Nomura Rides Japan Share Rally

Nomura Holdings said Thursday that third quarter operating profit jumped, helped by a yearend Japanese stock market rally.

Japan’s biggest brokerage, which is expanding in Asia, Europe and the U.S. after its purchase of part of Lehman Brothers in 2008, posted net profit of $164 million in the quarter.

The benchmark Nikkei index gained 9.2 percent in the quarter, resulting in much of Nomura’s profit rise.

Nomura chose a riskier path than its main domestic rival, Daiwa Securities, competing globally with the elite of investment banks, such as Goldman Sachs or Morgan Stanley, and making two-fifths of its revenues overseas.

The firm looks to compete in specific areas like energy and natural resources, but U.S. operations until now have been a drag on profitability.

Nearly three years since it bought a big chunk of floundering broker Lehman in Europe and Asia, Nomura offered many employees guaranteed bonuses to keep them leaving.

Nomura has lately taken a more cautious approach to U.S. expansion, choosing so far to add people to its existing operating rather than buy local rivals.

Shares of Nomura were sharply higher ahead of its results, after gaining more than 25 percent in the last quarter.

Foto: NTDTV