Several senior dealmakers are leaving Nomura Holdings Inc. in Asia as the investment bank reacts to a slump in fees with broader global cuts, according to people familiar with the matter.
(Bloomberg) — Several senior dealmakers are leaving Nomura Holdings Inc. in Asia as the investment bank reacts to a slump in fees with broader global cuts, according to people familiar with the matter.
Hong Kong-based managing directors Maryann Tseng, who joined the equity capital markets team last year, and Wallace Wong in mergers and acquisitions are both departing, the people said, asking not to be identified discussing private matters. Bernard Lim in Singapore is also leaving, and the firm is closing its small Malaysia investment banking operation, the people said.
The majority of reductions are focused on areas where Nomura has limited scale, one of the people said.
“2022 saw a material deterioration in global investment banking fee pools and, as a result, we have had to reduce headcount in certain areas,” a representative for Nomura said. “These changes are designed to ensure we retain focus in our key areas of competitive advantage, while maintaining core capabilities to position the platform for sustainable profitability.”
Tseng and Wong did not immediately respond to requests for comment sent via LinkedIn.
Globally, the world’s biggest investment banks last year endured their worst period for dealmaking and fundraising since 2016 after surging interest rates and economic gloom chilled the sector, contributing to retrenchment and thousands of cuts.
Goldman Sachs Group Inc. plans to eliminate about 3,200 positions, according to people familiar with the matter earlier, adding to cuts at Morgan Stanley and Credit Suisse Group AG.
Read more: Here’s Where Wall Street Firms Stand With Job Cuts (2)
While Nomura has been trying to diversify its revenue streams, a global plummet in dealmaking and stock issuance is complicating those efforts. Nomura’s investment banking revenue fell 21% from a year earlier in the three months ended Sept. 30.
Chief Executive Officer Kentaro Okuda last year tapped Christopher Willcox to oversee operations including global trading and investment banking, counting on the Wall Street veteran to bolster a division that generates roughly half of the brokerage’s total income.
In Asia, China’s regulatory crackdowns, stringent Covid policies, and rising political tension with the US, have also forced companies to put off capital raising plans.
Morgan Stanley considered cutting about 50 investment banking jobs in Asia Pacific after dealmaking in the region plunged last year, people familiar said in November. Goldman Sachs cut at least 25 roles in Asia, people familiar said in September.
–With assistance from Takashi Nakamichi.
(Adds global cuts at Wall Street banks in seventh paragraph.)
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