optimal capital allocation. As preparatory steps to achieve our management vision, while controlling cost levels, we are investing for growth to realize our management strategy of expanding the scope of our business from public into private markets, in order to balance investment and shareholder returns, and maximize shareholder value by improving productivity and expanding revenue sources.\n\nWe strive to pay dividends using a consolidated payout ratio of at least 40% of each semi-annual consolidated earnings as a key indicator. Additionally, we aim for a total payout ratio, which includes dividends and share buybacks, of at least 50%. The total amount of shareholder returns for each fiscal year is determined by comprehensively taking into account trends in the regulatory environment in Japan and overseas, including the strengthening of Basel regulations, as well as the consolidated results of our business divisions.\n\nFor further details of our dividend policy, refer to Item 5.B. “Liquidity and Capital Resources—Capital Management—Dividends.”\n\n4. Summary by Segment\n\nIn our Wealth Management Division, net revenue for the year ended March 31, 2026 increased by 12.5% from the previous year to ¥487.9 billion. Non-interest expenses increased by 6.2% to ¥283.9 billion. As a result, income before income taxes increased by 22.8% to ¥204.0 billion. We have worked to strengthen our wealth management services by enhancing our comprehensive service offerings in line with client needs to help our clients achieve the future they envision. Amid favorable market conditions and reflecting our keen understanding of client needs, there was an increase in flow revenue, mainly due to an increase in the sales of stocks and investment trusts, particularly through face-to-face channels. Additionally, there was also an increase in recurring revenue due to the expansion of Wealth Management client assets through our initiatives to provide consulting services on the entire asset bases of our clients, which we have been working on continuously.\n\nIn addition, we aim to build a sustainable client base and expand our business over the medium to long term by establishing contact points through workplace financial services, and we have been able to successfully increase the number of clients we provide services to, including the working generation. Going forward, we will provide a wide range of wealth management services, including face-to-face consulting, non-face-to-face services using digital tools, and workplace services that address asset building needs.\n\nIn our Investment Management Division, net revenue for the year ended March 31, 2026 increased by 34.3% from the previous year to ¥258.5 billion. Non-interest expenses increased by 65.5% to ¥170.2 billion. As a\n\n \n\n65\n\n##### Table of Contents\n\nresult, income before income taxes decreased by 1.4% to ¥88.3 billion. The Investment Management Division has aimed for business revenue growth by increasing assets under management and by providing higher value-added asset management services. Although the Japanese equity market experienced periods of adjustment at both the beginning and the end of the fiscal year, it generally remained above the level of the previous fiscal year overall. In addition, following the completion in December 2025 of the Macquarie Acquisition, assets under management as of the end of the period rose to a record high of ¥136.9 trillion. The average balance of assets under management during the fiscal year also increased from the previous fiscal year, contributing to the growth of business revenue. While fund outflows were recorded in the acquired business, net inflows for the fiscal year totaled ¥0.4 trillion, and positive net inflows were maintained on an overall basis. Supported by the expansion of assets under management, the asset management business delivered revenue growth, while the aircraft leasing business also contributed to higher earnings through the execution of high-quality deals, resulting in an increase in sales volume. As a result, business revenue, a stable source of revenue, reached a record high. In particular, alternative assets under management as of the end of the year ended March 31, 2026 increased from the end of the previous fiscal year to ¥3.6 trillion, supported by solid fund inflows and investment gains. In addition, the “Nomu Wrap Fund”, which enables investors to build well-balanced portfolios tailored to their investment styles, continued to attract stable inflows, with total net assets surpassing ¥1.5 trillion.\n\nIn our Wholesale Division, net revenue for the year ended March 31, 2026 increased by 9.9% from the previous year to ¥1,162.2 billion. Non-interest expenses increased by 7.9% to ¥961.7 billion. As a result, income before income taxes increased by 20.6% to ¥200.6 billion. In Global Markets, we continued to provide service and liquidity to our clients while maintaining tight risk control, as clients looked to rebalance and hedge their portfolios amid uncertain markets driven by macro-economic shifts, central banks’ policy actions and geopolitical developments. We delivered steady performance by monetizing client flows and market opportunities led by Equity Products, Securitized Products and International Wealth Management. In Investment Banking, though there were differences among regions, client activity was at a high level and we strived to meet our clients’ diversified needs through our services and solutions which led to an increase in the number of deals. Strong performances from Advisory and Equity Solutions in Japan, along with Advisory and Solutions including Equity Solutions and portions of lending in international regions resulted in an increase in revenue.\n\nIn our Banking Division, net revenue for the year ended March 31, 2026 increased by 14.3% from the previous year to ¥53.9 billion, but non-interest expenses increased by 29.5% to ¥39.9 billion. As a result, income before income taxes decreased by 14.3% to ¥14.0 billion. In addition to strengthened collaboration across divisions, the effects of business development and marketing activities have begun to materialize, and the KPIs we track, namely loans outstanding at The Nomura Trust and Banking Co., Ltd., investment trust balance at The Nomura Trust and Banking Co., Ltd., and assets under administration at Nomura Bank (Luxembourg) S.A., showed steady growth over the year. As a result, Banking Division revenues, which we position as a stable source of revenue, increased from the previous fiscal year. While expenses increased due to a core banking system renewal at The Nomura Trust and Banking Co., Ltd. and related initiatives, progress has been made in building the foundation necessary to enhance future product and service offerings.\n\nProgress on Key Performance Indicators (KPIs)\n\n«Management Indicators»\n\nReturn on Equity / Income before income taxes\n\nWe have set quantitative management targets for the fiscal year 2030, aiming to achieve an ROE of 8-10%+ and an income before income taxes of over ¥500 billion, as our most important management performance indicators, and have made steady progress in our initiatives. In May 2026, we updated these quantitative management targets for the fiscal year 2030 and set a goal to achieve an ROE of 10–12%+ and an income before income taxes of over ¥750 billion.\n\nAfter the introduction of the Corporate Governance Code in Japan, the importance of awareness of capital costs has increased among management of Japanese companies. In addition, under the framework of global\n\n \n\n66\n\n##### Table of Contents\n\nfinancial regulations, more effective use of capital is required. As a result, we believe that the optimal allocation of financial resources will become even more important for our Company in the future. Accordingly, beginning in the year ended March 31, 2021, we adopted ROE as a key management indicator, which management uses to track the progress of our sustainable business transformation, along with the revision of “Fundamental Management Policy” based on the approval at the Board of Directors meeting held in May 2020.\n\nROE is defined and calculated as net income attributable to NHI shareholders divided by average of the total shareholders’ equity at the beginning and end of the period. We believe that disclosure of ROE is useful to investors in that it helps them to assess business conditions and our effective use of capital to enhance corporate value.\n\nWe have set ROE target of 10-12%+ for the year ending March 31, 2031, reflecting the cost of capital for our Company. However, ROE may be of limited use in that it does not necessarily reflect financial soundness. In order to avoid the excessive pursuit of capital efficiency with the aim of improving ROE at the expense of financial soundness, we attach importance to the creation of corporate value, giving due consideration to financial soundness, and thereby improving ROE. ROE for the year ended March 31, 2026 increased to 10.1% from 10.0% for the prior fiscal year.\n\nIn addition, in order to achieve sustainable growth, we have set a quantitative management target for the year ending March 31, 2031 to achieve an income before income taxes of over ¥750 billion, so that it helps them to assess business conditions more concretely and enhance corporate value. For the year ended March 31, 2026, the income before income taxes was ¥539.8 billion.\n\nCommon equity Tier1 capital ratio\n\nThere are multiple global financial regulations that we must comply with, including capital regulations established by Basel Committee on Banking Supervision as interpreted and implemented by the FSA which have a direct impact on the way we conduct business. For this reason, we have set a target of maintaining a common equity Tier 1 capital ratio of at least 11%, so that we will take into consideration the financial soundness including certain buffer against severe market stress. In addition, we seek to achieve an optimal allocation of capital by balancing growth investments and shareholder returns, and have set a target range of a common equity Tier 1 capital ratio of 11% to 14%.\n\nOur common equity Tier 1 capital ratio decreased to 12.86% as of March 31, 2026, from 14.52% as of March 31, 2025. For further details, on the key capital requirements we must follow, see Item 5.B. “Liquidity and Capital Resources—Consolidated Regulatory Capital Requirements.”\n\n«Indicators by Business Segment»\n\nIn addition to the Group KPIs, our management also uses certain divisional specific KPIs to monitor and assess performance of the divisions.\n\nWealth Management\n\nWe have adopted the following key indicators in the Wealth Management Division to quantify the outcomes of our efforts and monitor our business: Recurring revenue assets; Net inflows of recurring revenue assets; Flow business clients; and Workplace Services; so that our management will be able to monitor the progress of our businesses and target sustainable and further business growth. We believe that disclosure of those indicators is useful to investors in that it helps them to assess the progress of the division’s client-facing activities as well as digest and understand our growth potential.\n\n \n\n67\n\n##### Table of Contents\n\n \n  \nTrillions of yen\n \n\n \n  \nMarch 31, 2024\n \n  \nMarch 31, 2025\n \n  \n% Change from\nprevious year\n \n \nMarch 31, 2026\n \n  \n% Change from\nprevious year\n \n\nRecurring revenue assets\n\n  \n¥\n23.0\n \n  \n¥\n23.5\n \n  \n \n2.3\n% \n \n¥\n27.9\n \n  \n \n18.8\n% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \nBillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nNet inflows of recurring revenue assets\n\n  \n¥\n  702.0\n \n  \n¥\n  1,374.0\n \n  \n \n95.7\n% \n \n¥\n1,495.1\n \n  \n \n8.8\n% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n  \nThousands\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nFlow business clients\n\n  \n \n1,692\n \n  \n \n1,644\n \n  \n \n(2.9\n)% \n \n \n1,741\n \n  \n \n5.9\n% \n\nWorkplace Services\n\n  \n \n3,627\n \n  \n \n3,883\n \n  \n \n7.0\n% \n \n \n4,142\n \n  \n \n6.7\n% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nRecurring Revenue Assets\n\nRecurring revenue assets are defined by adding related loans to the total amount of assets, such as investment trusts, discretionary investments, insurance, and level fee assets, for which management fees and other recurring fees are charged. The amount of related loans totaled approximately ¥1,114.7 billion as reported within Loans receivable in the consolidated balance sheets as of March 31, 2026. Total recurring revenue assets as of March 31, 2026, were ¥27.9 trillion, an increase of ¥4.4 trillion, or 18.8%, from ¥23.5 trillion as of March 31, 2025, due to initiatives to increase recurring revenue assets and market factors.\n\nNet Inflows of Recurring Revenue Assets\n\nNet inflows of recurring revenue assets are defined and calculated by subtracting the amount of sell-offs and outflows from the amount of purchase and inflows of recurring revenue assets, and is an index used to measure the expansion of recurring revenue assets excluding changes in market value. As a result of our success in establishing market presence in the Wealth Management business, the total net inflows of recurring revenue assets during the year ended March 31, 2026, were ¥1,495.1 billion, exceeding the ¥1,374.0 billion recorded for the year ended March 31, 2025, by 8.8%.\n\nFlow Business Clients\n\nThe number of flow business clients is defined as the total number of clients to whom we provide flow business, businesses that generate flow revenues, within the fiscal year and is a measure of the growth in the client base that is critical to realizing the growth in flow revenue. The number of flow business clients as of March 31, 2026, was approximately 1,741 thousand, which is 5.9% higher than the number as of March 31, 2025, which was 1,644 thousand. This increase resulted from an acceleration in accumulation toward the end of the fiscal year against the background of an active market environment.\n\nWorkplace Services\n\nWorkplace Services are defined as the sum of the number of workplace financial services provided, such as the number of members of employee stock ownership plans, accounts derived from the employee stock ownership (excluding current members) and corporate defined contribution (DC) pension plan subscribers, and is an index used to measure the expansion of the client base through workplace financial businesses. As of\n\n \n\n68\n\n##### Table of Contents\n\nMarch 31, 2026, the number of workplace services provided stood at 4,142 thousand. We achieved an expansion of 259 thousand, 6.7% increase from that of March 31, 2025, which was 3,883 thousand, mainly in terms of the\n\nincrease in members of employee stock ownership plans, and have expanded our client base which will lead to sustainable growth.\n\nInvestment Management\n\nWe have set the balance of assets under management and net inflows as key performance indicators for the Investment Management Division. The businesses in the Investment Management Division generally earn management or similar fees based on the amount of assets under management, meaning that revenue trends for these businesses tend to follow trends in the amount of assets under management, and our management considers this metric to be effective in monitoring the progress of these businesses. We also believe that it is an important indicator of how well investment products are received by investors. We believe that net inflows are an effective metric to monitor the progress of the division’s asset management businesses, excluding market factors from fluctuations in the balance of assets under management. It is an important indicator for ascertaining the effectiveness of the division’s measures to expand assets under management and thereby achieve its profit expansion target.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nNet inflow\n\n  \n¥\n3,760\n \n  \n¥\n2,648\n \n  \n \n(29.5\n)% \n \n¥\n443\n \n  \n \n(83.3)%\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \nTrillions of yen\n \n\n \n  \nMarch 31, 2024\n \n  \nMarch 31, 2025\n \n  \n% Change from\nprevious year\n \n \nMarch 31, 2026\n \n  \n% Change from\nprevious year\n \n\nThe balance of assets under management\n\n  \n¥\n89.0\n \n  \n¥\n89.3\n \n  \n \n0.4\n% \n \n¥\n136.9\n \n  \n \n53.3%\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet inflow\n\nNet inflows are calculated by subtracting cash outflows from cash inflows. For these purposes, cash outflows do not include outflows from distributions. During the year ended March 31, 2026, Net inflows reached ¥0.4 trillion. In the investment trust business, there were inflows into Money Reserve Funds and other money market funds, alternative investments and balanced funds. In the investment advisory and international businesses, there were outflows mainly from active mutual funds in the U.S. and European public asset management business of Macquarie Group Limited, which was acquired in December 2025, reflecting industry trends in U.S.