Nomura posts Q4 profit on rebound in Japan stocks

Nomura Holdings posted on Friday its second straight quarterly profit on a pick-up in Japanese stocks and mutual fund sales, while cost cuts and overseas mandates lay the foundation for an expected jump in profitability this year.

Japan's top investment bank said its net profit came to 22.08 billion yen for the January-March fiscal fourth quarter, compared with market expectations for a profit of 14.9 billion yen, according to a Reuters survey of 7 analysts.

Nomura booked a 17.8 billion yen profit in the October-December quarter.

The results show Nomura has stabilised its operations after a rocky 2011 when heavy losses overseas prompted it to launch a $1.2 billion cost-cutting plan and Moody's to cut its credit rating to one notch above junk.

Nomura has landed roles in a handful of key overseas deals, including acting as adviser to mining group Xstrata on its merger with commodities trader Glencore, raising expectations for an increase in banking fees this year.