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Nomura Boosts Profit Goals, Eyes Stable Growth
28 May
Summary
- Nomura aims for at least ¥750 billion pretax income by March 2031.
- The firm targets a 10%-12% return on equity by March 2031.
- Cost cuts totaling $500 million are planned, utilizing AI.
Nomura Holdings Inc. is raising its profit objectives after achieving record earnings, signaling a strategic shift under CEO Kentaro Okuda towards sustained growth. The company now targets a minimum of ¥750 billion in annual pretax income by the fiscal year ending March 2031, a significant increase from its prior goal.
This revised ambition also includes a higher return on equity target of 10% to 12% for the same period. These adjustments reflect the firm's improved earning power since its 2030 vision was introduced two years ago, as stated by Okuda.
In parallel, Nomura has committed to substantial cost savings of $500 million. These measures involve enhancing operational efficiency through artificial intelligence and optimizing its IT infrastructure, underscoring a focus on expense control alongside revenue growth.
The brokerage's wholesale division, a key segment for its securities traders and investment bankers, has also seen its return on equity target for fiscal 2030 increased to over 10%. This division experienced its highest pretax profit in the last fiscal year, benefiting from robust stock trading and merger advisory activities.
