Pre-tax profits from capital markets and wholesale banking at Nomura, Japan's largest securities group, fell by 38% last year to ¥86bn (€628m) on the back of lower fixed income trading income and record compensation costs.

This plunge in profits from Nomura's global wholesale banking division - the largest contributor of revenues and includes investment banking, merchant banking, fixed income, equities and asset finance - slashed net profits and return on equity at group level by around half in the year to the end of March.