Asia Times: Nomura reports $3.3bn loss



	April 27, 1999	atimes.com

Japan Economy

Nomura reports $3.3bn loss

TOKYO - Nomura Securities Co., Japan's largest brokerage, said it lost 397.5 billion yen ($3.3billion) in the year ended March 31, its biggest loss ever and the second in the past three years.

The loss is in line with the 300 billion to 500 billion yengroup net loss forecast by four analysts surveyed by BloombergNews. The broker reported a 76.3 billion yen profit a year earlier.

Nikko Securities Co., Japan's No. 3 brokerage, earlier Friday said it lost 177.5 billion yen for the year, more than double itsloss a year earlier, as it sank deeper into the red at home andoverseas.

Nomura reported $1.2 billion in trading losses on U.S.mortgage and Russian government bonds at the half year. Thebroker also took a 348 billion yen charge to bail out itsmortgage-finance affiliate Nomura Finance Co.

The three big brokers ''are going to lose their shirts ontrading losses, and absorbing problems loans from their non- banking affiliates,'' said Brian Waterhouse, an analyst at HSBCSecurities Japan Ltd. ''They've been saying that for a while now,but we may not have hit bottom yet."

Still, Nomura turned in a 45 billion yen pretax profit onits domestic business, up 11 percent from a year earlier, thanksto a nearly 22 percent rally in the TOPIX index of companies onthe first-section of the Tokyo Stock Exchange for the threemonths through March.

Nomura's stock rose 9 yen, or 0.7 percent to 1,256. Itannounced its earnings after the market closed.

Nikko said it would reduce its dividend to 3 yen pershare, down 2 yen from the previous year. Nikko shares rose 20 yen, or 3 percent, to 675 yen before the announcement, made after trading closed.

(Bloomberg)

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©1999 Asia Times Online Co., Ltd.