TOKYO • Nomura Holdings Inc’s fourth-quarter (4Q) profit fell 63% as it booked one-time provisions in the Americas that overshadowed a rebound in trading.

Net income slid to ¥22.7 billion (RM814.96 million) in the three months ended March, the Tokyo-based company said yesterday.

It set aside more than ¥30 billion in legal costs for “legacy transactions” that preceded its purchase of Lehman Brothers Holdings Inc assets in 2008, CFO Takumi Kitamura said at a briefing, declining to elaborate.

Nomura announced plans to buy back more shares.

The profit drop masked a bumper quarter for trading, as Japan’s biggest securities company joined Wall Street firms including Goldman Sachs Group Inc in benefitting from an increase in market volatility. At home, a strong start to retail business in the quarter was marred by an equity slump that slowed sales of investment products, Nomura said.

Revenue rose 20% in the 4Q to ¥511.2 billion. Trading profit increased 35% to ¥146.3 billion. Brokerage commissions climbed 6%. Investment banking fees fell 20%. Asset management fees gained 10% Full-year net income fell 8.5%. Nomura said it will buy back up to 2.7% of shares for ¥70 billion.

Last quarter’s provisions resulted in an overseas pretax loss of ¥18.7 billion, compared to profit of ¥16.7 billion a year earlier. Shares of Nomura closed 0.1% lower before the results were published. — Bloomberg