Nomura kept in red by Lehman burden
Nomura's acquisition of parts of Lehman Brothers continues to haunt the Japanese finance giant, which today reported a 342.9 billion yen (£2.76 billion) loss — its fourth consecutive quarter in the red.
The third quarter saw Nomura, which is axeing 1000 London jobs, still struggling to digest Lehman as bad loans mount and equity values plunge. A year before, it had profits of 21.8 billion yen.
The trading loss was 134.5 billion yen against a 65.1 billion yen profit a year earlier.
Chief executive Kenichi Watanabe says costs will rise to $2 billion (£1.45 billion) for the takeover of Lehman's Asian and European businesses, and says he has no idea when they will start to contribute earnings.
Revenue plunged 99% to 2.7 billion yen in the three months to December, with brokerage commissions down 29%. The company's shares are 33% lower than a year ago.
Lehman has also proved a poisoned chalice to Barclays, which bought the failed Wall Street firm's US business.
Nomura said last month it would fire up to 1000 employees in London, including former Lehman staff.
