Japan's biggest brokerage may report its first loss in five quarters this week on a slump in trading and investment banking earnings, according to analysts.
Nomura will probably report a loss of $3.8 million for the three months ended June 30, compared with a profit of about $130 million a year earlier, according to the average of four estimates in a survey by Bloomberg News.
Swings in stock and bond markets and signs of economic headwinds in the U.S., Europe and China have deterred clients from trading and making share sales, crimping earnings at global rivals including Goldman Sachs Group Inc. and Credit Suisse Group AG.
"The company needs to gain more market share in the investment banking business by expanding its U.S. operation to boost revenue," said Wataru Kasatani, a senior analyst at MDAM Asset Management Co. in Tokyo, which oversees about $2.5 billion in Japanese stocks. "It is overshadowed by its overseas rivals, and its smaller revenue means it has a lower break-even point." Nomura is to announce fiscal first-quarter earnings on July 30.
