Nomura Q3 loss at $3.8 bn; takes hit from Lehman buy

Japanese financial services major Nomura today reported a net loss of 342.9 billion yen ($3.8 billion) in the third quarter, bearing the impact of its purchase of Lehman Brothers' Asia operations and huge trading losses amid the financial crisis.

The loss in the third quarter has come against a net profit of 21.78 billion yen reported by Nomura in the three months ended December 31, 2007, a statement said.

The global markets segment of Nomura reported a negative 171.1 billion yen net revenue and a pre-tax loss of 295.5 billion yen.

"One-off losses, including Nomura's exposure to Iceland and Madoff were booked during the quarter in addition to trading losses resulting from unprecedented market volatility," the statement said.

Commenting on the result, Nomura President and Chief Executive Officer Kenichi Watanabe said, "Last quarter was extraordinary for our industry and Nomura was no exception. However, our financial position remains strong and we are seeing results from the integration of our extensive client platform in Japan with Lehman franchise internationally."

Besides, for the third quarter, the firm would pay a dividend of 8.5 yen per share. However, the company plans to forgo the dividend for the fourth quarter, thereby fixing its overall dividend for the year at the 25.5 yen per share, the statement said.

Total revenues of the company declined 99 per cent to just 2.71 billion yen in the quarter under review as against 400.37 billion yen in the year-ago period.

Nomura also announced a number of strategic initiatives aimed at returning the firm to profitability as soon as possible.