\n\nThe balance of assets under management\n\nThe balance of assets under management is calculated by deducting overlapping assets within the Investment Management division from the simple aggregate (gross) of assets under management of asset management companies within Investment Management division. Assets under management as of March 31, 2026, reached a record high of ¥136.9 trillion, reflecting both the Japanese equity market remaining above the level of the previous fiscal year and the addition of assets under management from the acquired business.\n\nWholesale\n\nWe have adopted a cost-to-income ratio and a revenue to modified RWA ratio as additional key performance indicators in our Wholesale Division. We believe that disclosure of these indicators would be useful\n\n \n\n69\n\n##### Table of Contents\n\nfor investors to assess progress in terms of cost and resource efficiency. Additionally, we use these indicators to evaluate our business based on progress on cost savings initiatives and return on resources.\n\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n \n2025\n \n \n% Change from\nprevious year\n \n \n2026\n \n \n% Change from\nprevious year\n \n\nCost-to-income ratio\n\n  \n \n94\n% \n \n \n84\n% \n \n \n(10\n)% \n \n \n83\n% \n \n \n(1\n)% \n\nRevenue/modified RWA\n\n  \n \n6.8\n% \n \n \n7.6\n% \n \n \n0.8\n% \n \n \n7.4\n% \n \n \n(0.2\n)% \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCost-to-income ratio\n\nThe cost-to-income ratio for the Wholesale Division is calculated by dividing non-interest expenses for the division for a given reporting period by net revenue generated by the division for the same period, calculated consistently, in each case, with our segment presentation for the division. It is monitored at a divisional level to track operating margins for the business. The ratio improved during the year ended March 31, 2026 compared to the previous year as Wholesale costs increased 8% while revenues grew 10%. Wholesale Revenues reached an all-time high since establishment of the division in April 2010, with record years in both Global Markets and Investment Banking (since relevant comparisons possible from the year ended March 31, 2017). Cost increase was primarily driven by increase in bonus provisions linked to performance and higher trading volume. The ratio improved during the year ended March 31, 2025 compared to the previous year as Wholesale costs increased 10% while revenues grew 22%. Revenues increased on a year-over-year basis across Global Markets and Investment Banking. Global Markets uptick was driven by strong performance across Equity Products, Execution Services, Securitized Products, and International Wealth Management business, whereas Investment Banking witnessed significant growth in ECM, M&A and Solutions businesses. Cost increase was primarily driven by increased revenue-linked trading activity and higher performance related costs.\n\nRevenue to modified Risk Weighted Asset (RWA) ratio\n\nThe revenue to modified RWA ratio for the Wholesale division is calculated by dividing net revenue generated by our Wholesale Division for a given reporting period (in the case of net revenue for the Wholesale Division for periods shorter than a full fiscal year, on an annualized basis) by the average balance of modified RWA used by the Wholesale Division for the same period. The revenue to modified RWA ratio is monitored to track our revenue earning capacity against risk resources deployed. Modified RWA is the total of (i) average daily risk-weighted assets as calculated and presented under Basel regulations as interpreted and implemented by the FSA and (ii) an adjustment equal to the regulatory adjustment to risk-based capital calculated and presented under Basel regulations as interpreted and implemented by the FSA divided by our internal capital ratio target of 12.5% (daily average for the accounting period), which we use to estimate the amount of deductions to RWA generated by the division. The revenue to modified RWA as we calculate and present it may differ from similarly titled measures presented by our competitors due to the approach and methodologies used for calculation. See Item 5.B. “Liquidity and Capital Resources—Consolidated Regulatory Capital Requirements” for further details on the applicable methodologies. The conversion of Wholesale RWA to modified RWA is based on adjustments reflecting our internal minimum capital ratio target. Moreover, the usefulness of this ratio may be limited in that the adjustment applied to RWA, which is intended to capture the appropriate amount of RWA to attribute to our businesses (as opposed to RWA as calculated for regulatory capital purposes), is an estimate incorporating our internal risk tolerance; however, this adjustment may not appropriately reflect the actual regulatory capital impact of the charged assets that are used by our business. Revenue to modified RWA decreased marginally for the year ended March 31, 2026 compared to the previous year, as the increase in RWA post Basel III finalization slightly exceeded the growth in Wholesale revenue. Both Global Markets and Investment Banking registered record-high revenues for the year ended March 31, 2026 (since relevant comparisons possible from FY2016/17). Revenue to modified RWA increased for the year ended March 31, 2025 compared to the previous year, as the growth in Wholesale revenue offset the impact of increase in RWA. Revenue increased across both Global Markets and Investment Banking, driven by strong performance in Equity Products, Execution Services,\n\n \n\n70\n\n##### Table of Contents\n\nSecuritized Products and International Wealth Management, as well as growth in ECM, M&A and Solutions businesses.\n\nBanking\n\nThe Banking Division has designated the following key performance indicators (KPIs): (i) Loan Outstanding (The Nomura Trust and Banking Co., Ltd.(“NTB”)), (ii) Investment Trust balance (NTB), and (iii) Assets under administration (Nomura Bank (Luxembourg) S.A. (“NBL”)). Given that this division comprises the banking business, which generates income from loans and securities investments funded primarily by deposits, and the trust and agency business, which earns fee income by administering clients’ assets, including investment trusts, management believes that these indicators are effective for monitoring the progress of the division’s business and also consider them useful for investors in assessing its progress.\n\n \n\n \n \nTrillions of yen\n \n\n \n \nMarch 31, 2025\n \n \nMarch 31, 2026\n \n \n% Change from\nprevious year\n \n\nLoan Outstanding (NTB)\n\n \n¥\n1.04\n \n \n¥\n1.18\n \n \n \n12.7\n% \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n \nTrillions of yen\n \n\n \n \nMarch 31, 2025\n \n \nMarch 31, 2026\n \n \n% Change from\nprevious year\n \n\nInvestment Trust balance (NTB)\n\n \n¥\n40.5\n \n \n¥\n42.9\n \n \n \n5.8\n% \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n \nBillions of dollars\n \n\n \n \nMarch 31, 2025\n \n \nMarch 31, 2026\n \n \n% Change from\nprevious year\n \n\nAssets under administration (NBL)\n\n \n$\n56.6\n \n \n$\n64.6\n \n \n \n14.1\n% \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLoan Outstanding (NTB)\n\nLoan Outstanding (NTB) represents the total outstanding balance of loans extended by NTB to individual and corporate customers. NTB’s primary loan products are securities-backed loans, with flagship offerings comprising PB (Private Banking) Loans—provided in person to high-net-worth clients—and Nomura Web Loan, which enables borrowers to complete lending and repayment entirely via an online banking service.\n\nThis figure corresponds to the figure for “Loans” disclosed on the asset side of NTB’s standalone balance sheet. Such figure is disclosed on the basis of regulatory standards based on accounting principles generally accepted in Japan and does not necessarily correspond to “Loans receivable” as disclosed by NHI on its consolidated balance sheet, which is prepared on the basis of U.S. GAAP.\n\nDriven by new customer acquisition and marketing initiatives, Loan Outstanding (NTB) was ¥1,177 billion as of March 31, 2026, an increase of 12.7% from ¥1,044 billion as of March 31, 2025.\n\nInvestment Trust balance (NTB)\n\nInvestment Trust balance (NTB) represents the total portion of assets under custody represented by investment trusts for which NTB serves as trustee. Investment Trust balance (NTB) fluctuates based on net inflows/outflows (the difference between subscriptions and redemptions) as well as changes in asset prices.\n\nThis KPI is calculated as the total net asset value of each fund as of its respective most recent fiscal period end. Such fiscal period end may not align with the date shown, and, for funds with only annual or semi-annual accounting, such period-end may not have occurred, and the amount may not have been updated, during the relevant quarter.\n\n \n\n71\n\n##### Table of Contents\n\nThe amount shown corresponds to the figure for “Investment Trusts” disclosed on the liability side of NTB’s standalone Statement of Trust Account. Such figure, which is disclosed on the basis of Japanese regulatory standards, is not included in NHI’s consolidated balance sheet.\n\nAs of March 31, 2026, the Investment Trust balance (NTB) was ¥42.9 trillion, driven by new inflows of funds and favorable market conditions, representing a 5.8% increase from ¥40.5 trillion as of March 31, 2025.\n\nAssets under administration (NBL)\n\nAssets under administration (NBL) represents the aggregate balance of Cayman Islands- and Luxembourg-domiciled investment trusts and other funds for which NBL is responsible for calculating the net asset value, accounting treatment, order processing, nominee management, and preparing various reports. Assets under administration (NBL) fluctuates based on net inflows/outflows (the difference between subscriptions and redemptions) as well as changes in asset prices.\n\nAs of March 31, 2026, Assets under administration (NBL) was $64.6 billion, an increase of 14.1% from $56.6 billion as of March 31, 2025. Continued inflows into both public and private-placement funds investing in private assets have driven the increase in Assets under administration (NBL).\n\nResults of Operations\n\nOverview\n\nThe following table provides selected consolidated statements of income information for the years ended March 31, 2024, 2025 and 2026.\n\n \n\n \n \nMillions of yen, except percentages\n \n\n \n \nYear ended March 31\n \n\n \n \n2024\n \n \n2025\n \n \n% Change from\nprevious year\n \n \n2026\n \n \n% Change from\nprevious year\n \n\nNon-interest revenues:\n\n \n\n \n\n \n\n \n\n \n\nCommissions\n\n \n¥\n364,095\n \n \n¥\n407,011\n \n \n \n11.8\n% \n \n¥\n455,289\n \n \n \n11.9\n% \n\nFees from investment banking\n\n \n \n173,265\n \n \n \n212,234\n \n \n \n22.5\n \n \n \n200,548\n \n \n \n(5.5\n) \n\nAsset management and portfolio service fees\n\n \n \n310,154\n \n \n \n378,196\n \n \n \n21.9\n \n \n \n468,600\n \n \n \n23.9\n \n\nNet gain on trading\n\n \n \n491,611\n \n \n \n580,099\n \n \n \n18.0\n \n \n \n696,894\n \n \n \n20.1\n \n\nGain on private equity and debt investments\n\n \n \n11,877\n \n \n \n7,634\n \n \n \n(35.7\n) \n \n \n12,604\n \n \n \n65.1\n \n\nGain (loss) on investments in equity securities\n\n \n \n9,612\n \n \n \n444\n \n \n \n(95.4\n) \n \n \n13,066\n \n \n \n— \n \n\nOther\n\n \n \n175,824\n \n \n \n223,264\n \n \n \n27.0\n \n \n \n241,845\n \n \n \n8.3\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Non-interest revenues\n\n \n \n1,536,438\n \n \n \n1,808,882\n \n \n \n17.7\n \n \n \n2,088,846\n \n \n \n15.5\n \n\nNet interest revenue\n\n \n \n25,562\n \n \n \n83,603\n \n \n \n227.1\n \n \n \n78,867\n \n \n \n(5.7\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet revenue\n\n \n \n1,562,000\n \n \n \n1,892,485\n \n \n \n21.2\n \n \n \n2,167,713\n \n \n \n14.5\n \n\nNon-interest expenses\n\n \n \n1,288,150\n \n \n \n1,420,521\n \n \n \n10.3\n \n \n \n1,627,892\n \n \n \n14.6\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIncome before income taxes\n\n \n \n273,850\n \n \n \n471,964\n \n \n \n72.3\n \n \n \n539,821\n \n \n \n14.4\n \n\nIncome tax expense\n\n \n \n96,630\n \n \n \n124,709\n \n \n \n29.1\n \n \n \n165,439\n \n \n \n32.7\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet income\n\n \n¥\n177,220\n \n \n¥\n347,255\n \n \n \n95.9\n% \n \n¥\n374,382\n \n \n \n7.8\n% \n\nLess: Net income attributable to noncontrolling interests\n\n \n \n11,357\n \n \n \n6,519\n \n \n \n(42.6\n) \n \n \n12,253\n \n \n \n88.0\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet income attributable to NHI shareholders\n\n \n¥\n165,863\n \n \n¥\n340,736\n \n \n \n105.4\n% \n \n¥\n362,129\n \n \n \n6.3\n% \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nReturn on equity\n\n \n \n5.1\n% \n \n \n10.0\n% \n \n\n \n \n10.1\n% \n \n\n \n\n72\n\n##### Table of Contents\n\nNet revenue increased from the year ended March 31, 2025 to the year ended March 31, 2026. This increase was primarily driven by Asset management and portfolio service fees from our Wealth Management Division and Investment Management Division and Net gain on trading from our Wholesale Division. The increase in Commissions was primarily due to an increase in commissions received from brokerage for equity and equity-related products. Fees from investment banking decreased during the year ended March 31, 2026 primarily due to a decrease in revenue from underwriting and sales commission. Asset management and portfolio service fees increased as the average of assets under management increased during the year ended March 31, 2026. Net gain on trading increased during the year ended March 31, 2026, primarily due to an increase in revenue from the Fixed Income and Equities businesses. Net gain on trading also included total gains of ¥5.0 billion attributable to changes in Nomura’s own creditworthiness with respect to derivative liabilities primarily due to a widening of Nomura’s credit spread. Gain (loss) on investments in equity securities increased during the year ended March 31, 2026, primarily due to a result of market appreciation of the underlying investment during the year ended March 31, 2026. Gain (loss) on investments in equity securities includes both realized and unrealized gains and losses on investments in equity securities held for operating purposes which are our investments in unaffiliated companies, which we hold on a long-term basis in order to promote existing and potential business relationships. Other increased during the year ended March 31, 2026, primarily due to a gain on sale from the transfer of land and buildings located in Takanawa 2-chome, Minato-ku, Tokyo.\n\nNet revenue increased from the year ended March 31, 2024 to the year ended March 31, 2025. This increase was primarily driven by Asset management and portfolio service fees from our Wealth Management Division and Investment Management Division and Net gain on trading from our Wholesale Division. The increase in Commissions was primarily due to an increase in commissions received from distribution of investment trusts. Fees from investment banking increased during the year ended March 31, 2025 primarily due to an increase in revenue from underwriting and sales commission and M&A advisory fee. Asset management and portfolio service fees increased as the average of assets under management increased during the year ended March 31, 2025. Net gain on trading increased during the year ended March 31, 2025, primarily due to an increase in revenue from the Fixed Income and Equities businesses. Net gain on trading also included total gains of ¥2.3 billion attributable to changes in Nomura’s own creditworthiness with respect to derivative liabilities primarily due to a widening of Nomura’s credit spread. Gain (loss) on investments in equity securities decreased during the year ended March 31, 2025, primarily due to a result of market correction of the underlying investment during the year ended March 31, 2025. Gain (loss) on investments in equity securities includes both realized and unrealized gains and losses on investments in equity securities held for operating purposes which are our investments in unaffiliated companies, which we hold on a long-term basis in order to promote existing and potential business relationships. Other increased during the year ended March 31, 2025, primarily due to foreign exchange gains.