Nomura Holdings Inc. is likely to post a loss for the second quarter as its overseas businesses may become unprofitable, JPMorgan Chase & Co. said.
Nomura may post a loss of ¥18 billion for the three months ending Sept. 30, compared with profit of ¥27.7 billion a year earlier, JPMorgan said in a research report dated Friday.
JPMorgan lowered its rating on Nomura shares to "neutral" from "overweight."
Nomura spokeswoman Keiko Sugai declined to comment.
Revenue at Nomura may slump to its lowest level in at least four quarters because of declining income from trading, according to the report. The investment bank has posted more losses than profit since it acquired Lehman Brothers Holdings Inc.'s Asia and European operations two years ago, inheriting 8,000 staff.
Nomura had a record ¥708.2 billion loss in the year ended March 31, 2009, followed by a profit of ¥67.8 billion a year later. Nomura's net income declined 80 percent to ¥2.3 billion for the first quarter ended June 30.
Even as its earnings deteriorate, Nomura is improving its ranking in investment banking business.
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