(Bloomberg) -- Nomura Holdings Inc.'s Rig Karkhanis anticipates revenue for the firm's global markets business to reach a record and said he will boost hiring to help execute on its broader strategy push.
Global markets revenue is likely to increase more than 20% in the current fiscal year with all regions delivering year-on-year growth, Karkhanis, the bank's Singapore-based division head, said in an interview. For the first time in a decade, the metric also rose in the nine months to Dec. 31 across all segments — including equities, macro and spread products, he added.
The performance "reflects a combination of market tailwinds as well as the investments we have made and progress on our strategic priorities," Karkhanis said. "For the next phase of growth, we will continue to ramp up and monetize the investments made as well as look at white spaces where we can grow."
Karkhanis and wholesale business chief Christopher Willcox are powering on with a strategic overhaul to diversify Nomura's markets operations around the world.
The firm aims to rebalance its business portfolio across three core pillars, targeting a 40% contribution from the equity business and 30% each from macro and spread products, according to Karkhanis. The company has been historically more tilted toward macro, which contributed about 40% of revenue, he said.
Revenue at the global markets division has grown in each of the last seven quarters, with all regions delivering better performance over the prior year, he added. The fiscal year ends next week and Nomura is scheduled to report results on April 25.
The Tokyo-based firm plans to add additional salespeople across equities and fixed-income businesses. The focus is to expand the structuring and solutions business mainly in the US and Europe, Middle East and Africa to enhance ties with newer clients such as insurers and private banks.
Nomura is also seeking to build up its securitized products and private credit businesses in the US, and wealth management in Asia.
It has already hired about 500 people in the last two years, including for equity and rates products in EMEA and for international wealth management in Asia ex-Japan. The overall headcount is flat due to natural attrition.
In the past two years, the Japanese brokerage has revamped trading teams for its rates and fixed-income business in EMEA and made several senior hires for wealth management. It reorganized its global securitization and financing businesses under a single umbrella, and brought in new talent for equity trading. Karkhanis also cut non-revenue generating roles.
'Very Strong Recovery'
The currencies and emerging markets business, particularly foreign-exchange options and structured rates products, have seen "a very strong recovery" so far this year, after having a couple of difficult years as China's economy slowed, Karkhanis said. Products related to currencies and emerging market rates historically contributed 10% of global markets revenue, he said.
India and China account for over half of the division's Asia ex-Japan revenues and offer compelling expansion opportunities, he said.
"China is becoming more active looking at international investors in the credit space," he said. "That's quite positive after a very slow last two to three years."
More stories like this are available on bloomberg.com
