Nomura Holdings, Inc. (NMR): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed assessment of Nomura Holdings, Inc.'s business portfolio as of late 2025, and the BCG Matrix is defintely the right tool for that. We see the Investment Management Division shining as a Star with ¥101.2 trillion in AuM, while Domestic Wealth Management acts as a solid Cash Cow, hitting its best pretax income in 11 years in FY2025. Still, the Wholesale Division remains a Question Mark, performing well but lagging US peers, and we need to watch out for those low-margin Dogs that aren't meaningfully contributing to the record ¥340.7 billion net profit for FY2025; read on to see exactly where Nomura Holdings, Inc. should place its next big bet.

Background of Nomura Holdings, Inc. (NMR)

Nomura Holdings, Inc. is a financial services group that traces its roots back to its establishment in 1925. It has grown into a global entity offering a wide array of financial solutions to individuals, institutions, corporates, and governments. The company operates with a guiding principle from its founder: "Always strive to stay one step ahead - standing still is retrogressive."

The structure of Nomura Holdings, Inc. centers around four main business divisions as of late 2025. These are Wealth Management, Investment Management, Wholesale (which encompasses Global Markets and Investment Banking), and the newly established Banking Division, which officially began on April 1, 2025. The company aims to create a better world by harnessing the power of financial markets, a core part of its Corporate Philosophy.

Looking at the most recent full-year results, for the fiscal year ended March 31, 2025, Nomura Holdings, Inc. reported net revenue of 1,892.5 billion yen, marking an increase of 21.2% year on year. Income before income taxes for that full year reached 472.0 billion yen, leading to a net income attributable to shareholders of 340.7 billion yen, with a reported full-year Return on Equity (ROE) of 10.0%.

For the six months ended September 30, 2025, the consolidated net revenue was 1,038.8 billion yen, showing a 10.8% increase from the prior year's corresponding period. Income before income taxes for this half-year period stood at 296.9 billion yen. Within the divisions, the Investment Management segment reported Assets Under Management of 101.2 trillion yen as of September 30, 2025, while the Wholesale division booked net revenue of 540.3 billion yen for the same six months.

The Wealth Management division showed strong progress in its asset management initiatives, leading to its best pretax income in 11 years, driven partly by a 30% growth in recurring revenue year on year for the fourth quarter of the fiscal year ending March 31, 2025. The company also approved a resolution for the repurchase of 100 million shares of common stock, with an upper limit price of Y60 billion.

Nomura Holdings, Inc. (NMR) - BCG Matrix: Stars

You're looking at the engine driving Nomura Holdings, Inc.'s current growth trajectory, and that's definitely the Investment Management Division. This segment is where the firm is placing significant capital, aiming to convert high market share in growing areas into long-term Cash Cow status. The strategy here is clear: invest heavily to maintain leadership in key asset classes.

The Investment Management Division is the clear growth engine, with Assets under Management (AuM) hitting a record ¥101.2 trillion as of September 2025. That's a substantial figure, representing a ¥11.9 trillion increase from the end of the prior fiscal year on March 31, 2025. This growth is underpinned by ten consecutive quarters of net inflows, showing consistent client trust and demand for their products.

To further cement this leadership, Nomura Holdings, Inc. completed the $1.8 billion acquisition of Macquarie's US/European public asset management business in late 2025. This strategic move immediately added approximately $166 billion in retail and institutional client assets across equities, fixed income, and multi-asset strategies under the Nomura Asset Management brand as of October 31, 2025. This transaction is a textbook move for a Star-buying market share in high-growth international markets to accelerate global scale.

For the six months ended September 30, 2025, the division achieved its highest pretax income since its 2021 establishment, reporting ¥52.2 billion. While Stars consume cash to fuel their growth, this result shows the revenue generation is keeping pace. The overall Group income before income taxes for the same six-month period was ¥296.9 billion, illustrating the division's growing contribution to the firm's profitability.

The focus remains squarely on expanding high-growth alternative and private market assets globally. This aligns with the broader industry shift and the firm's stated 2030 Management Vision. Here's a quick look at the key metrics for this Star segment as of the latest reporting period:

The strategy involves integrating the newly acquired capabilities to build a more diversified global platform. You can expect continued investment in this area, especially in areas like private markets, to ensure these assets mature into the next phase of the portfolio. If onboarding takes 14+ days, churn risk rises, so integration speed here is key.

• Acquisition cost for Macquarie's business: US$1.8 billion.
• Assets added from acquisition: Approximately $166 billion.
• AuM increase since March 31, 2025: ¥11.9 trillion.
• The division is actively expanding its alternative assets footprint globally.

Nomura Holdings, Inc. (NMR) - BCG Matrix: Cash Cows

Domestic Wealth Management's recurring revenue base provides stable, high-share cash flow in a mature Japanese market. This business unit is a classic Cash Cow, generating significant cash flow from its established market position.

The stability of this segment is clearly demonstrated by the consistent accumulation of assets that generate predictable income streams. Recurring revenue assets saw net inflows for the 14th consecutive quarter as of Q2 FY2026.

Furthermore, the efficiency of this revenue generation is improving, moving Nomura Holdings, Inc. closer to its long-term goal. The recurring revenue cost coverage ratio reached 70% in Q2 FY2026, moving toward the 2030 target of 80%.

