Nomura seeks profits from overseas by 2014
New chief says the Japanese brokerage giant has plans to cut US$1 billion from global expenses
Koji Nagai, who took over as chief executive last month at Nomura Holdings, Japan's largest brokerage, plans to make the firm's overseas operations profitable by June 2014.
"We are not going to lower the flag as a global bank," Nagai, 53, said. "We want be an Asia-based global investment bank."
The forecast may be a relief to investors, who have seen the stock drop to near a 37-year low as the 2008 purchase of Lehman Brothers' European and Asian units swelled costs that led to nine successive quarters of losses abroad.
Nagai aims to arrest the slide by cutting US$1 billion in expenses and improving wholesale banking operations. He is considering buying an investment bank in Asia to increase revenue.
"Nomura was trying to do too much in too many places and wasn't profitable outside Japan," said David Marshall, an analyst at Creditsights Singapore. "Adopting a more focused strategy should help to improve operational efficiencies."
The company said last week it planned to reduce costs by US$450 million in Europe and the Middle East, US$210 million in the Americas and US$340 million in Asia including Japan.
About 45 per cent of the cuts worldwide will be from trimming staff, with the rest coming from other operational expenses.