Credit Update FY26: Nomura’s top-tier issuer offering an attractive 6% yield starting from AUD 1,000

• Net revenue recorded double-digit growth in FY26. As of FY25/FY26 (Mar 2026), main net revenue increased 13% YoY to JPY1,962.6 billion, mainly driven by solid growth in Wholesale (up JPY104.3 billion YoY) and Investment Management (up 34% YoY) (Table 1).

• Strong growth in the Wholesale segment. Net revenue reached JPY1,162.2 billion, driven by record revenues in both Global Markets and Investment Banking, supported by a recovery in Japanese capital market activity (Table 1).

• Strong growth in Investment Management. Net revenue reached JPY258.5 billion, driven by growth in existing businesses and the expansion of international operations through acquisitions, with Assets under Management (AuM) reaching a record high of JPY136.9 trillion (~US$875 billion), supported by the acquisition of the public asset management business from Macquarie Group (Chart 1).

• CET1 Ratio Decline Driven by Acquisition and Basel III Finalisation Impact. The Common Equity Tier 1 (CET1) capital ratio declined from 14.5% in FY25 to 12.9% in FY26, mainly due to the acquisition of Macquarie’s U.S. and European public asset’s management business (JPY 275 billion), which increased risk-weighted assets (RWA), as well as the transition to Basel III finalisation methodologies, rather than credit deterioration.

• Capital Position Remains Strong Above Regulatory Minimum. Although the ratio declined to 12.9%, it remains well above the regulatory requirement of 7.7%. The CET1 ratio remains within Nomura’s internal target range of 11% to 14% and is expected to be supported by future earnings growth, which should help rebuild capital and support a gradual recovery in the ratio.

• Liquidity remained very strong. As of FY25/FY26, Nomura’s Liquidity Coverage Ratio (LCR) stood at 214.0%, slightly lower than 234.1% in FY24/FY25, mainly reflecting acquisition-related cash outflows from the Macquarie public asset management acquisition completed on 1 December 2025. Despite the slight decline, Nomura continues to maintain a robust liquidity position with JPY 10.7 trillion in liquidity resources, supporting financial stability during its current growth phase.

• Nomura remains a high-quality issuer.  Nomura credit stable with strong earnings growth, while slightly weaker capital metrics mainly reflect acquisition-related RWA increase, with all buffers still comfortably above regulatory requirements.

• The bond currently still offers a compelling yield to maturity of 6% for investors seeking defensive AUD exposure with top-tier credit quality, while still providing a yield pickup of approximately 60 basis points over Australia’s Big 4 banks (Table 3).

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Table 1: Nomura’s Revenue Segment Breakdown

Chart 1: Investment Management 's Assets under Management (AuM)

Table 2: Bond Comparison