Nomura Holdings Chief Executive Officer Kentaro Okuda slashed earnings targets across the firm¡¯s main businesses and is planning a review to revive profitability after net income fell for three straight years under his leadership.
Japan¡¯s biggest brokerage pointed to a changing macro environment and interest-rate hikes as it lowered its combined pretax profit goal for the retail, wholesale and investment management divisions to ?288 billion ($2.1 billion) for the year ending March 2025, from the previous target of as much as ?390 billion, according to a presentation at the firm¡¯s investor day on Thursday.
Okuda said the firm is planning to conduct a major review into its ways of doing business for ¡°all of the front, middle and back offices¡± with the goal to achieve return of equity of 8% to 10% over the medium term, after the key measure of profitability slipped to 3.1% in the year ended March.
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