Nomura Group

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Nomura Holdings Inc.
Nomura Holdings.jpg
Founded December 25, 1925
Headquarters Head Office at Tokyo, Japan
Key People Koji Nagai, Group CEO
Products investment banking
Website http://www.nomura.com/

The Nomura Group is a financial services group comprising Nomura Holdings and its subsidiaries such as Nomura Securities, in Japan and overseas. [1]

The Nomura Group, one of the largest global investment banking and securities firms, is represented in the Americas by Nomura Holding America, Inc., operating from four offices in North and South America. [2]

ALSO SEE: Nomura Securities International, Inc. (NSI), the broker/dealer arm of Nomura Holdings Americas.

Nomura Holdings Inc. took over most of the failed Lehman Brothers' business in Europe and Asia in October of 2008,[3] and it asked two former bankers from the failed U.S. firm to head its equities businesses in Europe and Asia. It appointed Sigurbjorn Thorkelsson, former head of Lehman's equity business for the Asia region, as head of Nomura's equity operations for Asia, including Japan. Rachid Bouzouba, the former Lehman head of equities for Europe and the Middle East, was appointed head of equity sales and trading operations for Europe, Middle East and Africa (EMEA).


History

Tokushichi Nomura II founded the business that later developed into Nomura Securities Co. Ltd.[4]

Nomura Securities Co., Ltd. was established on Dec 25 1925 as a spin-off from the securities dept. of Osaka Nomura Bank Co., Ltd. In 1926, it began operations in Osaka as a bond house, and in the following year it opened a New York office. Nomura obtained approval for stock trading in Japan in 1938, approval for investment trust offerings in Japan in 1941, approval for investment trust management in 1951, and licenses for a securities firm in 1968.

The company moved its head office to Tokyo in 1946. Nomura registered as a securities firm in 1948 and became a member of the Tokyo Stock Exchange the following year.

In 1960, Nomura transferred its securities operations to The Tokyo Trust and Banking Co., Ltd. The following year Nomura Securities listed on the Tokyo, Osaka and Nagoya stock exchanges.

Nomura Securities International Inc. became a member of the Boston Stock Exchange In 1969 and a member of the New York Stock Exchange in 1981. In 1986, Nomura International Limited became a member of the London Stock Exchange.

In October 2008, Nomura acquired Lehman Brothers' Asia-Pacific franchise and certain operations in Europe and the Middle East and Lehman Brothers' service platform in India.[5]

In July 26 of 2012, Kenichi Watanabe, the former CEO of Nomura, resigned over a series of insider trading scandals. He was replaced by company veteran Koji Nagai.[6]

Products and Services

Nomura’s business consists of four divisions: Retail, Wholesale, Asset Management and Global Research.[7]

Retail

The company offers retail services mainly for individuals and corporations in Japan through a network of nationwide branches. It offers investment consultation services through face-to-face meetings, communications through Nomura Home Trade, an internet-based trading service, and through its call centers.[8]

Wholesale

Nomura’s Wholesale division offers structuring, sales and trading of global securities and investment banking, including capital raising and advisory services.[9]

Global Markets consists of three businesses: fixed income, equities and asset finance. Fixed Income handles mainly debt securities, foreign currencies and commodities, as well as related derivatives. Equities focuses on equities and equity-linked derivatives. Asset Finance helps clients raise capital through real estate and asset securitization, financing and other solutions.

The company offers investment banking services to a range of corporations, financial institutions, sovereigns, investment funds and others.[10]

Asset Management

Nomura's asset management business develops and manages investment trusts and investment advisory services, primarily through Nomura Asset Management Co. (NAMCO). Investment trusts are distributed to investors through Nomura Securities Co., Ltd. as well as through financial institutions such as securities companies (including those outside its group), banks and Japan Post Bank. It also offers investment trusts in defined contribution pension plans. It provides investment advisory services to public pensions, private pensions, governments and their agencies, central banks and institutional investors.

Global Research

Nomura currently has about 560 researchers in 15 countries and regions, tracking changes and spotting future trends in politics, economics, foreign exchange, interest rates, equities, credit and quantitative strategies. It's global research covers GDP data for 38 countries, 32 different currencies, and all major stock markets in Japan, North America, Europe and Asia. In Institutional Investor's 2013 equity research rankings, Nomura topped the All-Japan Research Team for the fourth year running.[11]

The Acquisition of Lehman Brothers

Nomura spent $225 million to purchase Lehman brothers’ franchise in the Asia Pacific region, including Japan and Australia.[12] The company spent $2 to finish the acquisition of Lehman Brothers' European and Middle Eastern equities and investment banking operations.[13] The European division hired more than 150 former Lehman Brothers fixed income staff. The company also acquired Lehman's service platform in India.[14]

The acquisition of Lehman Brothers helped Nomura to secure Lehman's bankers and their connections around the world to hedge funds and decision-makers at blue chip companies.[15]

In September 2012, the bank of Nomura instigated a $1 billion cost-cutting strategy at its wholesale unit, with the cuts mainly coming in its international business in Europe. Since then, the bank’s share price rose 172.6 percent compared with a 58.5 percent rise in the benchmark Nikkei index over the same period. Financial News reported in September of 2013 that it was the only investment bank to post a double-digit rise in fixed-income revenues in the first half of 2013, with growth of 12 percent compared with a fall of 9 percent across the industry.[16]

Key People

References

  1. Nomura Group Companies. Nomura Group.
  2. WSJ : Japan's Nomura Holdings appoints Perry Hoffmeister head of investment banking in New York - Update. RTT News.
  3. UPDATE 1-Nomura names Lehman bankers as heads of equities. Reuters.
  4. About our founder TOKUSHICHI NOMURA. Nomura Group.
  5. Nomura Holdings History. Nomura Group.
  6. Nomura CEO quits as insider trading scandal widens. Reuters.
  7. Overview of Nomura Holdings Inc. Reuters.
  8. Retail Service in Nomura Group Companies. Nomura Group.
  9. Wholesale Service in Nomura Group Companies. Nomura Group.
  10. Overview of Nomura Holdings Inc. Reuters.
  11. Global Research in Nomura Group Companies. Nomura Group.
  12. Nomura Buys Lehman's Europe Banking, Equities Units. Bloomberg.
  13. Nomura seal $2 Lehman Brothers deal. telegraph.co.uk.
  14. Acquisition of Former Lehman Brothers Operations. Nomura Group.
  15. Where are Nomura’s Former Lehmanites?. The Wall Street Journal.
  16. Lehman Brothers: a tale of two takeovers. Financial News.