UPDATE 3-Nomura posts Q1 profit as Lehman deal pays off

miércoles 29 de julio de 2009 12:50 CEST

* Nomura says Lehman acquisition is paying off.

* Nomura turns profit on underwriting, trading

* Shares end down 0.7 pct before results (Writes through, adds an analyst comment)

By Junko Fujita

TOKYO, July 29 (Reuters) - Nomura Holdings Inc (8604.T: Cotización) posted its first profit in six quarters in a sign Japan's largest brokerage has started to leverage its acquisition of Lehman Brothers' assets to bolster its global presence.

Nomura is coming off a $7 billion loss in the past business year when it was weighed down by heavy costs to acquire Lehman's Asian, European and Middle East operations and merge its operations with the failed investment bank.

While taking a cautious tone on its prospects for a full-fledged profit recovery, Nomura said the acquisition was starting to pay off in an expanded reach in global equity and bond markets and in helping it land cross-border deals.

The brokerage, ranked as the No.1 equity underwriter in Japan in the April-June quarter, has also been in a prime position to profit from a rush by Japanese companies to sell shares into the recent upswing in the stock market.

"Nomura should be praised in a certain way for its purchase of Lehman," said Azuma Ohno, a brokerage analyst at Credit Suisse Securities. "Looking at the profit growth at its global market division, we can see how the acquisition has been working."   Continuación...