\n\nNet interest revenue fluctuates by the balance and structure of total assets and liabilities, which includes trading assets and financing and lending transactions, and term structure and volatility of interest rates. Net interest revenue is an integral component of trading activity. In assessing the profitability of our overall business and of our Global Markets business in particular, we view Net interest revenue and Non-interest revenues in aggregate. For the year ended March 31, 2026, interest and dividend revenue, including a dividend from our investment in American Century Investments decreased by 9%, and interest expense decreased by 9% from the year ended March 31, 2025. As a result, Net interest revenue for the year ended March 31, 2026 decreased from the year ended March 31, 2025. For the year ended March 31, 2025, interest and dividend revenue, including a dividend from our investment in American Century Investments increased by 12%, and interest expense increased by 10% from the year ended March 31, 2024. As a result, Net interest revenue for the year ended March 31, 2025 increased from the year ended March 31, 2024.\n\nNon-interest expenses for the year ended March 31, 2026 increased from the year ended March 31, 2025, primarily due to increase in Compensation and benefits.\n\nNon-interest expenses for the year ended March 31, 2025 increased from the year ended March 31, 2024, primarily due to increase in Compensation and benefits.\n\n \n\n73\n\n##### Table of Contents\n\nWe are subject to various taxes in Japan and we have applied the Group Tax Sharing system. The Group Tax Sharing system is only available for a national tax. Our domestic effective statutory tax rate was approximately 31% for the year ended March 31, 2024, 2025 and 2026, respectively. Furthermore, as a result of revision to Japanese domestic tax laws on March 31, 2025, Nomura’s effective statutory tax rate will increase from 31% to 31.5% for fiscal years ending on or after April 1, 2026. Our foreign subsidiaries are subject to the income taxes of the jurisdictions in which they operate, which are generally lower than those in Japan. The Company’s effective statutory tax rate in any one year is therefore dependent on our geographic mix of profits and losses and also on the specific tax treatment applicable in each jurisdiction.\n\nIncome tax expense for the year ended March 31, 2026, represented an effective tax rate of 30.6%. Nomura adopted ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” prospectively for the year ended March 2026. By the adoption of this ASU, the tax rate reconciliation is presented using the Japanese national statutory tax rate as the starting point for reconciling to the effective tax rate. The significant factors causing the difference between the effective tax rate of 30.6% and the Japanese national statutory tax rate of 25.6% were due to effect of local tax in Japan by 5.4%, the changes in deferred tax valuation allowances in U.S. which decreased the effective tax rate by 8.1%, partially offset by the changes in the increment of non-deductible expenses related to stock-based compensation which increased the effective tax rate by 2.0%, and deferred tax valuation allowance in U.K. which increased the effective tax rate by 1.8%.\n\nIncome tax expense for the year ended March 31, 2025, represented an effective tax rate of 26.4%. The significant factors causing the difference between the effective tax rate of 26.4% and the effective statutory tax rate of 31% were the changes in deferred tax valuation allowances which decreased the effective tax rate by 5.3%.\n\nIncome tax expense for the year ended March 31, 2024, represented an effective tax rate of 35.3%. The significant factors causing the difference between the effective tax rate of 35.3% and the effective statutory tax rate of 31% were the increment of non-deductible expenses which increased the effective tax rate by 6.0%, partially offset by the non-taxable income which decreased the effective tax rate by 2.5%.\n\nResults by Business Segment\n\nNomura established a new Banking Division on April 1, 2025. Accordingly, our operating management and management reporting are prepared based on the Wealth Management, the Investment Management, the Wholesale and the Banking segments. We disclose business segment information in accordance with this structure from the year ended March 31, 2026. Amounts for prior periods have been reclassified to conform to the presentation for the year ended March 31, 2026.\n\nNet gain (loss) related to economic hedging transactions, a part of realized gain (loss) on investments in equity securities held for operating purposes, our share of equity in the earnings of affiliates, corporate items and other financial adjustments are included as “Other” operating results outside of business segments in our segment information.\n\nA part of unrealized gain (loss) on certain investments in equity securities held for operating purposes is classified as a reconciling item outside of our segment information. The following segment information should be read in conjunction with Item 4.B “Business Overview” of this annual report and Note 23 “Segment and geographic information” in our consolidated financial statements included in this annual report. The reconciliation of our segment results of operations and consolidated financial statements is provided in Note 23 “Segment and geographic information” in our consolidated financial statements included in this annual report.\n\n \n\n74\n\n##### Table of Contents\n\nWealth Management\n\nOperating Results of Wealth Management\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nNon-interest revenue\n\n  \n¥\n380,563\n \n  \n¥\n422,617\n \n  \n \n11.1\n% \n \n¥\n473,282\n \n  \n \n12.0\n% \n\nNet interest revenue\n\n  \n \n6,461\n \n  \n \n10,934\n \n  \n \n69.2\n \n \n \n14,624\n \n  \n \n33.7\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue\n\n  \n \n387,024\n \n  \n \n433,551\n \n  \n \n12.0\n \n \n \n487,906\n \n  \n \n12.5\n \n\nNon-interest expenses\n\n  \n \n268,035\n \n  \n \n267,369\n \n  \n \n(0.2\n) \n \n \n283,882\n \n  \n \n6.2\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome before income taxes\n\n  \n¥\n118,989\n \n  \n¥\n166,182\n \n  \n \n39.7\n% \n \n¥\n204,024\n \n  \n \n22.8\n% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue increased from the year ended March 31, 2025 to the year ended March 31, 2026 primarily due to an increase in commissions earned from brokerage commissions and the distribution of investment trusts.\n\nNet revenue increased from the year ended March 31, 2024 to the year ended March 31, 2025 primarily due to an increase in asset management fees.\n\nNon-interest expenses increased from the year ended March 31, 2025 to the year ended March 31, 2026, primarily due to an increase in personnel expenses driven by increases in bonuses.\n\nNon-interest expenses were largely unchanged from the year ended March 31, 2024 to the year ended March 31, 2025.\n\nThe following table shows the breakdown of Wealth Management non-interest revenues for the year ended March 31, 2024, 2025 and 2026.\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nCommissions\n\n  \n¥\n173,461\n \n  \n¥\n183,598\n \n  \n \n5.8\n% \n \n¥\n217,533\n \n  \n \n18.5\n% \n\nBrokerage commissions\n\n  \n \n80,239\n \n  \n \n72,249\n \n  \n \n(10.0\n) \n \n \n95,993\n \n  \n \n32.9\n \n\nCommissions for distribution of investment trusts\n\n  \n \n54,857\n \n  \n \n65,852\n \n  \n \n20.0\n \n \n \n66,057\n \n  \n \n0.3\n \n\nOther commissions\n\n  \n \n38,365\n \n  \n \n45,497\n \n  \n \n18.6\n \n \n \n55,483\n \n  \n \n21.9\n \n\nNet gain on trading\n\n  \n \n55,919\n \n  \n \n52,483\n \n  \n \n(6.1\n) \n \n \n49,331\n \n  \n \n(6.0\n) \n\nFees from investment banking\n\n  \n \n23,066\n \n  \n \n27,323\n \n  \n \n18.5\n \n \n \n25,550\n \n  \n \n(6.5\n) \n\nAsset management fees\n\n  \n \n124,446\n \n  \n \n156,732\n \n  \n \n25.9\n \n \n \n176,098\n \n  \n \n12.4\n \n\nOthers\n\n  \n \n3,671\n \n  \n \n2,481\n \n  \n \n(32.4\n) \n \n \n4,770\n \n  \n \n92.3\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNon-interest revenues\n\n  \n¥\n380,563\n \n  \n¥\n422,617\n \n  \n \n11.1\n% \n \n¥\n473,282\n \n  \n \n12.0\n% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCommissions increased from the year ended March 31, 2025 to the year ended March 31, 2026, primarily due to an increase in brokerage commissions. Asset management fees increased from the year ended March 31, 2025 to the year ended March 31, 2026, due to an increase in recurring revenue.\n\nCommissions increased from the year ended March 31, 2024 to the year ended March 31, 2025, primarily due to an increase in commissions for distribution of investment trusts. Asset management fees increased from the year ended March 31, 2024 to the year ended March 31, 2025, due to an increase in recurring revenue.\n\n \n\n75\n\n##### Table of Contents\n\nWealth Management Client Assets\n\nThe following table presents amounts and details regarding the composition of Wealth Management client assets as of March 31, 2025 and 2026. Wealth Management client assets consist of clients’ assets under management and assets relating to variable annuity insurance products.\n\n \n\n \n  \nTrillions of yen\n \n\n \n  \nYear ended March 31, 2025\n \n\n \n  \nBalance at\nbeginning of year\n \n  \nGross inflows\n \n  \nGross outflows\n \n \nMarket\nappreciation /\n(depreciation)\n \n \nBalance at\nend of year\n \n\nEquities\n\n  \n¥\n102.5\n \n  \n¥\n41.1\n \n  \n¥\n(38.4\n) \n \n¥\n(13.0\n) \n \n¥\n92.2\n \n\nDebt securities\n\n  \n \n20.1\n \n  \n \n20.5\n \n  \n \n(23.7\n) \n \n \n3.8\n \n \n \n20.7\n \n\nEquity investment trusts\n\n  \n \n13.3\n \n  \n \n5.4\n \n  \n \n(5.0\n) \n \n \n(0.4\n) \n \n \n13.3\n \n\nDebt investment trusts\n\n  \n \n7.3\n \n  \n \n0.7\n \n  \n \n(0.5\n) \n \n \n(0.8\n) \n \n \n6.7\n \n\nOverseas mutual funds\n\n  \n \n1.8\n \n  \n \n0.7\n \n  \n \n(0.2\n) \n \n \n(0.3\n) \n \n \n2.0\n \n\nOthers\n\n  \n \n8.6\n \n  \n \n2.5\n \n  \n \n(1.1\n) \n \n \n(1.1\n) \n \n \n8.9\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n153.6\n \n  \n¥\n70.9\n \n  \n¥\n(68.9\n) \n \n¥\n(11.8\n) \n \n¥\n143.8\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n \n  \nTrillions of yen\n \n\n \n  \nYear ended March 31, 2026\n \n\n \n  \nBalance at\nbeginning of year\n \n  \nGross inflows\n \n  \nGross outflows\n \n \nMarket\nappreciation /\n(depreciation)\n \n \nBalance at\nend of year\n \n\nEquities\n\n  \n¥\n92.2\n \n  \n¥\n31.0\n \n  \n¥\n(31.1\n) \n \n¥\n25.5\n \n \n¥\n117.6\n \n\nDebt securities\n\n  \n \n20.7\n \n  \n \n19.4\n \n  \n \n(16.7\n) \n \n \n(1.8\n) \n \n \n21.6\n \n\nEquity investment trusts\n\n  \n \n13.3\n \n  \n \n4.1\n \n  \n \n(3.4\n) \n \n \n2.1\n \n \n \n16.1\n \n\nDebt investment trusts\n\n  \n \n6.7\n \n  \n \n0.5\n \n  \n \n(0.3\n) \n \n \n0.1\n \n \n \n7.0\n \n\nOverseas mutual funds\n\n  \n \n2.0\n \n  \n \n0.6\n \n  \n \n(0.1\n) \n \n \n0.2\n \n \n \n2.7\n \n\nOthers\n\n  \n \n8.9\n \n  \n \n1.7\n \n  \n \n(0.8\n) \n \n \n1.0\n \n \n \n10.8\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n143.8\n \n  \n¥\n57.3\n \n  \n¥\n(52.4\n) \n \n¥\n27.1\n \n \n¥\n175.8\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nWealth Management client assets increased from March 31, 2025 to March 31, 2026. The balances of our clients’ equity and equity-related products increased from March 31, 2025 to ¥117.6 trillion as of March 31, 2026, mainly due to market appreciation during the year. The balances of our clients’ investment trusts increased by ¥3.8 trillion from ¥22.0 trillion as of March 31, 2025 to ¥25.8 trillion as of March 31, 2026.\n\nWealth Management client assets decreased from March 31, 2024 to March 31, 2025. The balances of our clients’ equity and equity-related products decreased from March 31, 2024 to ¥92.2 trillion as of March 31, 2025, mainly due to market depreciation during the year. The balances of our clients’ investment trusts decreased by ¥0.4 trillion from ¥22.4 trillion as of March 31, 2024 to ¥22.0 trillion as of March 31, 2025.\n\n \n\n76\n\n##### Table of Contents\n\nInvestment Management\n\nOperating Results of Investment Management\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nNon-interest revenue\n\n  \n¥\n149,575\n \n  \n¥\n181,010\n \n  \n \n21.0\n% \n \n¥\n248,388\n \n  \n \n37.2\n% \n\nNet interest revenue\n\n  \n \n4,568\n \n  \n \n11,463\n \n  \n \n150.9\n \n \n \n10,128\n \n  \n \n(11.6\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue\n\n  \n \n154,143\n \n  \n \n192,473\n \n  \n \n24.9\n \n \n \n258,516\n \n  \n \n34.3\n \n\nNon-interest expenses\n\n  \n \n93,945\n \n  \n \n102,882\n \n  \n \n9.5\n \n \n \n170,219\n \n  \n \n65.5\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome before income taxes\n\n  \n¥\n60,198\n \n  \n¥\n89,591\n \n  \n \n48.8\n% \n \n¥\n88,297\n \n  \n \n(1.4\n)% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue increased from the year ended March 31, 2025 to the year ended March 31, 2026, primarily due to an increase in gains recognized in respect of our investment in American Century Investments and an increase in management fee revenue in the asset management businesses.\n\nNet revenue increased from the year ended March 31, 2024 to the year ended March 31, 2025, primarily due to an increase in gains recognized in respect of our investment in American Century Investments and an increase in management fee revenue in the asset management businesses.\n\nNon-interest expenses increased from the year ended March 31, 2025 to the year ended March 31, 2026, primarily due to expenses related to acquired businesses and the recognition of impairment losses on equity interests in investees.\n\nNon-interest expenses increased from the year ended March 31, 2024 to the year ended March 31, 2025, primarily due to an increase in personnel expenses driven by increases in bonuses.\n\nThe breakdown of net revenue for Investment Management is as follows.\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nBusiness revenue(1)\n\n  \n¥\n137,249\n \n  \n¥\n163,688\n \n  \n \n19.3\n% \n \n¥\n223,699\n \n  \n \n36.7\n% \n\nInvestment gain/ loss(2)\n\n  \n \n16,894\n \n  \n \n28,785\n \n  \n \n70.4\n \n \n \n34,817\n \n  \n \n21.0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue\n\n  \n¥\n154,143\n \n  \n¥\n192,473\n \n  \n \n24.9\n% \n \n¥\n258,516\n \n  \n \n34.3\n% \n\n \n\n \n\n(1)\n\nConsists of divisional revenue, other than investment gain/loss, including revenue generated by our asset management business (excluding gains and losses related to our investment in American Century Investments), revenues generated by Nomura Babcock & Brown Co., Ltd.’s aircraft leasing-related businesses and management fee revenues generated from our private equity and other investment businesses\n\n(2)\n\nConsists of divisional revenue attributable to investments (including fair value fluctuations, funding cost and dividends), including gains and losses related to our investment in American Century Investments, our investments held in our private equity and other investment businesses.\n\n \n\n77\n\n##### Table of Contents\n\nThe following table presents assets under management of each principal Nomura entity within our Investment Management Division as of March 31, 2025 and 2026.\n\n \n\n \n \nBillions of yen\n \n\n \n \nYear ended March 31, 2025\n \n\n \n \nBalance at\nbeginning of year\n \n \nAdjustment in\nbeginning\nbalance(1)\n \n \nGross inflows\n \n \nGross outflows\n \n \nMarket\nappreciation /\n(depreciation)\nand other\n \n \nBalance at\nend of year\n \n\nNomura Asset Management Co., Ltd .\n\n \n¥\n91,011\n \n \n¥\n(2,837\n) \n \n¥\n34,509\n \n \n¥\n(33,369\n) \n \n¥\n(1,264\n) \n \n¥\n88,050\n \n\nNomura Corporate Research and Asset Management Inc. etc\n\n \n \n5,588\n \n \n \n0\n \n \n \n1,091\n \n \n \n(1,382\n) \n \n \n249\n \n \n \n5,546\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCombined total\n\n \n \n96,599\n \n \n \n(2,837\n) \n \n \n35,600\n \n \n \n(34,751\n) \n \n \n(1,015\n) \n \n \n93,596\n \n\nShared across group companies\n\n \n \n(7,598\n) \n \n \n2,837\n \n \n \n(952\n) \n \n \n1,552\n \n \n \n(97\n) \n \n \n(4,258\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n89,001\n \n \n¥\n0\n \n \n¥\n34,648\n \n \n¥\n(33,199\n) \n \n¥\n(1,112\n) \n \n¥\n89,338\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n \n \nBillions of yen\n \n\n \n \nYear ended March 31, 2026\n \n\n \n \nBalance at\nbeginning of year\n \n \nAdjustment(2)\n \n \nGross inflows\n \n \nGross outflows\n \n \nMarket\nappreciation /\n(depreciation)\nand other\n \n \nBalance at\nend of year\n \n\nNomura Asset Management Co., Ltd .\n\n \n¥\n88,050\n \n \n¥\n412\n \n \n¥\n39,000\n \n \n¥\n(38,735\n) \n \n¥\n22,551\n \n \n¥\n111,278\n \n\nNomura Asset Management International, etc.\n\n \n \n5,546\n \n \n \n28,648\n \n \n \n2,249\n \n \n \n(3,912\n) \n \n \n1,584\n \n \n \n34,115\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCombined total\n\n \n \n93,596\n \n \n \n29,060\n \n \n \n41,249\n \n \n \n(42,647\n) \n \n \n24,135\n \n \n \n145,393\n \n\nShared across group companies\n\n \n \n(4,258\n) \n \n \n(3,536\n) \n \n \n(1,163\n) \n \n \n1,555\n \n \n \n(1,088\n) \n \n \n(8,490\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n89,338\n \n \n¥\n25,524\n \n \n¥\n40,086\n \n \n¥\n(41,092\n) \n \n¥\n23,047\n \n \n¥\n136,903\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n \n(1)\n\nCombined total of Nomura Asset Management Co., Ltd. and Shared across group companies assets decreased similarly due to the reorganization in the Americas made on April 1, 2024.