Headcount Up, but Pay Down at Nomura

Nomura's expansionary zeal within its investment bank has yet to reap many benefits, and it's been another difficult period for the bank, which posted a significant drop in second quarter earnings on the back of poor trading and underwriting revenues.

Within its wholesale division, which incorporates investment banking and global markets, revenues are up by 50.5 percent QoQ after a brutal first quarter, but year-on-year revenues have slumped by 18 percent.

Overall trading profit slid to 103bn yen, down from 148.5bn a year earlier. Equities, in particular dropped by 40.9 percent, more than offsetting the slight rise in fixed income. Investment banking fees have been on the up, though, coming in at 24.9bn yen compared to 15.6bn in 2009.

The bank says it's been encouraged by trading activity in September and October and remains convinced its "client franchise expansion" in European fixed income will lead to improvements.

But overall pay is on its way down anyway, with compensation accrual 32.8 percent less than at this point last year. Much of Nomura's headcount addition has been in the U.S., where it's launching cash equities and equity research divisions.