Since buying Lehman’s fixed income leftovers back in 2008, Nomura has lost billions across its overseas units. To add insult to injury, the company’s brokerage business in Japan is also bleeding money. Revenue has fallen for four straight quarters and Nomura recently reported its biggest quarterly loss in a decade. Massive job cuts have been announced and significant reductions in overseas operations are expected this year (read THIS and THIS).
The hope now is for a much nimbler Nomura, with less international exposure, focused exclusively on its core Japanese and Asia business. Nomura remains Japan’s largest independent broker, with a market share of almost 35 percent, making it the most trusted and recognizable brand in the country. But Nomura’s international failures continue to cripple its stock price. Until Nomura gives up its delusional global ambitions, this stock isn’t going anywhere.