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Financials

Nomura Q2 profit drops on stock market slump

TOKYO, Oct 29 (Reuters) - Nomura Holdings 8604.T, Japan's biggest brokerage, said its quarterly net profit dropped 96 percent as it struggled to make money from trading and underwriting fees amid a persistent stock market slump.

Nomura, which is expanding in Asia, Europe and the United States following its purchase of part of Lehman Brothers, booked a 1.05 billion yen ($13 million) net profit for the July-September quarter, compared with 27.7 billion yen a year earlier.

The result missed the average estimate of a 5.6 billion yen profit in a poll of three analysts by Reuters.

Japan’s benchmark Nikkei share average was flat during the quarter and has stagnated as investors who pulled back following the European debt crisis continued to steer clear of Japanese stocks.

Sluggish trading has also hurt Nomura's global rivals such as and Goldman Sachs GS.N, which saw its net trading revenue slump by a third in in its latest quarter, and Credit Suisse CS.N.

For the financial year to March, Nomura’s net profit is expected to total 42.6 billion yen, according to the average forecast of six analysts. Nomura does not issue earnings forecasts.

Shares of Nomura closed down 3 percent before the earnings announcement, underperforming the securities subindex's .ISCEU.T, 1.9 percent fall. (Reporting by Tim Kelly; Editing by Chris Gallagher)

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