The UK-based unit of Nomura Holdings, Japan's biggest brokerage, saw a three-fold increase in its pretax loss in its 2008/09 financial year as staff costs jumped after its purchase of Lehman Brothers.

Nomura International, which was also hit by its exposure to the Bernard Madoff fraud and Icelandic banks, had a £1.3 billion pre-tax loss in the year to the end of March compared with a £432 million loss in 2007/08, according to accounts recently filed at Companies House.

The Japanese brokerage took over Lehman's Asian, European and Middle East operations last September when the US investment bank collapsed.

Nomura last month reported its first profit in six quarters and said the figures showed the merits of the Lehman deal, which gave it a stronger global presence. The European business made a 15.4 billion yen ($160 million) profit in the quarter.

Nomura was also the top equities trader in London last month for the first time since the Lehman deal, taking the leading position Lehman used to hold.

The deal prompted concern of a cultural clash between Nomura staff and the new arrivals, especially as many of the Lehman bankers were offered long-term lucrative pay deals to prevent an exodus of top staff.

Nomura International's wages and salaries jumped to £691 million in the year to March, up from £190 million the year before. Staff in the international arm jumped to 3,058 from 1,218, almost all in London.

Restructuring costs totalled £22 million, and bonuses for directors increased to £2.9 million in the financial year from £547,000 a year before, the accounts showed.