Nomura Holdings Inc said the purchase of parts of Lehman Brothers would help the Japanese brokerage achieve its profit target despite poor financial market conditions.
Speaking at a media briefing on Tuesday, Shinichiro Watanabe, Nomura Holdings senior corporate managing director, said the group expected to reach its pretax profit target of 50 billion yen ($534.5 million) for the year ending March 2011 because of the positive effect of the Lehman LEMBQ.PK acquisition.
Nomura raised the profit target for its investment banking business by 20 billion yen to 70 billion for that period, while it cut the profit forecast for asset management by 25 billion yen to 30 billion.
The company maintained the profit forecast it made in April.
"Considering today's market condition, we would not be able to present the same profit forecast without the Lehman purchase," Watanabe said.
Nomura is trying to expand in investment banking after buying failed Lehman Brothers' businesses in Asia, Europe and the Middle East.
The brokerage spent $2 billion on the acquisition, including payments to Lehman employees to encourage them to stay with Nomura, Watanabe said, without elaborating.
In October it posted a net loss of 149.5 billion yen for the April-September first half and warned of potential losses ahead on its exposure to crisis-hit Iceland and stake in Fortress Investment Group.
Watanabe was speaking at a presentation made by Nomura Chief Executive Kenichi Watanabe at the Nomura Investment Forum 2008
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