Nomura trades at an 11x PE discount to global peers despite solid performance.

Nomura trades at an 11x PE discount to global peers despite solid performance. The Japanese financial services giant faces temporary headwinds from Macquarie acquisition integration costs that will pressure profits through the next year. However, underlying momentum remains intact. Asset management inflows and alternative AUM growth continue to perform robustly. Investment banking and wholesale segments benefit from Japanese market dynamics and TSE PBR-related reforms supporting Japan-facing businesses. Wealth management margins are leading as Japanese savers shift assets amid inflation. While Q4 investment banking faced pressure, the diversified business model proved its defensive strength as pro-volatility trading businesses picked up the slack.