\n\n \n(2)\n\nCombined total of Nomura Asset Management International, etc and Shared across group companies increased similarly due to the transfer of Nomura Fiduciary Research & Consulting Co., Ltd. to the Investment Management Division effective April 1, 2025. Also, Combined total of Nomura Asset Management International, etc and Shared across group companies increased due to the assets under management of Macquarie Group’s Public Asset Management business acquired on December 1, 2025.\n\nAssets under management increased primarily due to the Macquarie Acquisition during the year ended March 31, 2026.\n\nAssets under management remained largely unchanged the year ended March 31, 2024 to the year ended March 31, 2025.\n\n \n\n78\n\n##### Table of Contents\n\nThe following table presents Nomura Asset Management Co., Ltd.’s market share, in terms of net asset value, of the Japanese publicly offered investment trusts market as of March 31, 2024, 2025 and 2026.\n\n \n\n \n  \nMarch 31\n \n\n \n  \n2024\n \n \n2025\n \n \n2026\n \n\nTotal of publicly offered investment trusts\n\n  \n \n26\n% \n \n \n25\n% \n \n \n25\n% \n\nEquity investment trusts\n\n  \n \n25\n% \n \n \n24\n% \n \n \n23\n% \n\nDebt investment trusts\n\n  \n \n44\n% \n \n \n44\n% \n \n \n43\n% \n\n \n\n(Source) Nomura’s own calculation based on data published by the Investment Trusts Association, Japan.\n\nInvestment trust assets included in assets under management by Nomura Asset Management Co., Ltd. were ¥78.0 trillion as of March 31, 2026, which represents a ¥15.9 trillion (26%) increase compared to March 31, 2025. This increase was due to net inflows of ¥0.6 trillion and market appreciation of ¥15.3 trillion. The balances of certain investment trusts, including TOPIX Exchange Traded Fund and NIKKEI 225 Exchange Traded Fund also increased.\n\nInvestment trust assets included in assets under management by Nomura Asset Management Co., Ltd. were ¥62.1 trillion as of March 31, 2025, which represents a ¥0.8 trillion (1%) decrease compared to March 31, 2024. This decrease was due to net inflows of ¥1.6 trillion and market depreciation of ¥2.4 trillion. Despite such market depreciation, the balances of certain investment trusts, including TOPIX Banks Exchange Traded Fund and Nomu Wrap Fund increased.\n\nWholesale\n\nOperating Results of Wholesale\n\nThe operating results of our Wholesale Division comprise the combined results of our Global Markets and Investment Banking businesses. Our Global Markets business comprises our Fixed Income and Equities businesses.\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n \n% Change from\nprevious year\n \n\nNon-interest revenue\n\n  \n¥\n875,664\n \n \n¥\n1,015,803\n \n  \n \n16.0\n% \n \n¥\n1,168,966\n \n \n \n15.1\n% \n\nNet interest revenue\n\n  \n \n(9,517\n) \n \n \n42,135\n \n  \n \n— \n \n \n \n(6,737\n) \n \n \n— \n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet revenue\n\n  \n \n866,147\n \n \n \n1,057,938\n \n  \n \n22.1\n \n \n \n1,162,229\n \n \n \n9.9\n \n\nNon-interest expenses\n\n  \n \n812,236\n \n \n \n891,656\n \n  \n \n9.8\n \n \n \n961,662\n \n \n \n7.9\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIncome before income taxes\n\n  \n¥\n53,911\n \n \n¥\n166,282\n \n  \n \n208.4\n% \n \n¥\n200,567\n \n \n \n20.6\n% \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet revenue increased from the year ended March 31, 2025 to the year ended March 31, 2026. Fixed Income revenues in Global Markets increased due to a strong performance in spread products. Equities revenues in Global Markets increased primarily due to increase in equity products and execution services. Investment Banking revenues increased primarily due to strong performance in Japan and overseas during the year ended March 31, 2026.\n\nNet revenue increased from the year ended March 31, 2024 to the year ended March 31, 2025. Fixed Income revenues in Global Markets increased due to a strong performance in spread products. Equities revenues in Global Markets increased primarily due to increase in equity products and execution services. Investment Banking revenues increased primarily due to strong performance in Japan and overseas during the year ended March 31, 2025.\n\n \n\n79\n\n##### Table of Contents\n\nNon-interest expenses increased from the year ended March 31, 2025 to the year ended March 31, 2026, primarily due to the impact of a weaker yen on the translation of non-yen denominated overseas expenses, and increase in compensation expenses compared to previous year.\n\nNon-interest expenses increased from the year ended March 31, 2024 to the year ended March 31, 2025, primarily due to the impact of a weaker yen on the translation of non-yen denominated overseas expenses, and increase in compensation expenses compared to previous year.\n\nThe following table presents a breakdown of net revenue for Wholesale for the year ended March 31, 2024, 2025 and 2026.\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nWholesale net revenue:\n\n  \n\n  \n\n  \n\n \n\n  \n\nGlobal Markets net revenue\n\n  \n¥\n707,113\n \n  \n¥\n874,622\n \n  \n \n23.7\n% \n \n¥\n968,122\n \n  \n \n10.7\n% \n\nInvestment Banking net revenue\n\n  \n \n159,034\n \n  \n \n183,316\n \n  \n \n15.3\n \n \n \n194,107\n \n  \n \n5.9\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue\n\n  \n¥\n866,147\n \n  \n¥\n1,057,938\n \n  \n \n22.1\n% \n \n¥\n1,162,229\n \n  \n \n9.9\n% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nGlobal Markets\n\nWe have a proven track record in sales and trading of debt securities, equity securities, and foreign exchange, as well as derivative products referencing these financial instruments to domestic and overseas institutional investors. In response to the increasingly diverse and complex needs of our clients, we continue to enhance our trading and product origination capabilities to offer superior products not only to domestic and overseas institutional investors, but also to our Wealth Management and Investment Management Divisions. This cross-divisional approach also extends to Investment Banking, where close collaboration leads to high value-adding solutions for our clients. These ties enable us to identify the types of products of interest for investors and develop and deliver products that meet their needs. We continue to develop extensive ties with institutional investors in Japan and international markets, as well as wealthy investors, public-sector agencies, and regional financial institutions in Japan, and government agencies, financial institutions, and corporations around the world.\n\nNet revenue increased from the year ended March 31, 2025 to the year ended March 31, 2026. In our Fixed Income businesses, Net revenue increased from ¥499,203 million for the year ended March 31, 2025 to ¥508,958 million for the year ended March 31, 2026, primarily due to a strong performance in spread products compared to the previous year. In our Equities business, Net revenue increased from ¥375,419 million for the year ended March 31, 2025 to ¥459,165 million for the year ended March 31, 2026, primarily due to strong performance in equity products and execution services compared to the previous year.\n\nNet revenue increased from the year ended March 31, 2024 to the year ended March 31, 2025. In our Fixed Income businesses, Net revenue increased from ¥420,268 million for the year ended March 31, 2024 to ¥499,203 million for the year ended March 31, 2025, primarily due to a strong performance in spread products compared to the previous year. In our Equities business, Net revenue increased from ¥286,845 million for the year ended March 31, 2024 to ¥375,419 million for the year ended March 31, 2025, primarily due to strong performance in equity products and execution services compared to the previous year.\n\nInvestment Banking\n\nWe provide a broad range of investment banking services, such as underwriting and advisory activities. We underwrite offerings of debt, equity and other financial instruments in major financial markets, such as Asia,\n\n \n\n80\n\n##### Table of Contents\n\nEurope and the U.S. We have been enhancing our M&A and financial advisory expertise to secure more high-profile deals both across and within regions. We develop and forge solid relationships with clients on a long-term basis by providing extensive resources in a seamless fashion to facilitate bespoke solutions.\n\nNet revenue increased from the year ended March 31, 2025 to the year ended March 31, 2026, primarily due to increases in financing and solutions-related transactions.\n\nNet revenue increased from the year ended March 31, 2024 to the year ended March 31, 2025, primarily due to increases in underwriting and sales commission and M&A advisory fee during the year.\n\nBanking\n\nThe Banking Division comprises NTB and NBL. The division conducts (i) the banking business, under which funds procured primarily through deposits and other funding sources are deployed to loans and investments in securities to generate interest income, and (ii) the trust and agency business, under which fee and commission income is earned by providing asset administration and related services to clients, including investment trusts.\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n% Change from\nprevious year\n \n \n2026\n \n  \n% Change from\nprevious year\n \n\nNon-interest revenue\n\n  \n¥\n35,244\n \n  \n¥\n36,344\n \n  \n \n3.1\n% \n \n¥\n42,081\n \n  \n \n15.8\n% \n\nNet interest revenue\n\n  \n \n7,617\n \n  \n \n10,828\n \n  \n \n42.2\n \n \n \n11,837\n \n  \n \n9.3\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue\n\n  \n \n42,861\n \n  \n \n47,172\n \n  \n \n10.1\n \n \n \n53,918\n \n  \n \n14.3\n \n\nNon-interest expenses\n\n  \n \n27,755\n \n  \n \n30,815\n \n  \n \n11.0\n \n \n \n39,902\n \n  \n \n29.5\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome before income taxes\n\n  \n¥\n15,106\n \n  \n¥\n16,357\n \n  \n \n8.3\n% \n \n¥\n14,016\n \n  \n \n(14.3\n)% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue increased from the year ended March 31, 2025 to the year ended March 31, 2026 primarily due to increases in loan outstanding, investment trust balance and assets under administration.\n\nNet revenue increased from the year ended March 31, 2024 to the year ended March 31, 2025 primarily due to increases in loan outstanding, investment trust balance and assets under administration.\n\nNon-interest expenses increased from the year ended March 31, 2025 to the year ended March 31, 2026, primarily due to an increase in depreciation and amortization expenses associated with the renewal of the core banking system.\n\nNon-interest expenses were largely unchanged from the year ended March 31, 2024 to the year ended March 31, 2025, primarily due to an increase in personnel expenses driven by increases in bonuses.\n\n \n\n81\n\n##### Table of Contents\n\nThe following table presents select figures from NTB’s non-consolidated balance sheet as of March 31, 2025 and 2026, which has been prepared in accordance with accounting principles generally accepted in Japan and with regulatory requirements applicable to NTB, and is not directly comparable to Nomura’s consolidated balance sheets, which are prepared in accordance with accounting principles generally accepted in the United States.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nMarch 31, 2025\n \n  \nMarch 31, 2026\n \n\nAssets\n\n  \n\n  \n\nSecurities\n\n  \n¥\n310.7\n \n  \n¥\n423.1\n \n\nLoans(1)\n\n  \n \n1,044.4\n \n  \n \n1,177.2\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal assets\n\n  \n \n2,075.4\n \n  \n \n2,607.4\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nLiabilities\n\n  \n\n  \n\nDeposits\n\n  \n¥\n1,357.3\n \n  \n¥\n1,334.5\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNTB’s total assets were ¥2.6 trillion as of March 31, 2026, an increase of 25.6% from ¥2.1 trillion as of March 31, 2025. During this period, Loans increased by 12.7%, primarily driven by the expansion of transactional customers and advertising and promotional activities, and Securities increased by 36.2%.\n\n(1) Consists of the total balance of loans originated by NTB, such as private banking loans and the “Nomura Web Loan” securities-backed loan product. Such figure does not necessarily correspond to “Loans receivable” as disclosed by Nomura on its consolidated balance sheets.\n\nThe following table presents NTB’s trust assets as of March 31, 2025 and 2026. These figures represent preliminary estimates as of the date of the filing of this annual report and are subject to revision.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nMarch 31, 2025\n \n  \nMarch 31, 2026\n \n\nDesignated money trusts\n\n  \n¥\n404.9\n \n  \n¥\n374.3\n \n\nSpecified money trusts\n\n  \n \n4,417.8\n \n  \n \n4,609.2\n \n\nPension trusts\n\n  \n \n0.8\n \n  \n \n0.2\n \n\nInvestment trusts\n\n  \n \n     40,541.4\n \n  \n \n     42,899.2\n \n\nPecuniary trusts other than money trusts\n\n  \n \n1,064.7\n \n  \n \n1,275.6\n \n\nSecurities trusts\n\n  \n \n3,754.7\n \n  \n \n6,290.8\n \n\nMoney claim trusts\n\n  \n \n0.8\n \n  \n \n0.7\n \n\nComposite trusts\n\n  \n \n1,111.7\n \n  \n \n1,403.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n51,296.8\n \n  \n¥\n56,853.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal trust assets were ¥56.9 trillion as of March 31, 2026, an increase of 10.8% from ¥51.3 trillion as of March 31, 2025. During this period, Investment trusts increased by 5.8%, and Securities trusts increased by 67.5%.\n\nThe following table presents a breakdown of NBL’s Assets under administration by source as of March 31, 2025 and 2026, distinguishing amounts entrusted by (i) the Nomura Group and (ii) clients other than the Nomura Group (“Other Clients”).\n\n \n\n \n  \nBillions of U.S. Dollar\n \n\n \n  \nMarch 31, 2025\n \n  \nMarch 31, 2026\n \n\nNomura Group\n\n  \n$\n   29.9\n \n  \n$\n   35.3\n \n\nOther Clients\n\n  \n \n26.7\n \n  \n \n29.2\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n$\n56.6\n \n  \n$\n64.5\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n82\n\n##### Table of Contents\n\nNBL’s assets under administration was $64.6 billion as of March 31, 2026, an increase of 14.1% from $56.6 billion as of March 31, 2025. During this period, amounts entrusted by the Nomura Group increased by 18.3%, while amounts entrusted by Other Clients increased by 9.4%.\n\nOther Operating Results\n\nOther operating results include net gain (loss) related to economic hedging transactions, a part of realized gain (loss) on investments in equity securities held for operating purposes, equity in earnings of affiliates, corporate items, and other financial adjustments. See Note 23 “Segment and geographic information” in our consolidated financial statements included within this annual report.\n\nIncome before income taxes in Other operating results were ¥35,987 million for the year ended March 31, 2024, ¥35,101 million for the year ended March 31, 2025 and ¥24,646 million for the year ended March 31, 2026, which decreased from the year ended March 31, 2025 to the year ended March 31, 2026.\n\nOther operating results for the year ended March 31, 2026 include the positive impact of our own creditworthiness on derivative liabilities which resulted in gains of ¥1,627 million and losses from changes in counterparty credit spreads on derivative assets of ¥2,637 million.\n\nOther operating results for the year ended March 31, 2025 include the positive impact of our own creditworthiness on derivative liabilities which resulted in gains of ¥1,443 million and gains from changes in counterparty credit spreads on derivative assets of ¥828 million.\n\nOther operating results for the year ended March 31, 2024 include the negative impact of our own creditworthiness on derivative liabilities which resulted in losses of ¥12,068 million and gains from changes in counterparty credit spreads on derivative assets of ¥7,248 million.\n\nSummary of Regional Contribution\n\nFor a summary of our net revenue, income (loss) before income taxes and long-lived assets by geographic region, see Note 23 “Segment and geographic information” in our consolidated financial statements included in this annual report.\n\nSelected Financial Data\n\nThe following table presents selected financial information as of and for the years ended March 31, 2022, 2023, 2024, 2025 and 2026, derived from our consolidated financial statements.