Nomura CEO to seek 28 billion yen in extra cost reductions

NOMURA Holdings will seek 28 billion yen (S$250 million) in additional cost reductions, as chief executive officer Kentaro Okuda persists with his overhaul to boost profit.

The Tokyo-based firm plans to rebuild its IT architecture, promote digitalisation and automation as well as review office locations as part of the belt-tightening, according to presentation material released before a speech by Okuda scheduled for Tuesday (Dec 3). No specific timetable was given.

The move comes on top of a package announced last year of short- and medium-term measures to save 62 billion yen, highlighting the management’s continued focus on curbing expenses even as earnings rebound. Japan’s biggest brokerage had completed most of those steps by March, including structural changes at its wealth management business at home.

Okuda is scheduled to hold a question-and-answer session with investors following his speech at the company’s annual investment forum in Tokyo.

In the presentation, he touted Nomura’s progress towards bolstering profitability, which has improved as buoyant markets spur business across divisions. Still, the company has faced recent setbacks including regulatory penalties for market manipulation and allegations of robbery and attempted murder by an employee at a client’s home.