A 40% surge in equities revenues, coupled with gains from the December IPO of Japanese regional lender Ashikaga Holdings, helped offset a decline in Nomura’s fixed income business in the fiscal third quarter, but higher costs dragged pre-tax profits down 37%.

The 11% rise in costs, which totaled ¥160.9 billion ($1.6 billion), kept profits at ¥27.8 billion in the three months to December, down from ¥44.4 billion in the fiscal third quarter the previous year, Nomura said today in its results presentation.