\n\n \n\n \n  \nMillions of yen, except per share data and percentages\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2022\n \n  \n2023\n \n  \n2024\n \n  \n2025\n \n  \n2026\n \n\nStatement of income data:\n\n  \n\n  \n\n  \n\n  \n\n  \n\nRevenue\n\n  \n¥\n1,593,999\n \n  \n¥\n2,486,726\n \n  \n¥\n4,157,294\n \n  \n¥\n4,736,743\n \n  \n¥\n4,758,486\n \n\nInterest expense\n\n  \n \n230,109\n \n  \n \n1,151,149\n \n  \n \n2,595,294\n \n  \n \n2,844,258\n \n  \n \n2,590,773\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet revenue\n\n  \n \n1,363,890\n \n  \n \n1,335,577\n \n  \n \n1,562,000\n \n  \n \n1,892,485\n \n  \n \n2,167,713\n \n\nNon-interest expenses\n\n  \n \n1,137,267\n \n  \n \n1,186,103\n \n  \n \n1,288,150\n \n  \n \n1,420,521\n \n  \n \n1,627,892\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome before income taxes\n\n  \n \n226,623\n \n  \n \n149,474\n \n  \n \n273,850\n \n  \n \n471,964\n \n  \n \n539,821\n \n\nIncome tax expense\n\n  \n \n80,090\n \n  \n \n57,798\n \n  \n \n96,630\n \n  \n \n124,709\n \n  \n \n165,439\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet income\n\n  \n¥\n146,533\n \n  \n¥\n91,676\n \n  \n¥\n177,220\n \n  \n¥\n347,255\n \n  \n¥\n374,382\n \n\n \n\n83\n\n##### Table of Contents\n\n \n  \nMillions of yen, except per share data and percentages\n \n\n \n  \nYear ended March 31\n \n\n \n  \n2022\n \n \n2023\n \n \n2024\n \n \n2025\n \n \n2026\n \n\nLess: Net income (loss) attributable to noncontrolling interests\n\n  \n \n3,537\n \n \n \n(1,110\n) \n \n \n11,357\n \n \n \n6,519\n \n \n \n12,253\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet income attributable to NHI shareholders\n\n  \n¥\n142,996\n \n \n¥\n92,786\n \n \n¥\n165,863\n \n \n¥\n340,736\n \n \n¥\n362,129\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance sheet data (period end):\n\n  \n\n \n\n \n\n \n\n \n\nTotal assets\n\n  \n¥\n43,412,156\n \n \n¥\n47,771,802\n \n \n¥\n55,147,203\n \n \n¥\n56,802,170\n \n \n¥\n62,645,925\n \n\nTotal NHI shareholders’ equity\n\n  \n \n2,914,605\n \n \n \n3,148,567\n \n \n \n3,350,189\n \n \n \n3,470,879\n \n \n \n3,707,868\n \n\nTotal equity\n\n  \n \n2,972,803\n \n \n \n3,224,142\n \n \n \n3,448,513\n \n \n \n3,580,999\n \n \n \n3,854,915\n \n\nCommon stock\n\n  \n \n594,493\n \n \n \n594,493\n \n \n \n594,493\n \n \n \n594,493\n \n \n \n594,493\n \n\nPer share data:\n\n  \n\n \n\n \n\n \n\n \n\nNet income attributable to NHI shareholders—basic\n\n  \n¥\n46.68\n \n \n¥\n30.86\n \n \n¥\n54.97\n \n \n¥\n115.30\n \n \n¥\n123.08\n \n\nNet income attributable to NHI shareholders—diluted\n\n  \n \n45.23\n \n \n \n29.74\n \n \n \n52.69\n \n \n \n111.03\n \n \n \n118.99\n \n\nTotal NHI shareholders’ equity(1)\n\n  \n \n965.80\n \n \n \n1,048.24\n \n \n \n1,127.72\n \n \n \n1,174.10\n \n \n \n1,277.99\n \n\nCash dividends(1)\n\n  \n \n22.00\n \n \n \n17.00\n \n \n \n23.00\n \n \n \n57.00\n \n \n \n51.00\n \n\nCash dividends in USD(2)\n\n  \n$\n0.18\n \n \n$\n0.13\n \n \n$\n0.15\n \n \n$\n0.38\n \n \n$\n0.32\n \n\nWeighted average number of shares outstanding (in thousands)(3)\n\n  \n \n3,063,524\n \n \n \n3,006,744\n \n \n \n3,017,128\n \n \n \n2,955,205\n \n \n \n2,942,280\n \n\nReturn on equity(4):\n\n  \n \n5.1\n% \n \n \n3.1\n% \n \n \n5.1\n% \n \n \n10.0\n% \n \n \n10.1\n% \n\n \n\n(1)\n\nCalculated using the number of shares outstanding at year end.\n\n(2)\n\nCalculated using the Japanese Yen - U.S. Dollar exchange rate as of the respective fiscal year end date, the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York.\n\n(3)\n\nThe number shown is used to calculate basic earnings per share.\n\n(4)\n\nCalculated as net income attributable to NHI shareholders divided by total NHI shareholders’ equity.\n\nRegulatory Capital Requirements\n\nMany of our business activities are subject to statutory capital requirements, including those of Japan, the U.S., the U.K. and certain other countries in which we operate. For further discussion on statutory capital requirements, see Note 20 “Regulatory requirements” in our consolidated financial statements included in this annual report.\n\nTranslation Exposure\n\nA significant portion of our business is conducted in currencies other than Japanese Yen - most significantly, U.S. Dollars, British pounds and Euros. We prepare financial statements of each of our consolidated subsidiaries in its functional currency, which is the currency of the primary economic environment in which the entity operates. Translation exposure is the risk arising from the effect of fluctuations in exchange rates on the net assets of our foreign subsidiaries. Translation exposure is not recognized in our consolidated statements of income unless and until we dispose of, or liquidate, the relevant foreign subsidiary.\n\nAssets and Liabilities Associated with Investment and Financial Services Business\n\nExposure to Certain Financial Instruments and Counterparties\n\nMarket conditions continue to impact numerous products to which we have certain exposures. We also have exposures to Special Purpose Entities (“SPEs”) and others in the normal course of business.\n\n \n\n84\n\n##### Table of Contents\n\nLeveraged Finance\n\nWe provide loans to clients in connection with leveraged buy-outs and leveraged buy-ins. As this type of financing is usually initially provided through a commitment, we have both funded and unfunded exposures on these transactions.\n\nThe following table presents our exposure to leveraged finance transactions, separately showing funded and unfunded commitments by geographic location of the target company as of March 31, 2026.\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nMarch 31, 2026\n \n\n \n  \nFunded\n \n  \nUnfunded\n \n  \nTotal\n \n\nEurope\n\n  \n¥\n26,844\n \n  \n¥\n178,906\n \n  \n¥\n205,750\n \n\nAmericas\n\n  \n \n35,888\n \n  \n \n375,156\n \n  \n \n411,044\n \n\nAsia and Oceania\n\n  \n \n11,221\n \n  \n \n87,495\n \n  \n \n98,716\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n73,953\n \n  \n¥\n641,557\n \n  \n¥\n715,510\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSpecial Purpose Entities (“SPEs”)\n\nOur involvement with these entities includes structuring, underwriting, distributing and selling debt instruments and beneficial interests issued by these entities, subject to prevailing market conditions. In connection with our securitization and equity derivative activities, we also act as a transferor of financial assets to these entities, as well as, underwriter, distributor and seller of asset-repackaged financial instruments issued by these entities. We retain, purchase and sell variable interests in SPEs in connection with our market-making, investing and structuring activities. Our other types of involvement with SPEs include guarantee agreements and derivative contracts.\n\nFor further discussion on Nomura’s involvement with variable interest entities, see Note 7 “Securitizations and Variable Interest Entities” in our consolidated financial statements included in this annual report.\n\nAccounting Developments\n\nSee Note 1 “Summary of accounting policies: New accounting pronouncements adopted during the current year” in our consolidated financial statements included in this annual report.\n\nDeferred Tax Assets\n\nDetails of deferred tax assets and liabilities\n\nThe following table presents details of deferred tax assets and liabilities reported within Other assets—Other and Other liabilities, respectively, in the consolidated balance sheets as of March 31, 2026.\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nMarch 31, 2026\n \n\nDeferred tax assets\n\n  \n\nDepreciation, amortization and valuation of fixed assets\n\n  \n¥\n43,007\n \n\nInvestments in subsidiaries and affiliates\n\n  \n \n3,604\n \n\nValuation of financial instruments\n\n  \n \n128,286\n \n\nAccrued pension and severance costs\n\n  \n \n5,224\n \n\nOther accrued expenses and provisions\n\n  \n \n118,047\n \n\nOperating losses\n\n  \n \n477,481\n \n\nLease liabilities\n\n  \n \n39,964\n \n\nOther\n\n  \n \n20,477\n \n\n  \n\n \n\n \n\n \n\nGross deferred tax assets\n\n  \n \n836,090\n \n\n \n\n85\n\n##### Table of Contents\n\n \n  \nMillions of yen\n \n\n \n  \nMarch 31, 2026\n \n\nLess — Valuation allowances\n\n  \n \n(588,426\n) \n\n  \n\n \n\n \n\n \n\nTotal deferred tax assets\n\n  \n \n247,664\n \n\n  \n\n \n\n \n\n \n\nDeferred tax liabilities\n\n  \n\nInvestments in subsidiaries and affiliates\n\n  \n \n129,826\n \n\nValuation of financial instruments\n\n  \n \n98,372\n \n\nUndistributed earnings of foreign subsidiaries\n\n  \n \n17,816\n \n\nValuation of fixed assets and intangible assets\n\n  \n \n58,329\n \n\nRight-of-use assets\n\n  \n \n35,219\n \n\nOther\n\n  \n \n13,030\n \n\n  \n\n \n\n \n\n \n\nTotal deferred tax liabilities\n\n  \n \n352,592\n \n\n  \n\n \n\n \n\n \n\nNet deferred tax assets (liabilities)\n\n  \n¥\n(104,928\n) \n\n  \n\n \n\n \n\n \n\nCalculation method of deferred tax assets\n\nIn accordance with U.S. GAAP, we recognize deferred tax assets to the extent we believe that it is more likely than not that a benefit will be realized. A valuation allowance is provided for tax benefits available to us, which are not deemed more likely than not to be realized.\n\nB. Liquidity and Capital Resources.\n\nFunding and Liquidity Management\n\nOverview\n\nWe define liquidity risk as the risk of loss arising from difficulty in securing the necessary funding or from a significantly higher cost of funding than normal levels due to deterioration of the Nomura Group’s creditworthiness or deterioration in market conditions. This risk could arise from Nomura-specific or market-wide events such as inability to access the secured or unsecured debt markets, a deterioration in our credit ratings, a failure to manage unplanned changes in funding requirements, a failure to liquidate assets quickly and with minimal loss in value, or changes in regulatory capital restrictions which may prevent the free flow of funds between different group entities. Our global liquidity risk management policy is based on liquidity risk appetite formulated by the Executive Management Board (“EMB”). Nomura’s liquidity risk management, under market-wide stress and in addition, under Nomura-specific stress, seeks to ensure enough continuous liquidity to meet all funding requirements and unsecured debt obligations across one year and 30-day periods, respectively, without raising funds through unsecured funding or through the liquidation of assets. We are required to meet regulatory notice on the Liquidity Coverage Ratio (“LCR”) and the Net Stable Funding Ratio (“NSFR”) issued by the Financial Services Agency (“FSA”).\n\nWe have in place a number of liquidity risk management frameworks that enable us to achieve our primary liquidity objective. These frameworks include (1) Centralized Control of Residual Cash and Maintenance of Liquidity Portfolio; (2) Utilization of Unencumbered Assets as Part of Our Liquidity Portfolio; (3) Appropriate Funding and Diversification of Funding Sources and Maturities Commensurate with the Composition of Assets; (4) Management of Credit Lines to Nomura Group Entities; (5) Implementation of Liquidity Stress Tests; and (6) Contingency Funding Plan.\n\nOur EMB has the authority to make decisions concerning group liquidity management. The Chief Financial Officer (“CFO”) has the operational authority and responsibility over our liquidity management based on decisions made by the EMB.\n\n \n\n86\n\n##### Table of Contents\n\n1. Centralized Control of Residual Cash and Maintenance of Liquidity Portfolio.\n\nWe centrally control residual cash held at Nomura Group entities for effective liquidity utilization purposes. As for the usage of funds, the CFO decides the maximum amount of available funds, provided without posting any collateral, for allocation within Nomura and the EMB allocates the funds to each business division. Global Treasury monitors usage by businesses and reports to the EMB.\n\nIn order to enable us to transfer funds smoothly between group entities, we limit the issuance of securities by regulated broker-dealers or banking entities within the Nomura Group and seek to raise unsecured funding primarily through the Company or through unregulated subsidiaries. The primary benefits of this strategy include cost minimization, wider investor name recognition and greater flexibility in providing funding to various subsidiaries across the Nomura Group.\n\nTo meet any potential liquidity requirement, we maintain a liquidity portfolio, managed by Global Treasury apart from other assets, in the form of cash and highly liquid, unencumbered securities that may be sold or pledged to provide liquidity. As of March 31, 2026, our liquidity portfolio was ¥10,699.6 billion which sufficiently met liquidity requirements under the stress scenarios.\n\nThe following table presents a breakdown of our liquidity portfolio by type of financial assets as of March 31, 2025 and 2026 and averages maintained for the years ended March 31, 2025 and 2026. Yearly averages are calculated using month-end amounts.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nAverage for\nyear ended\nMarch 31, 2025\n \n  \nMarch 31,2025\n \n  \nAverage for\nyear ended\nMarch 31, 2026\n \n  \nMarch 31, 2026\n \n\nCash, cash equivalents and time deposits(1)\n\n  \n¥\n 4,395.5\n \n  \n¥\n4,196.3\n \n  \n¥\n4,719.2\n \n  \n¥\n3,937.0\n \n\nGovernment debt securities\n\n  \n \n4,765.2\n \n  \n \n5,475.4\n \n  \n \n5,134.2\n \n  \n \n5,958.5\n \n\nOthers(2)\n\n  \n \n501.3\n \n  \n \n485.0\n \n  \n \n632.3\n \n  \n \n804.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal liquidity portfolio\n\n  \n¥\n 9,662.0\n \n  \n¥\n 10,156.7\n \n  \n¥\n 10,485.7\n \n  \n¥\n 10,699.6\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n(1)\n\nCash, cash equivalents, and time deposits include nostro balances and deposits with both central banks and market counterparties that are readily available to support the liquidity position of Nomura.\n\n(2)\n\nOthers include other liquid financial assets such as money market funds and U.S. agency securities.\n\nThe following table presents a breakdown of our liquidity portfolio by currency as of March 31, 2025 and 2026 and averages maintained for the years ended March 31, 2025 and 2026. Yearly averages are calculated using month-end amounts.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nAverage for\nyear ended\nMarch 31, 2025\n \n  \nMarch 31, 2025\n \n  \nAverage for\nyear ended\nMarch 31, 2026\n \n  \nMarch 31, 2026\n \n\nJapanese Yen\n\n  \n¥\n2,522.7\n \n  \n¥\n2,868.2\n \n  \n¥\n2,997.6\n \n  \n¥\n2,248.3\n \n\nU.S. Dollar\n\n  \n \n4,912.4\n \n  \n \n4,840.2\n \n  \n \n5,089.2\n \n  \n \n5,841.7\n \n\nEuro\n\n  \n \n1,101.3\n \n  \n \n1,234.6\n \n  \n \n1,267.6\n \n  \n \n1,412.5\n \n\nBritish Pound\n\n  \n \n667.1\n \n  \n \n662.5\n \n  \n \n549.4\n \n  \n \n555.7\n \n\nOthers(1)\n\n  \n \n458.4\n \n  \n \n551.2\n \n  \n \n581.9\n \n  \n \n641.4\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal liquidity portfolio\n\n  \n¥\n 9,662.0\n \n  \n¥\n 10,156.7\n \n  \n¥\n 10,485.7\n \n  \n¥\n 10,699.6\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n(1)\n\nIncludes other currencies such as the Australian Dollar, the Canadian Dollar and the Swiss Franc.\n\nWe assess our liquidity portfolio requirements globally as well as by each major operating entity in the Nomura Group. We primarily maintain our liquidity portfolio at Nomura Holdings, Inc. (“NHI”) and Nomura\n\n \n\n87\n\n##### Table of Contents\n\nSecurities Co. Ltd. (“NSC”), our other major broker-dealer subsidiaries, our bank subsidiaries, and other group entities. In determining the amounts and entities which hold this liquidity portfolio, we consider legal, regulatory and tax restrictions which may impact our ability to freely transfer liquidity across different entities in the Nomura Group. For more information regarding regulatory restrictions, see Note 20 “Regulatory requirements” in our consolidated financial statements included within this annual report.\n\nThe following table presents a breakdown of our liquidity portfolio by entity as of March 31, 2025 and 2026.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nMarch 31, 2025\n \n  \nMarch 31, 2026\n \n\nNHI and NSC(1)\n\n  \n¥\n2,439.4\n \n  \n¥\n1,777.9\n \n\nMajor broker-dealer subsidiaries\n\n  \n \n4,219.8\n \n  \n \n5,233.9\n \n\nBank subsidiaries(2)\n\n  \n \n1,784.4\n \n  \n \n1,712.0\n \n\nOther affiliates\n\n  \n \n1,713.1\n \n  \n \n1,975.8\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal liquidity portfolio\n\n  \n¥\n 10,156.7\n \n  \n¥\n 10,699.6\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n(1)\n\nNSC, a broker-dealer located in Japan, holds an account with the Bank of Japan (“BOJ”) and has direct access to the BOJ Lombard facility through which same day funding is available for our securities pool. Any liquidity surplus at NHI is lent to NSC via short-term intercompany loans, which can be unwound immediately when needed.\n\n(2)\n\nIncludes Nomura Bank International plc (“NBI”), Nomura Singapore Limited and Nomura Bank Luxembourg S.A.\n\n2. Utilization of Unencumbered Assets as Part of Our Liquidity Portfolio.