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Nomura sees possible "significant" loss from US transactions
The parent company of Nomura Securities said "an event" occurred Friday and the estimated amount of the claim against the client is "approximately $2 billion."
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Pedestrians pass before a branch of Japanese securities company Nomura Securities in Tokyo on January 30, 2014. Nomura Holdings announced that a group net profit posted 152.34 billion yen in April to December, up more than sixfold from 24.81 billion yen in the previous year. (AFP/Toru Yamanaka)
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apanese brokerage giant Nomura Holdings said Monday it could post a "significant" loss as a result of its American subsidiary's transactions with a client in the United States.
The parent company of Nomura Securities said "an event" occurred Friday and the estimated amount of the claim against the client is "approximately $2 billion."
Nomura said in a statement it is "currently evaluating the extent of the possible loss and the impact it could have on its consolidated financial results," but a company official did not provide details, saying the transactions were private.
The company added the estimated amount of the claim "is subject to change depending on unwinding of the transactions and fluctuations in market prices" and said it will "make a further disclosure once the impact of the potential loss has been determined."
It also said it will cancel the issuance of $3.25 billion in corporate bonds denominated in the US dollar that were priced last Tuesday, due to the event.
Nomura said there will be no issues related to the operations or financial soundness of the group, including its US subsidiary.
However, Nomura shares on Monday briefly plunged more than 16 percent from late last week amid concerns over the possible loss. It ended the morning session at 611.30 yen, down 15.2 percent, on the Tokyo Stock Exchange.
Nomura posted a net profit of 308.52 billion yen, up 22.7 percent in the April to December period from a year earlier, the highest since fiscal 2001, due to recovery in global stock markets from the initial impact of the novel coronavirus pandemic and solid sales of its corporate business in the North American market.
