Nomura Holdings has unveiled a target to almost double its pretax profit by the end of the decade, as its Chief Executive Officer Kentaro Okuda seeks to build on last year’s earnings revival.

Japan’s biggest brokerage plans to generate income before taxes of more than ¥500 billion ($3.2 billion) by 2030 as part of a vision of "reaching for sustainable growth,” he said in a presentation to investors on Tuesday. He wants to improve profitability and limit volatility risk in the key wholesale division.

Nomura last year saw its annual profit grow for the first time since Okuda took charge in 2020 as the firm reaped the benefits of a revival in financial markets at home. Challenges persist, however, as costs remain elevated at the wholesale business that houses its trading and investment banking operations.

"We are positioning this year as an important one to achieve even better results,” Okuda said. "At the same time, it is exactly at times like these that we must launch new initiatives to create a foundation for future sources of income. We can’t stand still.”

The wholesale segment, headed by Christopher Willcox, needs to sustain growth based on "self-funding,” Okuda said. In a separate presentation, Willcox outlined a target to cut its cost-to-income ratio to 80% by the year ending March 2031 from the current 94%. The division will increase the proportion of "risk-light, low-volatility businesses,” such as wealth management, he said.

International wealth management, which had a "breakout” year, is aiming for more than $35 billion in assets under management in the medium term and $60 billion in the long term, Willcox said. In the highly competitive field where the likes of UBS Group and DBS Group jostle, he said Nomura wants to break into the top 15 wealth managers in Asia.

Nomura maintained a ¥288 billion target for combined pretax profit at its three main business segments — which also include the recently renamed wealth management division serving individual clients at home, and investment management — for the current fiscal year. It also kept a goal to increase return on equity of 8% to 10%, up from last fiscal year’s 5.1%.

Shares of Nomura have jumped 39% this year as it rode the wave of a domestic stock market rally that has seen investors flock to Japanese equities. The shares slipped 0.6% on Tuesday morning in Tokyo.

"The Japanese market is attracting a lot of attention — this environment presents a great opportunity for Nomura,” Okuda said.

The Tokyo-based company identified India and the Middle East as growth regions. In India, the firm said it plans to invest in its onshore platform to deepen its client franchise across all business lines, while in the Middle East, it plans for revenue growth in its wholesale business focused on larger accounts.

The two markets have huge business potential, Okuda said, adding that there are opportunities to expand wealth operations in India.