TOKYO, Jan 31 Reuters Nomura Holdings said on Wednesday it would buy back up to 4 of its own shares after reporting record net revenue from its investment banking division, fuelled by buoyant fundraising deals in a stock market boom in Japan.

Japan39;s biggest brokerage and investment bank will buy back shares worth up to 100 billion yen 677 million, the largest amount since 2019, as the bank is increasingly confident in an earnings turnaround, Chief Financial Officer Takumi Kitamura told reporters.

OctoberDecember net profit dropped 24 to 50.5 billion yen, largely reflecting oneoff gains from a partial stake sale in an affiliate that boosted yearearlier earnings.

Net revenue from investment banking jumped 30 to 45.4 billion yen, the highest since 2017, when comparable data was available, thanks to a surge in equity offerings last year in Japan, as companies took advantage of the stock market39;s rise to more than 30year highs to procure funds for growth opportunities.

A rare call by the Tokyo bourse for action plans to improve capital efficiency also accelerated the unwinding of shareholdings in affiliates and partners, a practice known as crossshareholding that investors say hinders governance and hampers returns.

Nomura39;s advisory business was also strong in Japan, where the MA market stood out against a worldwide decline last year, as low interest rates, stricter governance rules and shareholder pressure fuelled corporate restructuring and management buyouts….