Nomura expects recovery of investment banking business

Business opportunities for Nomura Holdings Inc. are expected to grow this year.

Analysts see Japan’s stock market rally plus Nomura’s competitive sales force and branch franchise as behind the company’s optimism that a recovery of its investment banking operations will take place this year.

Chief Financial Officer Junko Nakagawa said Nomura, Japan’s biggest brokerage, has a very positive view on its pipeline as the stock market and Japan as a whole are doing well.

“We want to help Japanese corporates as their business opportunities improve,” he said.

Investment banking has been Nomura’s weak link amid a resurgence in profit growth after it lost business managing bond and equity sales following last year’s insider-trading scandal. Nomura’s stock has since rebounded due to Prime Minister Shinzo Abe’s efforts to stimulate Japan’s economy.

“Japan is the hottest market in the world now, and corporates are getting more profitable,” said Akino, Tokyo-based chief fund officer at Ichiyoshi Asset Management Co. “The brokerage may be able to get more mandates in M&A, debt and equity businesses.”

Nomura expects initial public offerings in Japan to reach their highest in six years in 2013. Some 60 Japanese companies are expected to announce IPOs.