Japan's largest brokerage and investment bank recorded its biggest quarterly net loss since the 2008 global financial crisis.
Nomura recorded a net loss of 155.4 billion yen ($1.43 billion) for the first quarter of 2021, reversing its 98.3 billion yen profit from the quarter before, and suffering a greater loss than the first quarter of 2020, which saw the firm lose 38.48 billion yen as a result of the ongoing Covid-19 pandemic, according to financial statements published on Tuesday.
According to «Reuters,» Nomura had been on track for a record annual profit on the back of its growing U.S. trading business. For the year ended 31 March 2021, Nomura recorded 153.1 billion yen in profit, down 29 percent from the year before, and below analyst estimates of 160 billion to 230 billion yen.
Collateral Damage
Nomura's 245.7 billion yen hit as a result of Archegos, Bill Hwang's family office that collapsed last month, was the second-largest after Credit Suisse.
Global bank losses are estimated to be as high as $10 billion, with Credit Suisse booking a 4.4 billion franc hit for the January-March quarter, with another 600 million franc loss expected this quarter. Other banks singed by Archegos include UBS, Morgan Stanley and Mitsubishi UFJ.
