Nomura is the latest bank to release quarterly results. As predicted, it's now profitable again, thanks largely to its global markets (sales and trading) business, where revenues increased a mere sixteen-fold year on year.
Given the revenue rise, Lehman staff appear now to be paying their way: spending on compensation and benefits no longer exceeds net revenue, and at 46% Nomura's comp ratio compares very favourably to the likes of Morgan Stanley's.
However, Nomura doesn't look too hot in investment banking.
Despite the addition of Lehman's European business, Nomura's investment banking revenues were down nearly 8% year on year in the past quarter. This may be because the global fee pool has fallen around 50% over the same period. Or it may be because Lehman's investment bankers haven't proven as transportable as its equities traders (they ranked third for completed M&A in Europe in the third quarter according to Thomson Financial, so should have provided some kind of fillip for their new owners).
Either way, the investment banking non-event is prompting calls for Nomura to raise its game. Insiders say the bank is already hiring 'hundreds' of capital markets and M&A professionals globally, but that the pipeline takes a while to build.
During US training, Nomura split out men from women and taught women how to wear their hair, serve tea [our emphasis], and choose a wardrobe. (Wall Street Journal.)
Key architect of the new Nomura is resigning. (Wall Street Journal.)
Mysterious increase in the pass rate for CFA level 1. (Bloomberg)
John Kingman leaving UKFI, wants a job in an investment bank. (Telegraph)
Draft EU hedge fund rules to be revised. (Financial Times)
Macquarie profits to be down as a result of large and lumpy deals. (Financial Times)
US law to ban bonuses makes it through first stage of approval process. (Bloomberg)
Bashing Goldman Sachs Is Simply a Game for Fools. (Bloomberg)
On the appearance of staff at Goldman Sachs: "They all looked like they were from a university biology laboratory." (Planet Money)