Are you bold enough to work for Nomura?
Want to work for a Japanese bank with global aspirations? Nomura International is hiring. The Japanese bank has declared its intention of adding around 20 senior M&A bankers in the US and Asia. Chief executive Koji Nagal says the bank is boosting its electronic trading and investment banking business overseas and focusing on asset management in Japan,
That sounds like good news if you want to work for Nomura and you're not based in Tokyo. But there are caveats. As Bloomberg points out, [efc_twitter text="Nomura's international business isn't actually profitable"]. It's pre-tax loss was 7 billion yen last quarter, down from 8.2 billion yen a year before that. Nor are things looking particularly healthy across Nomura's wholesale bank globally. Witness the chart below.
Things look particularly dreary at Nomura's European business, in which the fixed income sales and trading engine which had been so reliable in the past seemed to falter in the third quarter. Revenues in Europe fell 44% year-on-year. Nomura said this was down to a "sharp decline in both fixed income and equities."
Nonetheless, Nomura is hiring. Last year it continued to bolster its fixed income business. This year it continues to bolster its M&A business. Will it all work out? After four years of losses overseas, the bank is reportedly on track to turn in a profit for the 12 months ending in March. This doesn't augur well for bonuses (particularly in Europe), but [efc_twitter text="Nomura's international bankers need to hope their employer turns in a profit sometime soon."] Four years is a long time to wait and the bank's patience may yet run out.