Nomura’s Revival Faces Challenge From Ambitious Japan Megabanks

Nomura Holdings Inc. has marked its centennial with all the outward trappings of strength: a glittering new office tower, a big acquisition and slick TV commercials. Japan’s largest brokerage is posting record profits, and its stock is trading at levels unseen in more than 17 years.

Yet, the internal mood hasn’t all been celebratory. When Chief Executive Officer Kentaro Okuda posted a message on Nomura’s network late last year, he said it’s when things are going well that the company must address the challenges ahead, according to employees who asked not to be identified. In private, he also told senior executives that the profit rebound is partly due to tailwinds from the economic cycle, a sign he is concerned about complacency.