Nomura Holdings Inc. said it is targeting an up to 90% jump in core pretax income in three years as Japan's biggest brokerage and investment bank plans to beef up advisory services in pursuit of revenue less vulnerable to market swings.
"We will work to expand businesses with stable revenue amid extremely high market volatility," Chief Executive Kentaro Okuda said at a meeting with investors on Tuesday.
Setting out guidance in a mid-term presentation, Nomura said on Tuesday it would aim for annual pretax income of ¥350 billion to ¥390 billion ($2.7 billion to $3.0 billion) for its three core divisions in the year ending in March 2025.
That would compare with the ¥205.2 billion it posted for the year through March 2022.
One driver is the advisory business in global investment banking, particularly for sustainability-related deals driven by Nomura Greentech, a merger-and-acquisition advisor in clean technology. Nomura hopes to beef up advisory revenue by more than 50% over the next three years.
It also plans to boost wealth management businesses in Asia.
Enhancing stable revenue sources has been critical for Nomura, which has had a troubled history in attempts to expand overseas with occasional major financial hits, including a $2.9 billion loss from the collapse of U.S. investment fund Archegos.
Nomura also said it will create a digital asset company later this year that will allow institutional investors to trade products linked to cryptocurrencies, stablecoins, decentralized finance and nonfungible tokens.
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