TOKYO -- Nomura reported on Friday a 57% fall in pretax profit for the April-June quarter, as the Japanese brokerage house looks to rebound from a massive loss on trades with Archegos Capital Management.

Three-month pretax profit came to 78.5 billion yen ($710 million), as revenue fell 21% to 405.1 billion yen.

The results came after two other Japanese brokers, Daiwa and SMBC Nikko, reported double-digit increases in revenue in the first quarter on strong sales of investment trusts to individual investors.

The massive loss on trades with the investment company of Bill Hwang, a former hedge-fund manager, has illustrated the need for Nomura to do more to stabilize revenue as it aims to achieve a pretax profit increase of nearly 40% over the next two years under a plan announced in May.

Nomura also said in May that it had disposed of all the positions related to Archegos, a New York-based investment company and family office, and would book a loss of $600 million in April-June, bringing the total loss to $2.9 billion.

The loss was caused by a plunge in stocks held by Archegos. The investment company used these stocks as collateral for loans from brokers, including Nomura and Credit Suisse.

Following the loss, announced on March 29, Nomura said that it had hired a law firm to conduct a review of the trades, and also tasked third-party experts to reevaluate the risk management framework at the company's trading operations.

The company has also appointed a former J.P. Morgan banker as its new chief for U.S. operations. The loss took place at the prime brokerage unit, an operation dealing with hedge funds and family offices.

Nomura CEO Kentaro Okuda said in May the prime brokerage service will be continued as part of a broader business with hedge funds, but that a business that only involves lending to hedge funds will be discontinued.