Nomura Holdings is targeting 20% revenue gains for its global markets unit over the next few years as the Japanese brokerage moves past the Archegos Capital Management scandal with new initiatives to spur growth, according to its business head.
Macro, credit and securitized products and equities will each contribute 25% to 30% of the growth, with the remaining 15% coming from wealth management, Rig Karkhanis, who was made head of global markets a year ago, said in an interview in London. The unit’s revenue rose 8% to ¥707.1 billion ($4.6 billion) last year.
The business has increased revenue for four straight quarters, helping the company’s overseas operations return to profit in the year ended March after three years of losses that included an almost $3 billion hit from Archegos. Karkhanis’ division boosted headcount by 400 last year — the largest hiring ever — while keeping costs in check by cutting non-revenue generating roles and lowering trading costs, he said.