\n\nIn addition to our liquidity portfolio, we had ¥3,002.4 billion of other unencumbered assets comprising mainly of unpledged trading assets that can be used as an additional source of secured funding. Global Treasury monitors other unencumbered assets and can, under a liquidity stress event when the contingency funding plan has been invoked, monetize and utilize the cash generated as a result. The aggregate of our liquidity portfolio and other unencumbered assets as of March 31, 2026 was ¥13,702.0 billion, which represented 223.0% of our total unsecured debt maturing within one year.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nMarch 31, 2025\n \n  \nMarch 31, 2026\n \n\nNet liquidity value of other unencumbered assets\n\n  \n¥\n2,432.2\n \n  \n¥\n3,002.4\n \n\nLiquidity portfolio\n\n  \n \n10,156.7\n \n  \n \n10,699.6\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n12,588.9\n \n  \n¥\n13,702.0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n3. Appropriate Funding and Diversification of Funding Sources and Maturities Commensurate with the Composition of Assets\n\nWe seek to maintain a surplus of long-term debt and equity above the cash capital requirements of our assets. We also seek to achieve diversification of our funding by market, instrument type, investors, currency, and staggered maturities in order to reduce unsecured refinancing risk.\n\nWe diversify funding by issuing various types of debt instruments—these include both structured loans and structured notes with returns linked to interest rates, currencies, equities, commodities, or related indices. We issue structured loans and structured notes in order to increase the diversity of our debt instruments. We typically hedge the returns we are obliged to pay with derivatives and/or the underlying assets to obtain funding equivalent to our unsecured long-term debt. The proportion of our non-Japanese Yen denominated long-term debt increased to 68.8% of total long-term debt outstanding as of March 31, 2026 from 62.4% as of March 31, 2025.\n\n \n\n88\n\n##### Table of Contents\n\n(1) Short-Term Unsecured Debt\n\nOur short-term unsecured debt consists of short-term bank borrowings (including long-term bank borrowings maturing within one year), other loans, commercial paper, deposit at banking entities, certificates of deposit and debt securities maturing within one year. Deposits at banking entities and certificates of deposit comprise customer deposits and certificates of deposit of our banking subsidiaries. Short-term unsecured debt includes the current portion of long-term unsecured debt.\n\nThe following table presents an analysis of our short-term unsecured debt by type of financial liability as of March 31, 2025 and 2026.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nMarch 31, 2025\n \n  \nMarch 31, 2026\n \n\nShort-term bank borrowings\n\n  \n¥\n369.2\n \n  \n¥\n624.5\n \n\nOther loans\n\n  \n \n304.4\n \n  \n \n330.0\n \n\nCommercial paper\n\n  \n \n113.8\n \n  \n \n90.8\n \n\nDeposits at banking entities\n\n  \n \n2,371.4\n \n  \n \n2,904.3\n \n\nCertificates of deposit\n\n  \n \n262.8\n \n  \n \n351.2\n \n\nDebt securities maturing within one year\n\n  \n \n1,380.7\n \n  \n \n1,842.3\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal short-term unsecured debt\n\n  \n¥\n 4,802.3\n \n  \n¥\n 6,143.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n(2) Long-Term Unsecured Debt\n\nWe meet our long-term capital requirements and also achieve both cost-effective funding and an appropriate maturity profile by routinely funding through long-term debt and diversifying across various maturities and currencies.\n\nOur long-term unsecured debt includes senior and subordinated debt issued through U.S. registered shelf offerings and our U.S. registered medium-term note programs, our Euro medium-term note programs, registered shelf offerings in Japan and various other debt programs.\n\nAs a globally competitive financial services group in Japan, we have access to multiple global markets and major funding centers. The Company, NSC, Nomura Europe Finance N.V., NBI, Nomura International Funding Pte. Ltd. and Nomura Global Finance Co., LTD. are the main group entities that borrow externally, issue debt instruments and engage in other funding activities. By raising funds to match the currencies and liquidities of our assets or by using foreign exchange swaps as necessary, we pursue optimization of our funding structures.\n\nWe use a wide range of products and currencies to ensure that our funding is efficient and well diversified across markets and investor types. Our unsecured senior debt is mostly issued without financial covenants, such as covenants related to adverse changes in our credit ratings, cash flows, results of operations or financial ratios, which could trigger an increase in our cost of financing or accelerate repayment of the debt.\n\nThe following table presents an analysis of our long-term unsecured debt by type of financial liability as of March 31, 2025 and 2026.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nMarch 31, 2025\n \n  \nMarch 31, 2026\n \n\nLong-term deposits at banking entities\n\n  \n¥\n471.4\n \n  \n¥\n411.5\n \n\nLong-term bank borrowings\n\n  \n \n3,272.8\n \n  \n \n3,428.0\n \n\nOther loans\n\n  \n \n306.0\n \n  \n \n874.0\n \n\nDebt securities(1)\n\n  \n \n6,757.2\n \n  \n \n7,938.9\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal long-term unsecured debt\n\n  \n¥\n 10,807.4\n \n  \n¥\n 12,652.4\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n89\n\n##### Table of Contents\n\n \n\n(1)\n\nExcludes long-term debt securities issued by consolidated special purpose entities and similar entities that meet the definition of variable interest entities under Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 810 “Consolidation” and secured financing transactions recognized within Long-term borrowings as a result of transfers of financial assets that are accounted for as financings rather than sales in accordance with ASC 860 “Transfers and Servicing” (“ASC 860”).\n\n(3) Maturity Profile\n\nWe also seek to maintain an average maturity for our plain vanilla debt securities and borrowings greater than or equal to three years. The average maturity for our plain vanilla debt securities and borrowings with maturities longer than one year was 4.2 years as of March 31, 2026. A significant amount of our structured loans and structured notes are linked to interest rates, currencies, equities, commodities, or related indices. These maturities are evaluated based on internal models and monitored by Global Treasury. Where there is a possibility that these may be called prior to their scheduled maturity date, maturities are based on our internal stress option adjusted model. The model values the embedded optionality under stress market conditions in order to determine when the debt securities or borrowing is likely to be called. The graph below shows the distribution of maturities of our outstanding long-term debt securities and borrowings by the model.\n\nOn this basis, the average maturity of our structured loans and structured notes with maturities longer than one year was 8.1 years as of March 31, 2026. The average maturity of our entire long-term debt with maturities longer than one year including plain vanilla debt securities and borrowings, was 6.3 years as of March 31, 2026.\n\n \n\n \n\n(4) Secured Funding\n\nWe typically fund our trading activities through secured borrowings, repurchase agreements and Japanese “Gensaki Repo” transactions. We believe such funding activities in the secured markets are more cost-efficient and less credit-rating sensitive than financing in the unsecured market. Our secured funding capabilities depend on the quality of the underlying collateral and market conditions. While we have shorter term secured financing for highly liquid assets, we seek longer terms for less liquid assets. We also seek to lower the refinancing risks of secured funding by transacting with a diverse group of global counterparties and delivering various types of securities collateral. In addition, we reserve an appropriate level of liquidity portfolio for the refinancing risks of secured funding maturing in the short term for less liquid assets. For more detail of secured borrowings and repurchase agreements, see Note 5 “Collateralized transactions” in our consolidated financial statements.\n\n \n\n90\n\n##### Table of Contents\n\n4. Management of Credit Lines to Nomura Group Entities\n\nWe maintain and expand credit lines to Nomura Group entities from other financial institutions to secure stable funding. We ensure that the maturity dates of borrowing agreements are distributed evenly throughout the year in order to prevent excessive maturities in any given period.\n\n5. Implementation of Liquidity Stress Tests\n\nWe maintain our liquidity portfolio and monitor the sufficiency of our liquidity based on an internal model which simulates changes in cash outflow under specified stress scenarios to comply with our above mentioned liquidity management policy.\n\nWe assess the liquidity requirements of the Nomura Group under various stress scenarios with differing levels of severity over multiple time horizons. We evaluate these requirements under Nomura-specific and broad market-wide events, including potential credit rating downgrades at the Company and subsidiary levels. We call this risk analysis our Maximum Cumulative Outflow (“MCO”) framework.\n\nThe MCO framework is designed to incorporate the primary liquidity risks for Nomura and models the relevant future cash flows in the following two primary scenarios:\n\n \n\n \n•\n \n\nStressed scenario—To maintain adequate liquidity during a severe market-wide liquidity event without raising funds through unsecured financing or through the liquidation of assets for a year; and\n\n \n\n \n•\n \n\nAcute stress scenario—To maintain adequate liquidity during a severe market-wide liquidity event coupled with credit concerns regarding Nomura’s liquidity position, without raising funds through unsecured funding or through the liquidation of assets for 30 days.\n\nWe assume that Nomura will not be able to liquidate assets or adjust its business model during the time horizons used in each of these scenarios. The MCO framework therefore defines the amount of liquidity required to be held in order to meet our expected liquidity needs in a stress event to a level we believe appropriate based on our liquidity risk appetite.\n\nAs of March 31, 2026, our liquidity portfolio exceeded net cash outflows under the stress scenarios described above.\n\nWe constantly evaluate and modify our liquidity risk assumptions based on regulatory and market changes. The model we use in order to simulate the impact of stress scenarios includes the following assumptions:\n\n \n\n \n•\n \n\nNo liquidation of assets;\n\n \n\n \n•\n \n\nNo ability to issue additional unsecured funding;\n\n \n\n \n•\n \n\nUpcoming maturities of unsecured debt (maturities less than one year);\n\n \n\n \n•\n \n\nPotential buybacks of our outstanding debt;\n\n \n\n \n•\n \n\nLoss of secured funding lines particularly for less liquid assets;\n\n \n\n \n•\n \n\nFluctuation of funding needs under normal business circumstances;\n\n \n\n \n•\n \n\nCash deposits and free collateral roll-off in a stress event;\n\n \n\n \n•\n \n\nWidening haircuts on outstanding repo funding;\n\n \n\n \n•\n \n\nAdditional collateralization requirements of clearing banks and depositories;\n\n \n\n \n•\n \n\nDrawdown on loan commitments;\n\n \n\n \n•\n \n\nLoss of liquidity from market losses;\n\n \n\n91\n\n##### Table of Contents\n\n \n•\n \n\nAssuming a two-notch downgrade of our credit ratings, the aggregate fair value of assets that we would be required to post as additional collateral in connection with our derivative contracts; and\n\n \n\n \n•\n \n\nLegal and regulatory requirements that can restrict the flow of funds between entities in the Nomura Group.\n\n6. Contingency Funding Plan\n\nWe have developed a detailed contingency funding plan to integrate liquidity risk control into our comprehensive risk management strategy and to enhance the quantitative aspects of our liquidity risk control procedures. As a part of our Contingency Funding Plan (“CFP”), we have developed an approach for analyzing and quantifying the impact of any liquidity crisis. This allows us to estimate the likely impact of both Nomura-specific and market-wide events; and specifies the immediate action to be taken to mitigate any risk. The CFP lists details of key internal and external parties to be contacted and the processes by which information is to be disseminated. This has been developed at a legal entity level in order to capture specific cash requirements at the local level—it assumes that our parent company does not have access to cash that may be trapped at a subsidiary level due to regulatory, legal or tax constraints. We periodically test the effectiveness of our funding plans for different Nomura-specific and market-wide events. We also have access to central banks including, but not exclusively, the BOJ, which provide financing against various types of securities. These operations are accessed in the normal course of business and are an important tool in mitigating contingent risk from market disruptions.\n\nLiquidity Regulatory Framework\n\nIn 2008, the Basel Committee published “Principles for Sound Liquidity Risk Management and Supervision.” To complement these principles, the Committee has further strengthened its liquidity framework by developing two minimum standards for funding liquidity. These standards have been developed to achieve two separate but complementary objectives.\n\nThe first objective is to promote short-term resilience of a financial institution’s liquidity risk profile by ensuring that it has sufficient high-quality liquid assets to survive a significant stress scenario lasting for 30 days. The Committee developed the LCR to achieve this objective.\n\nThe second objective is to promote resilience over a longer time horizon by creating additional incentives for financial institutions to fund their activities with more stable sources of funding on an ongoing basis. The NSFR has a time horizon of one year and has been developed to provide a sustainable maturity structure of assets and liabilities.\n\nThese two standards are comprised mainly of specific parameters which are internationally “harmonized” with prescribed values. Certain parameters, however, contain elements of national discretion to reflect jurisdiction-specific conditions.\n\nIn Japan, the regulatory notice on implementation of LCR, based on the international agreement issued by the Basel Committee with necessary national revisions, was published by the FSA on October 31, 2014. The notice was implemented at the end of March 2015 with phased-in minimum standards. Average of Nomura’s LCR for the three months ended March 31, 2026 was 214.0%, and Nomura was compliant with all LCR regulatory requirements. As for NSFR, the revision of the liquidity regulatory notice was published by the FSA on March 31, 2021 and was implemented from the end of September 2021. Nomura’s NSFR as of March 31, 2026 was compliant with all NSFR regulatory requirements.\n\nCash Flows\n\nNomura’s cash flows are primarily generated from operating activities undertaken in connection with our client flows and trading and from financing activities which are closely related to such activities. As a financial institution,\n\n \n\n92\n\n##### Table of Contents\n\ngrowth in operations tends to result in cash outflows from operating activities as well as investing activities. For the years ended March 31, 2025 and 2026, we recorded net cash outflows from operating activities and investing activities and net cash inflows from financing activities as discussed in the comparative analysis below.\n\nThe following table presents the key information on our consolidated cash flows for the years ended March 31, 2025 and 2026.