The financial results for the Wealth Management division underscore its cash-generating power. Wealth Management posted its best pretax income in 11 years in FY2025, driven by a 30% rise in recurring revenues over the nine-month period ending December 2024. The full-year FY2025 income before income taxes for Wealth Management was 170.8 billion yen.

You can see the key performance indicators for this segment below:

The strategy for a Cash Cow like this involves maintaining market share while minimizing investment in growth, focusing instead on operational efficiency to maximize the cash yield. The focus on cost control, evidenced by the rising cost coverage ratio, supports this passive 'milking' approach.

• Recurring revenue assets and recurring revenue both reached a record high in Q2 FY2026.
• The pre-tax profit margin for Wealth Management remained high at 39% in Q2 FY2026.
• The division's performance in Q2 FY2026 showed a 3% year-on-year increase in Income before income taxes.

Finance: review the Q3 FY2026 cost structure against the 2030 target by next Tuesday.

Nomura Holdings, Inc. (NMR) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For Nomura Holdings, Inc., the Dog quadrant likely encompasses specific, less strategic business lines that do not align with the firm's focus on stable, recurring revenue streams and high-growth international expansion. These units require attention but offer minimal return on invested capital.

Non-strategic, low-margin transactional brokerage activities within the Wealth Management segment represent a classic Dog profile. While the broader Wealth Management division showed strength, achieving income before income taxes of ¥170.8 billion on net revenue of ¥451.5 billion for the fiscal year ended March 31, 2025, this success was driven by recurring revenue assets. The transactional, low-margin component, which is highly sensitive to market sentiment, likely falls into the Dog category due to its relative lack of contribution to this growing recurring revenue base.

These activities are operating in mature domestic markets, suggesting low relative growth potential. The focus on recurring revenue assets, which saw net inflows for the 13th consecutive quarter in Q1 FY2025/26, highlights that the growth is concentrated elsewhere, leaving the transactional side stagnant.

Certain legacy, non-core international operations also fit this description. While Nomura Holdings, Inc. saw substantial profitability improvement internationally, with income before income taxes in the three international regions reaching ¥137.0 billion for FY2024/25, this aggregate figure masks underperforming units. Legacy operations that lack the scale of the Wholesale division or the strategic focus of the newer Asset Management platform are candidates for being Dogs. These units consume management time and capital without meaningfully contributing to the record ¥340.7 billion net profit for FY2025.

Here's a quick look at the segments that are clearly not Dogs, based on FY2024/25 performance, to frame the context of what is being divested or minimized:

The characteristics defining these Dog units within Nomura Holdings, Inc. include:

• Low market share in their specific sub-markets.
• Low growth rates in mature domestic or non-core international areas.
• Frequency of breaking even, neither earning nor consuming significant cash (though the prompt suggests they consume capital).
• Prime candidates for divestiture or significant restructuring.

For the six months ended September 30, 2025, the Banking division, which was newly established in April 2025, showed income before income taxes of ¥6.8 billion on net revenue of ¥25.7 billion, but its non-interest expenses increased by 27.4% year-over-year, indicating potential early-stage cash consumption that could turn into a Dog if growth stalls.

The overall group net income attributable to NHI shareholders for the six months ended September 30, 2025, was ¥196.6 billion. Any unit consuming capital without contributing proportionally to this performance is a Dog.

Finance: review the capital allocation to non-recurring revenue generating activities within Wealth Management for Q3 2025 by end of month.

Nomura Holdings, Inc. (NMR) - BCG Matrix: Question Marks

You're looking at business units that are burning cash but hold the key to future growth. These are the Question Marks in the portfolio of Nomura Holdings, Inc., operating in markets that are expanding but where the firm hasn't yet secured a dominant position. The strategy here is clear: either pour in capital to win market share quickly or divest.

The Wholesale Division, encompassing Global Markets and Investment Banking, fits this profile. It operates in a high-growth, high-volatility global market, yet its relative share lags behind major US bulge bracket competitors. This division's results are inherently cyclical. Still, it posted its best performance in 15 years for the full fiscal year ended March 31, 2025, achieving an income before income taxes of ¥166.3 billion.

The performance narrative for this segment is one of high potential coupled with market dependency. Here's a snapshot of the Wholesale Division's recent strong showing:

The newly established Banking Division, which began operations on April 1, 2025, is currently small and exhibits volatility, characteristic of a new venture. For the second quarter of fiscal year 2026 (ended September 30, 2025), this division reported an income before income taxes of ¥3.2 billion, marking a 31% decrease compared to the prior year period. This division's initial performance reflects its nascent stage and the inherent variability of its lending and trust/agent businesses.

The path forward for these Question Marks requires decisive action. Continued strong performance for the Wholesale segment relies on sustained global market volatility and the successful diversification of revenue streams across all regions and product lines. The Banking Division needs to rapidly scale its balances and successfully launch its deposit sweep service, scheduled for fiscal year 2026/2027, to move out of this high-investment, low-return quadrant.

Key factors influencing the trajectory of these units include:

• Global Markets revenue underpinned by a record high in Equities revenue in Q2 FY2026.
• Investment Banking maintaining robust momentum, especially in Japan-related M&A.
• The Banking Division's reliance on growth in lending and trust/agent balances.
• The need to quickly gain relative market share against established global peers.