Nomura Holdings Inc.'s investment banking business in Asia is set to return to profit this fiscal year after more than a decade of losses since its Lehman Brothers Holdings Inc. acquisition, according to its division chief.

Cost cuts and fees from financing will drive the profit rebound in the year ending March 31, said Kenji Teshima, head of investment banking for Asia excluding Japan. Revenue is set to rise by about one-third, led by private financing and dealmaking in India and Australia, he said, while warning that some transactions in China may be affected by the COVID-19 outbreak.

Japan's biggest securities firm last year unveiled plans to cut $1 billion of costs at its struggling global wholesale operation, helping to revive profit that's been under pressure from years of losses abroad. Teshima's group is benefiting from the firm-wide savings even as he keeps net head count largely unchanged.