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nYear Ended March 31\n \n\n \n  \n2025\n \n \n2026\n \n\nNet cash used in operating activities\n\n  \n¥\n(678.6\n) \n \n¥\n(843.0\n) \n\nNet income\n\n  \n \n347.3\n \n \n \n374.4\n \n\nTrading assets and private equity and debt investments\n\n  \n \n(3,026.3\n) \n \n \n(2,861.9\n) \n\nTrading liabilities\n\n  \n \n574.2\n \n \n \n1,111.3\n \n\nSecurities purchased under agreements to resell, net of securities sold under agreements to repurchase\n\n  \n \n1,108.8\n \n \n \n(441.0\n) \n\nSecurities borrowed, net of securities loaned\n\n  \n \n526.2\n \n \n \n882.2\n \n\nOther net operating cash flow reconciling items\n\n  \n \n(208.8\n) \n \n \n92.0\n \n\nNet cash used in investing activities\n\n  \n \n(848.6\n) \n \n \n(1,498.9\n) \n\nNet cash outflows from time deposits\n\n  \n \n(107.0\n) \n \n \n(1.4\n) \n\nNet cash outflows from loans\n\n  \n \n(538.9\n) \n \n \n(805.4\n) \n\nNet cash outflows from other non-trading debt securities\n\n  \n \n(47.8\n) \n \n \n(89.9\n) \n\nAcquisitions, net of cash acquired\n\n  \n \n— \n \n \n \n(275.0\n) \n\nOther net investing cash outflows\n\n  \n \n(154.9\n) \n \n \n(327.2\n) \n\nNet cash provided by financing activities\n\n  \n \n1,679.7\n \n \n \n2,095.9\n \n\nNet cash inflows from long-term borrowings\n\n  \n \n1,020.9\n \n \n \n1,437.8\n \n\nNet cash inflows / (outflows) from short-term borrowings\n\n  \n \n(26.7\n) \n \n \n110.7\n \n\nNet cash inflows from deposits received at banks\n\n  \n \n785.4\n \n \n \n387.4\n \n\nOther net financing cash inflows / (outflows)\n\n  \n \n(99.9\n) \n \n \n160.0\n \n\nEffect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents\n\n  \n \n(26.0\n) \n \n \n139.3\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents\n\n  \n \n126.4\n \n \n \n(106.7\n) \n\nCash, cash equivalents, restricted cash and restricted cash equivalents at beginning of the year\n\n  \n \n4,299.0\n \n \n \n4,425.4\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash, cash equivalents, restricted cash and restricted cash equivalents at end of the year\n\n  \n¥\n4,425.4\n \n \n¥\n4,318.7\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSee the consolidated statements of cash flows in our consolidated financial statements included within this annual report for more detailed information.\n\nFor the year ended March 31, 2026, our cash, cash equivalents, restricted cash and restricted cash equivalents decreased by ¥106.7 billion to ¥4,318.7 billion. Net cash of ¥2,095.9 billion was provided by financing activities due to net cash inflows of ¥1,437.8 billion from Net cash inflows from long-term borrowings. Net cash of ¥1,498.9 billion was used in investing activities due to net cash outflows of ¥805.4 billion from Net cash outflows from loans. As part of trading activities, while there were net cash outflows of ¥1,750.6 billion primarily due to an increase in Trading assets and private equity and debt investments, they were offset by net cash inflows of ¥441.2 billion from repo transactions and securities borrowed and loaned transactions such as Securities purchased under agreements to resell, net of securities sold under agreements to repurchase, and Securities borrowed, net of Securities loaned. As a result, net cash of ¥843.0 billion was used in operating activities.\n\nFor the year ended March 31, 2025, our cash, cash equivalents, restricted cash and restricted cash equivalents increased by ¥126.4 billion to ¥4,425.4 billion. Net cash of ¥1,679.7 billion was provided by financing activities due to\n\n \n\n93\n\n##### Table of Contents\n\nnet cash inflows of ¥1,020.9 billion from Net cash inflows from long-term borrowings. Net cash of ¥848.6 billion was used in investing activities due to net cash outflows of ¥538.9 billion from Net cash outflows from loans. As part of trading activities, while there were net cash outflows of ¥2,452.1 billion primarily due to an increase in Trading assets and private equity and debt investments, they were offset by net cash inflows of ¥1,635.0 billion from repo transactions and securities borrowed and loaned transactions such as Securities purchased under agreements to resell, net of securities sold under agreements to repurchase, and Securities borrowed, net of Securities loaned. As a result, net cash of ¥678.6 billion was used in operating activities.\n\nBalance Sheet and Financial Leverage\n\nTotal assets as of March 31, 2026, were ¥62,645.9 billion, an increase of ¥5,843.8 billion compared with ¥56,802.2 billion as of March 31, 2025, reflecting primarily an increase in Trading assets. Total liabilities as of March 31, 2026, were ¥58,791.0 billion, an increase of ¥5,569.8 billion compared with ¥53,221.2 billion as of March 31, 2025, reflecting primarily an increase in Long-term borrowings. NHI shareholders’ equity as of March 31, 2026 was ¥3,707.9 billion, an increase of ¥237.0 billion compared with ¥3,470.9 billion as of March 31, 2025, primarily due to an increase in Retained earnings.\n\nWe seek to maintain sufficient capital at all times to withstand losses due to extreme market movements. The EMB is responsible for implementing and enforcing capital policies. This includes the determination of our balance sheet size and required capital levels. We continuously review our equity capital base to ensure that it can support the economic risk inherent in our business. There are also regulatory requirements for minimum capital of entities that operate in regulated securities or banking businesses.\n\nAs leverage ratios are commonly used by other financial institutions similar to us, we voluntarily provide a leverage ratio and adjusted leverage ratio primarily for benchmarking purposes so that users of this annual report can compare our leverage against other financial institutions. Adjusted leverage ratio is a non-GAAP financial measure that Nomura considers to be a useful supplemental measure of leverage.\n\nThe following table presents NHI shareholders’ equity, total assets, adjusted assets and leverage ratios as of March 31, 2025 and 2026.\n\n \n\n \n  \nBillions of yen, except ratios\n \n\n \n  \nMarch 31\n \n\n \n  \n  2025  \n \n  \n  2026  \n \n\nNHI shareholders’ equity\n\n  \n¥\n3,470.9\n \n  \n¥\n3,707.9\n \n\nTotal assets\n\n  \n \n56,802.2\n \n  \n \n62,645.9\n \n\nAdjusted assets(1)\n\n  \n \n38,138.6\n \n  \n \n45,096.0\n \n\nLeverage ratio(2)\n\n  \n \n16.4 x\n \n  \n \n16.9 x\n \n\nAdjusted leverage ratio(3)\n\n  \n \n11.0 x\n \n  \n \n12.2 x\n \n\n \n\n(1)\n\nRepresents total assets less Securities purchased under agreements to resell and Securities borrowed. Adjusted assets is a non-GAAP financial measure and is calculated as follows:\n\n(2)\n\nEquals total assets divided by NHI shareholders’ equity.\n\n(3)\n\nEquals adjusted assets divided by NHI shareholders’ equity.\n\n \n\n \n  \nBillions of yen\n \n\n \n  \nMarch 31\n \n\n \n  \n2025\n \n  \n2026\n \n\nTotal assets\n\n  \n¥\n56,802.2\n \n  \n¥\n62,645.9\n \n\nLess:\n\n  \n\n  \n\nSecurities purchased under agreements to resell\n\n  \n \n14,004.8\n \n  \n \n13,210.2\n \n\nSecurities borrowed\n\n  \n \n4,658.8\n \n  \n \n4,339.7\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nAdjusted assets\n\n  \n¥\n38,138.6\n \n  \n¥\n45,096.0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n94\n\n##### Table of Contents\n\nTotal assets increased by 10.3% reflecting primarily an increase in Trading assets. Total NHI shareholders’ equity increased by 6.8% reflecting primarily an increase in Retained earnings. As a result, our leverage ratios were 16.4 times as of March 31, 2025 and 16.9 times as of March 31, 2026.\n\nAdjusted assets increased primarily due to an increase in Trading assets. As a result, our adjusted leverage ratios were 11.0 times as of March 31, 2025 and 12.2 times as of March 31, 2026.\n\nCapital Management\n\nCapital Management Policy\n\nWe seek to enhance shareholder value and to capture growing business opportunities by maintaining sufficient levels of capital. We will continue to review our levels of capital as appropriate, taking into consideration the economic risks inherent to operating our businesses, the regulatory requirements, and maintaining our ratings necessary to operate businesses globally.\n\nDividends\n\nWe believe that raising corporate value over the long term and paying dividends is essential to rewarding shareholders. We will strive to pay dividends using a consolidated pay-out ratio of at least 40% of each semi-annual consolidated earnings as a key indicator.\n\nDividend payments will be determined taking into account a comprehensive range of factors such as, trends in domestic and international regulatory developments, including Basel regulations, as well as the Company’s consolidated financial performance.\n\nDividends will in principle be paid on a semi-annual basis with record dates of September 30 and March 31.\n\nAdditionally, we will aim for a total payout ratio, which includes dividends and share buybacks, of at least 50%.\n\nWith respect to the retained earnings, in order to implement measures to adapt to regulatory changes and to increase shareholder value, we seek to efficiently invest in business areas where high profitability and growth may reasonably be expected, including the development and expansion of infrastructure such as IT systems and retail branches.\n\nDividends for the Fiscal Year\n\nBased on our Capital Management Policy described above, we paid a dividend of ¥27 per share to shareholders of record as of September 30, 2025 and have decided to pay a dividend of ¥24 per share to shareholders of record as of March 31, 2026. As a result, the total annual dividend will be ¥51 per share.\n\nThe following table presents the amounts of dividends per share paid by us in respect of the periods indicated:\n\n \n\nThe year ended March 31,\n\n  \nFirst Quarter\n \n  \nSecond Quarter\n \n  \nThird Quarter\n \n  \nFourth Quarter\n \n  \nTotal\n \n\n2021\n\n  \n¥\n— \n \n  \n¥\n20.00\n \n  \n¥\n— \n \n  \n¥\n15.00\n \n  \n¥\n35.00\n \n\n2022\n\n  \n \n— \n \n  \n \n8.00\n \n  \n \n— \n \n  \n \n14.00\n \n  \n \n22.00\n \n\n2023\n\n  \n \n— \n \n  \n \n5.00\n \n  \n \n— \n \n  \n \n12.00\n \n  \n \n17.00\n \n\n2024\n\n  \n \n— \n \n  \n \n8.00\n \n  \n \n— \n \n  \n \n15.00\n \n  \n \n23.00\n \n\n2025\n\n  \n \n— \n \n  \n \n23.00\n \n  \n \n— \n \n  \n \n34.00\n \n  \n \n57.00\n \n\n2026\n\n  \n \n— \n \n  \n \n27.00\n \n  \n \n— \n \n  \n \n24.00\n \n  \n \n51.00\n \n\nNote: Breakdown of Fourth Quarter dividend for the year ended March 31, 2025: Ordinary dividend ¥24.00, Commemorative dividend ¥10.00.\n\n \n\n95\n\n##### Table of Contents\n\nConsolidated Regulatory Capital Requirements\n\nThe FSA established the “Guideline for Financial Conglomerates Supervision” (“Financial Conglomerates Guideline”) in June 2005 and set out the rules on consolidated regulatory capital. We started monitoring our consolidated capital adequacy ratio in accordance with the Financial Conglomerates Guideline from April 2005.\n\nThe Company has been assigned by the FSA as a Final Designated Parent Company who must calculate a consolidated capital adequacy ratio according to the Capital Adequacy Notice on Final Designated Parent Company in April 2011. Since then, we have been calculating our consolidated capital adequacy ratio according to the Capital Adequacy Notice on Final Designated Parent Company. The Capital Adequacy Notice on Final Designated Parent Company has been revised to be in line with Basel 2.5 and Basel III since then. We have calculated a Basel III-based consolidated capital adequacy ratio from the end of March 2013. Basel 2.5 includes significant change in calculation method of market risk and Basel III includes redefinition of capital items for the purpose of requiring higher quality of capital and expansion of the scope of credit risk-weighted assets calculation.\n\nIn accordance with Article 2 of the Capital Adequacy Notice on Final Designated Parent Company, our consolidated capital adequacy ratio is currently calculated based on the amounts of common equity Tier 1 capital, Tier 1 capital (sum of common equity Tier 1 capital and additional Tier 1 capital), total capital (sum of Tier 1 capital and Tier 2 capital), credit risk-weighted assets, market risk and operational risk. As of March 31, 2026, our common equity Tier 1 capital ratio is 12.86%, Tier 1 capital ratio is 15.65% and consolidated capital adequacy ratio is 16.42% and we are in compliance with the requirement for each ratio set out in the Capital Adequacy Notice on Final Designated Parent Company, etc. (required level including applicable minimum consolidated capital buffers as of March 31, 2026 is 7.69% for the common equity Tier 1 capital ratio, 9.19% for the Tier 1 capital ratio and 11.19% for the consolidated capital adequacy ratio).\n\nIn accordance with Article 2 of the “Notice of the Establishment of Standards that Indicate Soundness pertaining to Loss-absorbing and Recapitalization Capacity, Established as Criteria by which the Highest Designated Parent Company is to Judge the Soundness in the Management of the Highest Designated Parent Company and its Subsidiary Corporations, etc., under Paragraph 1, Article 57 -17 of the Financial Instruments and Exchange Act” (“TLAC Notification”), we have started calculating our external TLAC ratio on a risk-weighted assets basis from March 2021. As of March 31, 2026, our external TLAC as a percentage of risk-weighted assets is 26.74% and we are in compliance with the requirement set out in the TLAC Notification.\n\nThe following table presents the Company’s consolidated capital adequacy ratios and External TLAC as a percentage of risk-weighted assets as of March 31, 2025 and March 31, 2026.\n\n \n\n \n  \nBillions of yen, except ratios\n \n\n \n  \nMarch 31\n \n\n \n  \n2025\n \n  \n2026\n \n\nCommon equity Tier 1 capital\n\n  \n¥\n3,122.5\n \n  \n¥\n3,156.8\n \n\nTier 1 capital\n\n  \n \n3,499.5\n \n  \n \n3,842.9\n \n\nTotal capital\n\n  \n \n3,500.1\n \n  \n \n4,032.2\n \n\nRisk-Weighted Assets\n\n  \n\n  \n\nCredit risk-weighted assets\n\n  \n \n11,561.2\n \n  \n \n13,793.8\n \n\nMarket risk equivalent assets\n\n  \n \n6,239.2\n \n  \n \n6,535.7\n \n\nOperational risk equivalent assets\n\n  \n \n3,696.2\n \n  \n \n4,214.3\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal risk-weighted assets\n\n  \n¥\n21,496.6\n \n  \n¥\n24,543.8\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nConsolidated Capital Adequacy Ratios\n\n  \n\n  \n\nCommon equity Tier 1 capital ratio\n\n  \n \n14.52\n% \n  \n \n12.86\n% \n\nTier 1 capital ratio\n\n  \n \n16.27\n% \n  \n \n15.65\n% \n\nConsolidated capital adequacy ratio\n\n  \n \n16.28\n% \n  \n \n16.42\n% \n\nConsolidated Leverage Ratio\n\n  \n \n5.16\n% \n  \n \n5.18\n% \n\n \n\n96\n\n##### Table of Contents\n\n \n  \nBillions of yen,\nexcept ratios\n \n\n \n  \nMarch 31\n \n\n \n  \n2025\n \n  \n2026\n \n\nExternal TLAC Ratios\n\n  \n\n  \n\nRisk-weighted assets basis\n\n  \n \n28.16\n% \n  \n \n26.74\n% \n\nLeverage ratio exposure measure basis\n\n  \n \n9.93\n% \n  \n \n9.91\n% \n\nSince the end of March 2011, we have been calculating credit risk-weighted assets by using the foundation Internal Ratings-Based Approach with the approval of the FSA. In according with Basel III, we have been calculating market risk equivalent assets by using both of the Internal Model Approach and the Standardized Approach, and operational risk equivalent assets by the Standardized Approach since March 2025.\n\nWe provide consolidated capital adequacy ratios not only to demonstrate that we are in compliance with the requirements set out in the Capital Adequacy Notice on Final Designated Parent Company but also for benchmarking purposes so that users of this annual report can compare our capital position against those of other financial groups to which Basel III is applied. Our management receives and reviews these capital ratios on a regular basis.\n\nConsolidated Leverage Ratio Requirements\n\nIn March 2019, the FSA set out requirements for the calculation and disclosure and minimum requirement of 3% of a consolidated leverage ratio, and the publication of “Notice of the Establishment of Standards for Determining Whether the Adequacy of Leverage, the Supplementary Measure to the Adequacy of Equity Capital of a Final Designated Parent Company and its Subsidiary Corporations, etc. is Appropriate Compared to the Assets Held by the Final Designated Parent Company and its Subsidiary Corporations, etc., under Paragraph 1, Article 57-17 of the Financial Instruments and Exchange Act” (2019 FSA Regulatory Notice No. 13; “Notice on Consolidated Leverage Ratio”), through amendments to revising “Specification of items which a final designated parent company should disclose on documents to show the status of its sound management” (2010 FSA Regulatory Notice No. 132; “Notice on Pillar 3 Disclosure”). We started calculating and disclosing a consolidated leverage ratio from March 31, 2015, in accordance with these Notices. We have also started calculating a consolidated leverage ratio from March 31, 2019, in accordance with the Notice on Pillar 3 Disclosure, Notice on Consolidated Leverage Ratio and other related Notices. In coordination with the monetary policy of the Bank of Japan in response to the impact of the COVID-19 pandemic, the FSA published amendments to the Notice on Consolidated Leverage Ratio on June 2020 and March 2021. Under these amendments, deposits with the Bank of Japan have been excluded from the total exposure measure used to calculate the leverage ratio during the period from June 30, 2020. In July 2022, the FSA published further amendments to the Notice on Consolidated Leverage Ratio to raise the required level of leverage ratio from 3.0% to 3.15% after April 2024, while excluding the outstanding deposits with the Bank of Japan from the exposure measure as set forth in the previous amendment. As of March 31, 2026, our consolidated leverage ratio is 5.18%.