Nomura plans to expand in India, China next year

Nomura plans to expand in India, China next year

Tokyo/New Delhi: Japanese financial services major Nomura on Wednesday said it is planning to significantly expand its base in India and China next year, says a media report.

Nomura acquired the European and Asian operations of collapsed Lehman Brothers in 2008.

In an interview with the Financial Times, Nomura chief executive officer (Asia operations, excluding Japan) Minoru Shinohara said the bank intended to expand significantly in China and India next year.

The report quoted Shinohara as saying that the bank planned to establish an onshore presence in China. He added that Nomura was in discussions with several Chinese groups with a view to launch a fixed-income and securities business.

“In a short period of time, more than 70-80% of investment banking fees in China will be generated by locally transacted business and we want to be a leading player in that market," he said.

In India, Nomura offers fixed income products, trades local equities and has investment banking and asset management capabilities. In addition, the report said it has applied for other banking licences to expand its footprint.

Apart from expanding its presence in India and China, the financial entity is also stepping up its recruitment drive in the US.

Shinohara told FT that the hiring in the US would include bankers, traders and support staff, and would be split between its equities, fixed income and investment banking units.

The daily, however, added that Nomura has no plans to renew controversial guaranteed bonuses for former Lehman Brothers’ staff who joined the Japanese bank last year.

At the time of acquiring European and Asian operations of Lehman Brothers, Nomura had agreed to pay several hundred former Lehman employees bonuses over a two-year period. The generous packages led to a huge spike in Nomura’s costs.

Shinohara’s comments come amid a mounting global backlash against banker’s compensation, with public anger at the prospect of huge bonuses at US and British banks.

“Our pay has to be competitive but we are moving towards a system better aligned to long-term performance and ... respectful of the global regulatory environment," the FT quoted Shinohara as saying.