Japan’s largest brokerage Nomura is seeking to boost revenue via wealth management as well as its equities and private markets businesses.
Nomura will look to increase focus on its international wealth management unit, according to a presentation by group chief executive Kentaro Okuda, as part of broader plans to grow overall revenue at the Japanese brokerage giant by $1 billion or more.
Alongside its advisory unit, the two are considered capital-light businesses which are expected to see a boost in growth and productivity. Other businesses that will be key drivers of revenue growth include private markets and global equities.
In February this year, Nomura’s global wealth head Ravi Raju said that the Japanese private bank had hired over 50 relationship managers from rivals to target Asian wealth and attracted about 600 clients over the previous 12-month period. Nomura will add another 50 relationship managers in the next two years – bringing the total to between 135 and 150 – with a focus on coverage of Greater China clients.
Weak Outlook
According to the presentation, rising interest rates and market volatility are slowing Nomura’s key businesses, from brokerage fees to stock underwriting. For the six-month period ending in September 2022, Nomura saw its net income plunge by nearly 71 percent.
In addition to boosting revenue, Nomura will also look to shrink its cost base by reviewing some administration expenses and its location strategy for the wholesale business as well as headcount cuts and closure of branch ATMs.
