Q3 2022 Nomura Holdings Inc Earnings Call
Good day, everyone and welcome to today's Nomura Holdings third quarter operating results for <unk>.
Year, ending March 2022 coastlines call.
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With that we would like to begin the conference.
Mr Clooney Kitamura Chief Financial Officer. Please go ahead.
Good evening. This is tackling each Tamara CFO of Nomura Holdings I will now give you an overview of our financial results for the third quarter of the fiscal year ending March 2022, using the document titled consolidated results of operations, which is on our webpage. Please turn to page two.
Net revenue.
First let's look at the nine months period to the end of December net revenue declined 17% year on year to one Chilean and $23 1 billion yen and income before income taxes declined 55% to $277 1 billion yen.
The chart on the bottom right. So it was a breakdown by business segment. Three segment total income before income taxes was $171 8 billion yen down 51% year on year.
The decline was mainly due to a slowdown in brokerage commissions from sales of stocks and investment trusts in retail and the normalization from a strong market rally last year, particularly in fixed income in macro products, such as rates and FX in wholesale.
We also saw an impact from an additional loss booked in the first quarter related to transactions with our U S clients in March last year.
Segment other reported income before income taxes of 900 million yen with a lower contribution from one off items compared to the same period last year. As a result net income for the nine months was 112 billion yen a decline of 64% year on year EPS was <unk> 35, 33 yen and ROE was five.
4%.
Although performance slowed compared to the market rally last year. This year's three segment results were stronger than the same period in FY 2018 to 19, and FY 2019 to 20.
We are making steady progress in our medium to long term strategy and we are seeing our earnings become more consistent and diversified allow me to touch on two key highlights.
Okay.
First our focus on the broader asset management business.
In retail we are shifting to asset consulting centered on our goal based approach to manage each individual clients assets to meet their future goals.
This has led to accelerated growth since April last year, and net inflows into investment trusts and discretionary investments.
Leading to higher recurring revenue.
Investment management has also reported continued inflows and assets under management have reached a record high resulting in higher asset management fees.
Investment gain loss also increased significantly due to the listing of an invested company in this fiscal year.
Second our wholesale business has seen growth in capital light businesses, such as advisory and or as a nation.
Investment banking is delivering good performance and global M&A business, primarily in the Americas and revenues have increased and the ECM business.
Please turn to page three for an overview of third quarter results.
As shown on the top right firm wide income before income taxes was $80 1 billion yen and net income was $60 3 billion yen a marked improvement from the second quarter.
All business segments reported stronger revenues and pre tax income.
Three segments total income before income taxes was $79 2 billion up 39% quarter on quarter.
Although the graph on the bottom right. So software pre tax income compared to the strong market last year.
Third quarter results. This year were actually stronger than the three years before last year in other words before the pandemic.
As you can see on the bottom of this page annualized ROE was eight 7%.
<unk> was $19 seven yen and our set one ratio was 18%.
Please turn to page six for a breakdown of results by business.
First retail.
Net revenue increased 3% quarter on quarter to $87 4 billion yen and income before income taxes grew 6% to 18 billion yen.
As I mentioned earlier, the pace of net inflows into discretionary investments and investment Trust has picked up since April last year and recurring revenue increase compared to last quarter total sales increased 9% quarter on quarter with growth coming from investment trusts and bonds.
The box on the top right shows net outflows of cash and securities of $613 5 billion yen due to large stock withdrawals by our corporate clients.
For reference we have included net inflows of cash and securities for individual clients.
Which stood at $475 4 billion yen underscoring continued strong inflows.
Page seven gives an update of the kpis.
The top right shows net inflows into investment trusts of $114 4 billion yen and net inflows into discretionary investments of $129 4 billion yen, both higher compared to the last quarter. This growth has continued contributed to recurring revenue assets of $20 three trillion yen and recurring revenue of $28 one.
Billion yen, both of which are at record highs.
Recurring revenue accounts for 32% of retail revenues and the recurring revenue cost coverage ratio is 41% both up 10 percentage points from the third quarter of last year contributing.
Contributing to a more stable revenue mix.
The number of active clients shown on the bottom right was higher than last year at 895000 accounts account openings grew in each segment and our efforts to expand our client franchise, such as taking a strategic approach to dormant accounts at our contact centers are working well.
