Discover your dream Career
For Recruiters

Nomura's productivity rose 60% following its layoffs

If you work in banking and you're worried about your job security, you probably don't want to look at Nomura's new investor presentation. It suggests that the Japanese bank's new strategy and the 350+ job losses in its wholesale bank earlier this year have worked a treat. 

Front office revenues 'per producer' in Nomura's wholesale bank were 60% higher between April 1st 2019 and 31st October than in the 12 months from March 2018 to March 2019, according to today's presentation.

The claim is made in the chart below, which suggests that rising 'producer productivity' is correlated with rising profitability in the wholesale division. The bank says revenue growth in its sales and trading businesses is largely responsible for the improvement.

Nomura's productivity chart

As we reported in April, Nomura 'downscaled' businesses it was less strong in, including G10FX, credit and emerging markets in EMEA and Americas. It also optimized G10 rates in EMEA, G10 FX in Asia ex-Japan and cash equities in Asia ex-Japan. Instead, it focused on its core areas like securitized products and G10 rates in the Americas. It's also been hiring for a quant trading team run by Matthew Hampson, deputy chief digital officer, and Michael Anthony, head of US rates algorithmic trading, and reporting to Jezri Mohideen, the bank's chief digital officer.

The strategy seems to have worked. Nomura was ahead of the curve in cutting its equities business in London. Traders at other banks need to hope their senior management don't decide Nomura was head of the curve in trimming fixed income too.

Have a confidential story, tip, or comment you’d like to share? Contact: in the first instance. Whatsapp/Signal/Telegram also available.

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

Photo by Hoover Tung on Unsplash

AUTHORSarah Butcher Global Editor

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Recommended Articles
Latest Jobs
Selby Jennings
Middle Office Analyst
Selby Jennings
Chicago, United States
Director, Financial Planning (Personal Wealth)
Fort Worth, United States
Larson Maddox
Patent Litigation Associate - Leading IP Practice
Larson Maddox
San Angelo, United States
Larson Maddox
Fully Remote - Employment Special Counsel
Larson Maddox
North Platte, United States
BNY  Mellon
Associate, Syndicated Loan Trading Administrator II
BNY Mellon
Pittsburgh, United States

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.