...The financial results for the fiscal year ended March 2009 (FYE09) disclosed in late April by the Japanese big three securities groups (the Big Three) reflect the severe impact on their performance over the year due to the volatility in the financial markets and the recent capital markets dislocation. The big three securities groups -- Nomura Holdings Inc. (NHI, `BBB'/Stable), Daiwa Securities Group Inc. (DSGI, `BBB+'/Stable) and Nikko Citi Holdings Inc (NCH, `A'/Evolving) -- all made pretax and net losses for the year (the consolidated figures for NCH were not disclosed, so Fitch Ratings added together the unconsolidated results of its retail and wholesale brokerage arms, Nikko Cordial Securities (NCS) and Nikko Citigroup (NCG)). This special report explores the performance trends of the Big Three, maps the changing industry landscape and provides Fitch's outlook for the sector. The investment banking business is highly cyclical, with earnings and business volume linked to market sentiment...
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