Hang in there

2 February 2011 By John Foley Follow @johnsfoley

The Japanese financial giant performed strongly in equity capital markets in the last quarter of 2010, while new hires in trading proved their worth. Japan’s fortunes may still set the pace, and the share price. But Nomura is slowly evolving into a global investment bank.

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Nomura Holdings on Feb. 2 reported net revenue of 296 billion yen ($3.6 billion) for the last quarter of 2010, a 7 percent increase on the previous three months, driven by increased equity underwriting fees and a strong performance in its Japanese retail business.

Nomura's retail brokerage reported net revenue of 98 billion yen, 11 percent up on the previous quarter, during which revenue fell sharply. Japan's Nikkei 300 benchmark stock index rose 8 percent during the SeptemberDecember quarter.

Investment banking fees increased 37 percent quarter on quarter, Nomura said. Debt capital markets fees fell slightly, but equity underwriting fees more than doubled to 22 billion yen. Markets revenue declined 2 percent quarter on quarter, with gains in equity trading offsetting declines in fixed income.

Nomura, which bought the European and Asian businesses of Lehman Brothers in October 2008, has more than doubled its headcount in the United States since March 2009. It said U.S. client revenues in the SeptembertoDecember quarter rose 14 percent. In total, 43 percent of net revenues originated from outside Japan.

On Feb. 2, Nomura shares closed up 4 percent at 516 yen.

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