Nomura shuffles global markets leadership amid losses abroad

Nomura Holdings Inc shuffled management of its global markets division, appointing new heads for Europe and the US in an effort to boost revenue and secure a profit recovery outside of Japan. 

PHOTO: REUTERS

23 Apr6:06 PM

[TOKYO] Nomura Holdings Inc shuffled management of its global markets division, appointing new heads for Europe and the US in an effort to boost revenue and secure a profit recovery outside of Japan.

Yutaka Nakajima was named global markets head for Europe, the Middle East and Africa, the Tokyo-based company said in a statement on Thursday. He replaces Gary Cottle. Jonathan Raiff will take the equivalent role for the Americas, succeeding Charles Spero. The appointments take effect on May 1.

Japan's largest brokerage is seeking to end four years of losses abroad as it rebuilds businesses after cutting costs. The firm will probably achieve a goal of 50 billion yen (S$562 million) in annual pretax profit from overseas by March 2016, Chief Financial Officer Shigesuke Kashiwagi said in October.

Yasuo Kashiwagi was appointed co-head of global markets and will work closely with Steve Ashley, who is head of the division, according to the statement. Toshiyasu Iiyama will become chief executive officer for Asia excluding Japan.

CFO Kashiwagi said in January that Nomura would have to review business performance abroad "more strictly" than in the past and may cut costs across front, middle and back offices. Global markets revenue fell 5 per cent in the three months ended December, led by a drop in fixed-income business in the Americas and Europe, Nomura's latest results show.

CEO Koji Nagai has been trying to turn around overseas operations after costs swelled following his predecessor's purchase of Lehman Brothers Holdings Inc businesses in Europe and Asia in 2008.

Despite the losses abroad, profit at Nomura and domestic peer Daiwa Securities Group Inc has rebounded in the past three years as Japan's stock-market rally boosted brokerage income.

Shares of Nomura climbed 2.9 per cent at the close of Tokyo trading on Thursday, extending this year's gain to 13 per cent. The Nikkei 225 Stock Average has advanced 16 per cent in 2015 to a 15-year high.

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