Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Nomura CEO says U.S. becomes profit driver despite one-off losses

Published 11/29/2022, 01:51 AM
Updated 11/29/2022, 01:55 AM
© Reuters. FILE PHOTO: Nomura Holdings Inc. Chief Executive Kentaro Okuda attends a news conference in Tokyo, Japan May 17, 2022.  REUTERS/Issei Kato/File Photo
NMR
-

TOKYO (Reuters) - Nomura Holdings (NYSE:NMR) Inc's U.S. wholesale business has emerged as a profit driver despite some large one-off losses in the region that had dragged down the bank's earnings in the past, Chief Executive Officer Kentaro Okuda said.

"The basic earnings power and cost structure of our overseas wholesale business have improved, resulting in a stable trend of profits since 2017, and the United States has driven that," Okuda said, speaking at an annual event for investors.

Nomura's wholesale division consists of the global markets and investment banking arms.

Japan's biggest brokerage and investment bank has had a long troubled history in its attempts to expand overseas, including the acquisition of assets from the collapsed Lehman Brothers in 2008 which it later wrote down.

The bank last year booked a $2.9 billion hit from the collapse of U.S. investment fund Archegos and a $345 million charge from U.S. mortgage-backed loans issued more than a decade ago.

© Reuters. FILE PHOTO: Nomura Holdings Inc. Chief Executive Kentaro Okuda attends a news conference in Tokyo, Japan May 17, 2022.  REUTERS/Issei Kato/File Photo

Okuda said the wholesale business overhaul in 2019, which included cost cuts and scaling back of lower growth segments, has helped turn the business leaner.

To help the business become more resilient to market swings, Nomura plans to boost equity, private markets products as well as advisory and wealth management businesses, he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.