Stock Markets February 17, 2026

S&P Upgrades Nomura Outlook to Positive Citing Stronger Stable Earnings Mix

Rating agency affirms credit ratings while highlighting growth in wealth and investment-management revenues and moderation of earnings volatility

By Sofia Navarro
S&P Upgrades Nomura Outlook to Positive Citing Stronger Stable Earnings Mix

S&P Global Ratings has moved its outlook on Nomura Holdings and key subsidiaries from stable to positive while keeping existing long- and short-term credit ratings intact. The agency pointed to growth in recurring revenues from wealth management and expanded assets under management following strategic acquisitions as drivers of a more sustainable earnings base. S&P also flagged expectations for Nomura's risk-adjusted capital ratio to stay near 8%-9% over the next one to two years and reiterated the group’s systemic importance to Japan’s financial system.

Key Points

  • S&P raised Nomura's outlook to positive but kept long- and short-term ratings unchanged ('BBB+/A-2' on Nomura Holdings; 'A-/A-2' on core subsidiaries).
  • Stable revenue now covers about 30% of group operating expenses; wealth management generates roughly 40% of income before taxes across segments.
  • Nomura expanded stable revenue abroad with 2025 acquisitions from Macquarie and has shifted capital allocation toward investment management and banking to lower earnings volatility.

S&P Global Ratings has revised the outlook on Nomura Holdings Inc. and its main subsidiaries to positive from stable, while leaving the current credit ratings unchanged.

The firm retained Nomura Holdings' issuer credit ratings at 'BBB+/A-2' for long- and short-term obligations, and upheld 'A-/A-2' ratings on core group units, including Nomura Securities Co. Ltd.

S&P pointed to Nomura's ongoing efforts to build a more durable business foundation, noting that recurring revenue streams from the wealth management division and growth in assets under management within investment management have strengthened the group's earnings profile. According to the rating agency, revenue sources deemed stable now cover roughly 30% of the operating expenses across all segments, and the wealth management business accounts for approximately 40% of income before taxes for the group.

These shifts, S&P said, should help the group better absorb periods of market stress by stabilising earnings that historically were more exposed to market swings.

The agency also cited an improving domestic backdrop in Japan as a supportive factor. That environment includes government measures to encourage household securities investment, a moderately higher interest-rate setting, and robust corporate activity such as mergers and acquisitions.

On the strategic front, Nomura expanded its stable revenue base overseas in 2025 by acquiring U.S. and European public asset management businesses from Macquarie Group Ltd. The group has been reorienting capital allocation away from the wholesale business toward investment management and banking, while introducing a wider range of products in its wholesale operations to reduce earnings volatility.

Regarding capital, S&P expects Nomura's risk-adjusted capital ratio to remain in the 8%-9% range over the next one to two years. The ratio declined to 9.6% at the end of March 2025, down 3.5 percentage points year-on-year, a move the agency attributes to tighter regulatory requirements. Separately, the group's consolidated Tier 1 ratio fell to a preliminary 15.0% at the end of December 2025.

S&P reiterated that Nomura's significant systemic role within Japan's financial system continues to underpin its credit profile, with the prospect of extraordinary government support incorporated into the ratings assessment.

The rating agency said it could consider an upgrade if Nomura continues to strengthen its stable earnings base while preserving adequate capital metrics. Conversely, the outlook could be returned to stable if the group's operating performance showed large swings, capital ratios deteriorated markedly, or if funding resilience weakened under adverse market conditions.

Risks

  • Operating performance volatility - substantial swings in operating results could prompt S&P to revert the outlook to stable, affecting banking and investment-management sectors.
  • Capital erosion - a sharp deterioration in capital ratios could undermine credit metrics and ratings, directly impacting Nomura's balance-sheet resilience.
  • Funding stress - weakness in funding under adverse market conditions could put pressure on the group's liquidity and credit profile, with broader implications for wholesale banking.

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