Please turn to page eight for investment management.
Net revenue increased 17% to $40 1 billion yen and income before income taxes grew 35% to $20 4 billion yen.
Business revenue increased 8% to $31 5 billion yen.
Continued inflows into the investment trust and investment advisory businesses lifted assets under management to a record high of $68 five trillion yen, resulting in higher asset management fees investment gain was $8 6 billion, an increase of 70% from last quarter.
American century investments related gain increased to $6 6 billion yen, while Nomura capital partners also recognized unrealized gains on investments.
Please turn to page nine.
As shown by the flow of funds on the left the investment Trust business reported inflows of 250 billion yen. The breakdown of this is shown on the bottom left the dark red portion shows core investment trusts, which booked inflows from the bank channel and into funds for defined contribution pension plans.
The section on the top right shows the trend in the bank channel four well square, which was set up in 2016 to provide <unk> services to regional financial institutions.
This has grown to include 14 partners, allowing us to provide fund wrap services to a broad range of individual investors.
Assets under management at the end of December totaled $142 5 billion representing growth of two five times over the past year.
Assets under management in alternatives, one of the investment management's initiatives in the private space have grown to 769 billion yen.
In terms of asset classes. This is mostly in private equity infrastructure and real estate and the investment reason is mainly North America.
Now please turn to page 10 for wholesale.
Net revenue increased 17% quarter on quarter to $202 7 billion yen the revenue environment improved in the latter half of the quarter for a couple of markets with fixed income and equities Byrd Firstly quick question revenue gains.
Banking saw continued strong performance in the global energy business centered on the Americas and <unk>.
This quarterly revenue.
And at March 2017, when comparisons became possible.
Fixed income credit was strong, particularly in Asia.
Okay.
For express emerging and securitized products also reported higher revenues equities had a strong quarter a degree of it is mainly in the Americas and cash remained sonic graph at the bottom left shows revenue by region, but the three international regions picking stronger revenues quarter on quarter in the Americas revenues increased.
<unk>, 4% as equity derivatives, and M&A advisory more than offset a slowdown in the rate.
Yes.
<unk> reported revenue growth in fixed income driven by credit and Forex emerging investment banking back stronger ECM revenue.
EMEA saw improved performance in fixed income driven by rate.
As shown on the top left non interest expenses were $161 9 billion, an increase of 10% due to higher revenues. However, the cost income ratio was 80% at risk stringently control costs as a result wholesale income before income taxes increased.
64% to 48 billion yen now on to page 11 for an overview of results by business line.
Global markets net revenue was $163 8 billion up 19% quarter on quarter.
First income net revenue grew 24% to 88 billion yen.
Heat map on the right shares fixed income in the Americas is pointing diagonally down due to challenged results in rates, but in other regions. The arrow is pointing up.
Rates revenues increased.
Okay, Great revenues grew strongly.
And Forex imaging posted a rebound.
<unk> had a solid quarter in credit.
<unk> and Forex image, Inc.
Revenues increased.
Equities net revenue increased 14% to $75 8 billion yen as shown on the right Americas made a significant contribution to revenue growth. Thanks to a strong quarter in both cash and derivatives.
Jay the arrow is pointing down significantly slowed or Japan reported lower revenues in cash equities. Please turn to page 12 for investment banking net revenue was $38 9 billion up 10% quarter on quarter and then the revenues easily exceeded 10 billion yen for adaptive.
Straight quarter, notably in the Americas, we have one sustainability related mandates lie at Nomura Greentech and supported multiple transactions across a broad range of sectors, resulting in record M&A revenues.
By region, Japan.
Road.
The strong previous quarter, but as you can see underwrite we supported a number of global transactions internationally. The Americas had a strong quarter with revenues, increasing 80% quarter on quarter revenue also grew from last quarter driven by <unk>.
Please turn to page 15 for an overview of our non interest expenses.
<unk> expenses declined 10% over the last quarter to 279 billion yen. The decline is mainly due to a decline in other expense.
As shown at the bottom last quarter, we booked a provision of 39 billion yen related to transactions and before the global financial crisis and the impact of this treatment was not present this quarter compensation and benefits increased 8% to 139 billion due to higher bonus provisions in line with pay for it.
