Nomura trades at discount despite strong asset growth and market reforms boosting segments

Nomura is currently trading at a notable discount with an 11x price-to-earnings ratio compared to global peers, despite solid performance and strong asset management inflows. Temporary costs from its acquisition of Macquarie will pressure profits in the near term, but growth in alternative assets under management remains robust. Its wholesale and investment banking segments benefit from Japanese market reforms, while wealth management margins improve as Japanese savers shift assets amid inflation. The diversified business model showed resilience in Q4, offsetting pressures in investment banking with gains in pro-volatility areas.