Tokyo: Nomura Holdings Inc., Japan’s biggest securities firm, announced annual net losses of more than $650 million as the subprime mortgage crisis battered its bottom line.
Net losses came to 67.85 billion yen ($651.8 million) in the financial year to March, a far cry from the profit of 175.83 billion yen that the company enjoyed the previous year. Revenue plunged 22.2% to 1.59 trillion yen.
Nomura announced in October its exit from US mortgage-backed securities after suffering large losses because of a wave of defaults in US subprime, or high risk, home loans.
The company has already announced plans to slash 400 jobs or 30% of the workforce at its US operations due to the US mortgage woes, which have roiled global markets since erupting last August.
Japanese banks have also reported subprime losses, although they are believed to be less exposed than many of their major US and European counterparts due to a relatively low-risk business strategy.