\n\nIn accordance with Article 2 of the TLAC Notification we have started calculating our external TLAC ratio on a total exposure basis from March 2021. As of March 31, 2026, our external TLAC as a percentage of leverage ratio exposure measure is 9.91% and we are in compliance with the requirement set out in the TLAC Notification.\n\nIt is likely that the FSA’s regulation and notice will be revised further to be in line with a series of rules and standards proposed by the Basel Committee, FSB or International Organization of Securities Commissions.\n\nCredit Ratings\n\nWe rely on, or utilize, credit ratings on our long-term and short-term debt provided by these credit ratings agencies for unsecured funding and other financing purposes and also for our trading and other business\n\n \n\n97\n\n##### Table of Contents\n\nactivities. NHI and NSC obtain credit ratings on their long-term and short-term debt from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings, Rating and Investment Information, Inc. and Japan Credit Rating Agency.\n\nOn February 17, 2026, S&P Global Ratings changed the Outlook of the Company and NSC from Stable to Positive.\n\nOn April 20, 2026, Rating and Investment Information, Inc. changed the Long Term Issuer Rating of the Company from A to A+, the Long Term Issuer Rating of NSC from A+ to AA-, and the Outlook of the Company and NSC from Positive to Stable.\n\nAs of April 30, 2026, the credit ratings of the Company and NSC were as follows.\n\n \n\nNomura Holdings, Inc.\n\n  \nShort-term Debt\n  \nLong-term Debt\n\nS&P Global Ratings\n\n  \nA-2\n  \nBBB+\n\nMoody’s Investors Service\n\n  \n— \n  \nBaa1\n\nFitch Ratings\n\n  \nF1\n  \nA-\n\nRating and Investment Information, Inc.\n\n  \na-1\n  \nA+\n\nJapan Credit Rating Agency, Ltd.\n\n  \n— \n  \nAA-\n\nNomura Securities Co., Ltd.\n\n  \nShort-term Debt\n  \nLong-term Debt\n\nS&P Global Ratings\n\n  \nA-2\n  \nA-\n\nMoody’s Investors Service\n\n  \nP-2\n  \nA3\n\nFitch Ratings\n\n  \nF1\n  \nA-\n\nRating and Investment Information, Inc.\n\n  \na-1+\n  \nAA-\n\nJapan Credit Rating Agency, Ltd.\n\n  \n— \n  \nAA-\n\nOff-Balance Sheet Arrangements\n\nOff-balance sheet entities\n\nIn the normal course of business, we engage in a variety of off-balance sheet arrangements with off-balance sheet entities which may have an impact on Nomura’s future financial position and performance.\n\nOff-balance sheet arrangements with off-balance sheet entities include where Nomura has:\n\n \n\n \n•\n \n\nan obligation under a guarantee contract;\n\n \n\n \n•\n \n\na retained or contingent interest in assets transferred to an off-balance sheet entity or similar arrangement that serves to provide credit, liquidity or market risk support to such entity;\n\n \n\n \n•\n \n\nany obligation, including a contingent obligation, under a contract that would be accounted for as a derivative instrument; or\n\n \n\n \n•\n \n\nany obligation, including a contingent obligation, arising out of a variable interest in an off-balance sheet entity that is held by, and material to, us, where such entity provides financing, liquidity, market risk or credit risk support to, or engages in leasing, hedging or research and development services with, us.\n\nOff-balance sheet entities may take the form of a corporation, partnership, fund, trust or other legal vehicle which is designed to fulfill a limited, specific purpose by its sponsor. We both create or sponsor these entities and also enter into arrangements with entities created or sponsored by others.\n\nOur involvement with these entities includes structuring, underwriting, distributing and selling debt instruments and beneficial interests issued by these entities, subject to prevailing market conditions. In\n\n \n\n98\n\n##### Table of Contents\n\nconnection with our securitization and equity derivative activities, we also act as a transferor of financial assets to these entities, as well as, underwriter, distributor and seller of asset-repackaged financial instruments issued by these entities. We retain, purchase and sell variable interests in SPEs in connection with our market-making, investing and structuring activities. Our other types of off-balance sheet arrangements include guarantee agreements and derivative contracts. Significant involvement is assessed based on all of our arrangements with these entities, even if the probability of loss, as assessed at the balance sheet date, is remote.\n\nFor further information about transactions with VIEs, see Note 7 “Securitizations and Variable Interest Entities” in our consolidated financial statements included in this annual report.\n\nTabular Disclosure of Contractual Obligations\n\nIn the ordinary course of our business, we enter into a variety of contractual obligations and contingent commitments, which may require future payments. These arrangements include:\n\nStandby letters of credit and other guarantees:\n\n \n\n \n•\n \n\nIn connection with our banking and financing activities, we enter into various guarantee arrangements with counterparties in the form of standby letters of credit and other guarantees, which generally have fixed expiration dates.\n\nLong-term borrowings and contractual interest payments:\n\n \n\n \n•\n \n\nIn connection with our operating activities, we issue Japanese Yen and non-Japanese Yen denominated long-term borrowings which incur variable and fixed interest payments in accordance with our funding policy.\n\nOperating lease commitments:\n\n \n\n \n•\n \n\nWe lease office space, residential facilities for employees, motor vehicles, equipment and technology assets in the ordinary course of business both in Japan and overseas as lessee. These arrangements predominantly consist of operating leases.\n\n \n•\n \n\nSeparately we sublease certain real estate and equipment through operating lease arrangements.\n\nFinance lease commitments:\n\n \n\n \n•\n \n\nWe lease certain equipment and facilities in Japan and overseas which are classified as finance lease agreements.\n\nPurchase obligations:\n\n \n\n \n•\n \n\nWe have purchase obligations for goods and services which include payments for construction, advertising, and computer and telecommunications maintenance agreements.\n\nCommitments to extend credit:\n\n \n\n \n•\n \n\nIn connection with our banking and financing activities, we enter into contractual commitments to extend credit, which generally have fixed expiration dates.\n\n \n\n \n•\n \n\nIn connection with our investment banking activities, we enter into agreements with clients under which we commit to underwrite securities that may be issued by clients.\n\n \n\n99\n\n##### Table of Contents\n\n \n•\n \n\nAs a member of certain central clearing counterparties, Nomura is committed to provide liquidity facilities through entering into reverse repurchase transactions backed by government and government agency debt securities with those counterparties in a situation where a default of another clearing member occurs.\n\nCommitments to invest in partnerships:\n\n \n\n \n•\n \n\nWe have commitments to invest in interests in various partnerships and other entities and commitments to provide financing for investments related to those partnerships.\n\nNote 9 “Leases” in our consolidated financial statements contains further detail on our operating leases and finance leases. Note 13 “Borrowings” in our consolidated financial statements contains further detail on our short-term and long-term borrowing obligations and Note 22 “Commitments, contingencies and guarantees” in our consolidated financial statements included in this annual report contains further detail on our other commitments, contingencies and guarantees.\n\nThe contractual amounts of commitments to extend credit represent the maximum amounts at risk should the contracts be fully drawn upon, should the counterparties default, and assuming the value of any existing collateral becomes worthless. The total contractual amount of these commitments may not represent future cash requirements since the commitments may expire without being drawn upon. The credit risk associated with these commitments varies depending on our clients’ creditworthiness and the value of collateral held. We evaluate each client’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us upon extension of credit, is based on management’s credit evaluation of the counterparty.\n\nThe following table presents information regarding amounts and timing of our future contractual obligations and contingent commitments as of March 31, 2026.\n\n \n\n \n  \nMillions of yen\n \n\n \n  \nTotal\ncontractual\namount\n \n  \nYears to maturity\n \n\n \n  \nLess than\n1 year\n \n  \n1 to 3\nyears\n \n  \n3 to 5\nyears\n \n  \nMore than\n5 years\n \n\nStandby letters of credit and other guarantees\n\n  \n¥\n5,222,432\n \n  \n¥\n5,189,429\n \n  \n¥\n18,628\n \n  \n¥\n11,126\n \n  \n¥\n3,249\n \n\nLong-term borrowings(1)\n\n  \n \n14,999,587\n \n  \n \n1,431,899\n \n  \n \n3,622,251\n \n  \n \n3,728,066\n \n  \n \n6,217,371\n \n\nContractual interest payments(2)\n\n  \n \n2,478,604\n \n  \n \n394,777\n \n  \n \n647,704\n \n  \n \n424,169\n \n  \n \n1,011,954\n \n\nOperating lease commitments(3)\n\n  \n \n173,162\n \n  \n \n49,128\n \n  \n \n65,826\n \n  \n \n31,733\n \n  \n \n26,475\n \n\nPurchase obligations(4)\n\n  \n \n110,732\n \n  \n \n78,647\n \n  \n \n17,817\n \n  \n \n6,623\n \n  \n \n7,645\n \n\nCommitments to extend credit(5)\n\n  \n \n2,665,196\n \n  \n \n1,412,624\n \n  \n \n591,051\n \n  \n \n395,454\n \n  \n \n266,067\n \n\nCommitments to invest\n\n  \n \n66,952\n \n  \n \n2,991\n \n  \n \n382\n \n  \n \n4,554\n \n  \n \n59,025\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n¥\n25,716,665\n \n  \n¥\n8,559,495\n \n  \n¥\n4,963,659\n \n  \n¥\n4,601,725\n \n  \n¥\n7,591,786\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n(1)\n\nThe amounts disclosed within long-term borrowings exclude financial liabilities recognized within long-term borrowings as a result of transfers of financial assets that are accounted for as financings rather than sales in accordance with ASC 860 “Transfers and Servicing”. These are not borrowings issued for our own funding purposes and therefore do not represent actual contractual obligations by us to deliver cash.\n\n(2)\n\nThe amounts represent estimated future interest payments related to long-term borrowings based on the period through to their maturity and applicable interest rates as of March 31, 2026.\n\n(3)\n\nThe amounts of operating lease commitments are undiscounted future minimum lease payments. The amounts of finance lease contracts were immaterial.\n\n(4)\n\nThe minimum contractual obligations under enforceable and legally binding contracts that specify all significant terms. Amounts exclude obligations that are already reflected on our consolidated balance sheets as liabilities or payables. Includes the commitment to purchase parts of the redeveloped real estate in Tokyo Nihonbashi district from the redevelopment association.\n\n \n\n100\n\n##### Table of Contents\n\n(5)\n\nContingent liquidity facilities to central clearing counterparties are included.\n\nExcluded from the above table are obligations that are generally short-term in nature, including short-term borrowings, deposits received at banks and other payables, collateralized agreements and financing transactions (such as reverse repurchase and repurchase agreements), and trading liabilities.\n\nIn addition to amounts presented above, we have commitments under reverse repurchase and repurchase agreements including amounts in connection with collateralized agreements and collateralized financing. These commitments amount to ¥4,084 billion for reverse repurchase agreements and ¥2,322 billion for repurchase agreements as of March 31, 2026.\n\nC. Research and Development, Patents and Licenses, etc.\n\nNot applicable.\n\nD. Trend Information.\n\nThe information required by this item is set forth in Item 5.A of this annual report.\n\nE. Critical Accounting Policies and Estimates\n\nCritical accounting policies are the accounting policies which have the most significant impact on the preparation of our consolidated financial statements included within this annual report and which require the most difficult, subjective and complex judgments by our management to develop estimates used in the application of these policies. Estimates, by their nature, are based on underlying assumptions which require management judgment and depend on the extent of information available at the time. Actual results in future reporting periods may differ from these estimates, which could have a material impact on our consolidated financial statements.\n\nThe following table summarizes the critical accounting policies which have had the most significant impact on our consolidated financial statements for the year ended March 31, 2026. The table also identifies the critical accounting estimates inherent within application of those policies, the underlying assumptions and judgments made by our management to derive those estimates and the potential financial impact had we applied different estimates or assumptions as of March 31, 2025 and 2026. See Note 1 “Summary of Accounting Policies” in our consolidated financial statements included in this annual report for more information on these critical accounting policies and the relevant footnote disclosures referred to in the table for more information around how those critical accounting policies and critical accounting estimates have been applied.\n\n \n\n101\n\n##### Table of Contents\n\nCritical\naccounting\npolicy\n\n \n\nCritical accounting\nestimates\n\n \n\nKey subjective assumptions or\njudgments by management\n\n \n\nEffect of changes in estimates and\nassumptions during the year ended\nMarch 31, 2026\n\nFair value of financial instruments\n\n \n\nNote 2 “Fair value\n\nmeasurements”\n\n \nEstimating fair value for financial instruments\n \n\nA significant portion of our financial instruments are carried at fair value. The fair values of these financial instruments may not only be measured at quoted prices but also impacted by other factors, including selection of valuation techniques/ models and other assumptions that require judgment.\n\n \n\nThis may affect the amount and timing of unrealized gains or losses recognized in the consolidated statements of income or accumulated other comprehensive income for a particular financial instrument.\n\n \n\nSelection of appropriate valuation techniques\n\n \n\n•\n\nFor financial instruments measured at fair values where quoted prices are available in active markets, we typically use quoted prices as level 1 inputs for determining the fair values of these financial instruments.\n\n \n\n•\n\nFor financial instruments where such quoted prices are not available, the fair values of these financial instruments are measured using level 2 or level 3 inputs. Significant judgment is involved in selection of appropriate valuation techniques and validation of assumptions applied in models because the estimated fair values measured could vary depending on which models and assumptions are used. When selecting valuation techniques, various factors such as the particular circumstances and markets where these financial instruments are traded, the availability of reliable inputs, maximizing the use of relevant observable inputs and minimizing the use of\n\n \n\nSee Note 2 “Fair value measurements” for further information around our valuation methodologies and our policy for classification of financial instruments within the fair value hierarchy.\n\n \n\nLevel 3 financial assets (net of derivative liabilities) during the year decreased from ¥1,330 billion as of March 2025 to ¥1,290 billion as of March 2026. Total level 3 financial assets to total financial assets carried at fair value on a recurring basis ratio was 5 % as of March 31, 2026 (6 % as of March 31, 2025.)\n\n \n\nSee Note 2 “Fair Value measurements” for further quantitative and qualitative information regarding level 3 inputs, including the sensitivity of fair values of the underlying financial instruments to changes in level 3 inputs.\n\n \n\n102\n\n##### Table of Contents\n\nCritical\naccounting\npolicy\n\n \n\nCritical accounting\nestimates\n\n \n\nKey subjective assumptions or\njudgments by management\n\n \n\nEffect of changes in estimates and\nassumptions during the year ended\nMarch 31, 2026\n\n \n\n \n\nunobservable inputs are considered.\n\n \n\nSignificance of level 3 inputs\n\n \n\n•\n\nFair values are more judgmental when we use level 3 inputs, which are based on significant non-market based unobservable inputs.\n\n \n\n•\n\nFor these instruments, fair value is determined based on management’s judgment about the assumption that market participant would use in pricing the instruments, including perception of liquidity, economic environment and the risks affecting the specific financial instruments.\n\n \n\n \n\n103\n\n##### Table of Contents"}