Nomura updates on Archegos losses
Nomura Holdings, Inc (TYO:8604) today posted a brief update on the Archegos-linked losses.
Nomura today announced that it has completed the unwinding of all its positions related to an event involving a loss arising from transactions with a US client that occurred at its subsidiaries, including Nomura Global Financial Products Inc.
On April 27, 2021, Nomura had announced that it expected to book an estimated loss of approximately $570 million in its consolidated financial results for the fiscal year ending March 2022. Today, Nomura says it will book a loss of about $600 million (approximately 65 billion yen) in the first quarter of the fiscal year ending March 2022.
Let’s recall that, in April, Nomura confirmed a significant loss due to the Archegos-linked transactions. The company said it incurred a loss of 245.7 billion yen (approximately $2.3 billion) in its consolidated financial results for the year ended March 31, 2021.
Nomura has also recognized a loss on valuation of 112.7 billion yen in its unconsolidated financial statements for the fiscal year ended March 31, 2021.
The loss on valuation is recorded as an extraordinary loss, and is due to a decrease in the net asset value of Nomura Holding America Inc. (NHA), a subsidiary holding company for the Americas. As the impairment charge is only recorded in the unconsolidated financial statements, there is no impact on Nomura’s consolidated financial results.
A detailed analysis of the Archegos FX fall-out can be read here.