Nomura, the Japanese financial giant, is set to decrease risk assets within its wholesale business

30 Nov, 2023

Nomura, the Japanese financial giant, is set to decrease risk assets within its wholesale business

Nomura Holdings announced on Wednesday its strategic move to bolster capital efficiency by reducing risk-weighted assets by up to 6% in its struggling wholesale business. This initiative is part of the top Japanese investment bank's ongoing efforts to address challenges and enhance financial resilience.

In a presentation to investors, Nomura's CEO, Kentaro Okuda, outlined the plan to reallocate resources within the group. The adjustment involves optimizing positions in overseas macro products while concurrently reinforcing resources in Japan-related business sectors. This strategic reshuffling aims to streamline operations, enhance profitability, and fortify the bank's capital position.

Additionally, Nomura is implementing a cost-cutting strategy for the wholesale division, targeting an additional $100 million reduction. The objective is to trim total costs to approximately $5.1 billion by the fiscal year ending March 2025. This cost-cutting measure aligns with Nomura's broader strategy to improve financial performance and sustain long-term stability.

Nomura's move reflects a proactive response to the evolving economic landscape, demonstrating its commitment to adapting to challenges and reinforcing its market position. The emphasis on capital efficiency and targeted cost reductions underscores the bank's dedication to navigating the dynamic financial environment effectively.