Spiking volatility and plunging yields posed a big challenge for Nomura’s wholesale operations in Europe and the US in the final quarter of 2014, dragging revenues from outside Asia – which a year earlier had been the unit’s main revenue generator – down to just a third of overall revenues.

The Japanese bank said revenues from its wholesale division, which houses its investment banking and markets, or trading operations, fell 5% year-on-year to ¥178.9 billion ($1.5 billion) in its fiscal third quarter to December 31. Pre-tax profit at the wholesale division fell to just ¥500 million, down 98% year-on-year, due both to a higher cost base caused by the depreciation of the yen and reduced international revenues.