UPDATE 1-Japan's Nomura posts Q2 net profit of $1.3 bln, third straight quarterly profit

quarterly profit@

* Q2 net profit 138.6 bln yen vs 11.2 bln loss year prior

* Wholesale division posts 18.9 bln yen pretax profit (Adds reason for profit return, wholesale division performance)

TOKYO, Oct 29 (Reuters) - Nomura Holdings posted a second-quarter net profit of 138.6 billion yen ($1.3 billion), compared with a loss in the same period a year ago.

The return to black from a second-quarter loss of 11.2 billion yen last year was driven by trading gains and gains on equity investments and marks a third straight quarter of profit.

Japan's biggest brokerage and investment bank has been restructuring and in April it announced a plan to cut more than $1 billion in costs from its wholesale business and shut some of its domestic retail branches.

Second-quarter pretax profit for its wholesale division was 18.9 billion yen, compared with a 5 billion yen profit for the same period a year earlier.

Though its business is on a stronger footing than last year when it posted its first annual loss in a decade, its reputation was hit in May when regulators censured it for leaking information related to listing and delisting criteria to clients.

That led to the government leaving it out as an underwriter in a Japan Post share sale and Chief Executive Koji Nagai taking a 30% pay cut for three months. ($1 = 108.9700 yen) (Reporting by Takashi Umekawa and Sayantani Ghosh; Editing by Edwina Gibbs)