Nomura sees great opportunities to grow in U.S. despite turmoil
Nomura Holdings is setting its sights on the United States for growth despite the current turmoil surrounding the world's biggest economy.
Japan's largest brokerage said it is strengthening its focus on the Americas through "strategic resource allocation,' according to an investor day presentation, which touted the "big opportunities' there. The firm plans to advance targets for its investment management and wholesale banking businesses by pursuing long-term growth in the Americas, it said.
"Currently, market volatility is increasing due to global tariff negotiations, and the U.S. can be said to be the epicenter of all this,' Chief Executive Officer Kentaro Okuda told investors on Friday. "However, in our company's global strategy, the U.S. is the most important area rich in business opportunities, and this will not change in the future.'
Nomura is in expansion mode, having recently clinched a $1.8 billion deal to buy Macquarie Group's U.S. and European public asset management business. The firm's optimism toward the U.S. comes against wider sentiments that are more worried about U.S. President Donald Trump's trade policies overshadowing global growth prospects.
In its presentation, the Tokyo-based firm also said it aims to boost revenue from trading and investment banking business by 15% to 20% in dollar terms by March 2031. It plans to expand in private credit, structured and solutions, equity trading in Europe and Asia, and international wealth management.
Led by ex-JPMorgan Chase & Co. executive Christopher Willcox, this wholesale banking arm will seek to "ramp up productivity' of bankers in advisory business as well as global markets sales and trading operations. The division accounts for about half of Nomura's overall net revenue.
Meanwhile, Nomura also introduced a ¥50 billion ($348 million) pretax profit target for its newly created banking division for the year ending March 2031.
Nomura earned a record net profit last fiscal year, joining Wall Street titans in benefiting from trading while enjoying a boom in dealmaking and retail investing in Japan. The firm posted a 72% increase in income before taxes to ¥472 billion in the year ended this March.
At last year's investor day, the management unveiled a target to lift annual pretax profit to more than ¥500 billion by March 2031. It had also identified India and the Middle East as growth opportunities.
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