(Adds details of British company sale)
TOKYO Jan 31 Japan's largest investment bank
Nomura Holdings Inc posted a 12.8 percent rise in
quarterly profit, helped by the recent rally in Japanese shares,
cost-cutting, and a large one-off investment gain.
Nomura reported net profit of 20.11 billion yen ($220.83
million) for the October-December period, compared with profit
of 17.82 billion yen in the same quarter a year earlier.
The result fell short of market expectations of 32.8 billion
yen profit, based on the average of estimates by four analysts
polled by Thomson Reuters.
The bank benefited from an upswing in Japanese stocks, which
rallied 17 percent during the quarter amid expectations of
bolder steps to boost the economy under new Prime Minister
Shinzo Abe, whose Liberal Democratic Party won parliamentary
elections last month.
Nomura's results were also bolstered by a one-off gain of 16
billion yen from selling British real estate company Annington
Homes as it scales back its private equity investments.
The bank has cutting costs under Chief Executive Koji Nagai,
who took the helm last year in the wake of an insider trading
scandal. In August, the company announced plans to chop an
additional $1 billion in costs, with a focus on trimming its
ailing European operations.
Nomura's Chief Financial Officer Junko Nakagawa told
reporters on Thursday the company had achieved half of that
target by December.
($1 = 91.0650 Japanese yen)
(Reporting by Nathan Layne, Emi Emoto and Junko Fujita; Editing
by Daniel Magnowski)