Now on to page 14 for an update of our financial position as you can see on the bottom left tier one ratio was 25% <unk> ratio was 18% as of the end of December but was up compared to the end of December .
<unk> tier one capital the numerator in the calculation increased by 65 billion.
These risk weighted assets or the denominator grew only by 80 billion yen as a decline in market risk, partially offset a rise in credit risk.
That concludes the overview of our third quarter financial results.
To conclude this was the first time in four quarters, where we didn't have any one off kind of events.
And we were able to show the results of our efforts to achieve sustainable growth in each of our businesses. In addition to the broader asset management business and capital light origination business. As I mentioned, we also saw continued revenue growth in solutions and structured businesses and wholesale that are less impacted by law.
I'll get volatility.
These three businesses accounted for 47% of tree segment net revenue in the third quarter underscoring steady progress in our efforts to strategically grow our stable earnings base.
In January we have seen a drop off in investor sentiment as the stock market dropped significantly resulting in a slow start for retail, particularly in investment Trust sales that said, we are seeing some movement as investors look to buy under that.
It flows into investment trusts and discretionary investments continued through January and in these uncertain times, we are committed to following up with our clients to provide consulting over the medium to long term.
In wholesale we are seeing a pickup in rates, which slowed in the third quarter and equity derivatives remained solid continuing the earnings momentum of the previous quarter.
This year, we can expect to see trading demand driven by macro events in the U S. Such as interest rate hikes monitoring and the midterm elections in arch and for investment banking. We also expect a sustainability related demand to continue over the medium to long term.
We expect the market environment to remain volatile and we will further enhance our risk management well Amy for sustainable growth.
Thank you.
Okay.
That concludes my presentation on the third quarter results.
You are now in the Q&A session, Chris Zero, one to join the queue to ask a question.
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After the announcement start your question with your name and company.
If you have a question please press <unk> one.
The first question is from Mitsubishi <unk> Morgan Stanley Securities.
Mr. Zhao. Please go ahead.
Thank you two questions. Please first.
The.
This distribution dividend.
Yeah.
Until now you had the first half 30% in the second half 30%.
But with.
All sorts of things going on taking place since last year.
You have changed the way you decide based on various factors.
For the second half.
Will things go back to normal is that the way to think about this.
Is my first point.
And.
In the latter half of your presentation, you talked about January and.
Hey, guys it's recovering.
Could you.
And are you seeing an improvement in your business, but some cash equities.
Especially in the U S.
The market was very slow so Michael three weeks so.
I don't know if you did well in the equities, but.
Around the end of November .
And if you look at October to December compared to the average trend during the quarter. How was January what kind of started to make for the first year for equity in Fig. Thank you.
Yeah.
Thank you just a minute please.
This is <unk>. Your first question is about dividends right.
<unk> is about equities and how.
The start of the year was well for dividends.
We as we have stated in the dividend policy, we have the 30% dividend payout ratio per half year, no change to our dividend policy and that sounds however, as you pointed out it doesn't hasan.
Due to various factors and events.
We have took that into taking that into consideration and.
Yeah.
We have been deciding the dividend payments based on those considerations for the past few times, but.
Yeah.
Yes.
The policy of paying out 30% dividend payout based on behalf year.
Numbers is remains unchanged.
And.
Your second question.
About equities business.
And with <unk>.
Stable share price.
What do you mean by your equities business being strong.
We did well in equities that's the.
Honest situation and.
Who knows where the things are going to go from now but.
At the start of the year in January we made a good start and.
So in the nine months of the fiscal year.
And we have made a good it was a.
A good nine months and also we made a good start to the calendar year. So this is Susan Hogan FIC and equities both.
Compared to the pace in the December quarter things are not things have slowed down and things are trending in line with the December quarter is that the way to think about it.
At the moment.
This is <unk>, yes.
Yeah.
Equities isn't exceptionally good or fixed income isn't.
Isn't outstanding so both are reasonably good we made a good start to the year in both businesses and as such.
<unk>.
It's not that easy.
Terms of the start of the year I believe we made a good start to the calendar year.
Okay understood. