April 22, 2009 / 7:34 PM / 9 years ago

UPDATE 1-Nomura may post Y700 bln net loss for FY '08 - Nikkei

April 23 (Reuters) - Japanese brokerage Nomura Holdings Inc (8604.T) may post a net loss of 700 billion yen (about $7.2 billion) for fiscal 2008, stemming from asset write-downs and its takeover of some Lehman Brothers Holdings Inc operations, the Nikkei business daily reported.

The staggering loss is one of the largest likely to be posted by a Japanese company for the year through March, the paper said.

In addition to costs associated with retaining ex-Lehman Brothers staff, a large chunk of the expected loss stems from valuation losses on commercial real estate, loans and shareholdings, the paper said.

The company also appears to have been hit with write-downs on inventories of securities for sale to investors, the Nikkei said.

While companies like Citigroup Inc (C.N) and other U.S. banks are making use of eased fair-value accounting standards, Nomura has chosen the sternest valuation methods for its assets, the paper said.

At times, this created friction with auditors, who favored less severe write-downs, the paper said, citing multiple sources close to the matter.

Nomura was able to take the step due to a roughly 280 billion yen stock offering last month, which bolstered its weakened capital base, the Nikkei said.

$1=97.81 Yen Reporting by Supantha Mukherjee in Bangalore; Editing by Deepak Kannan

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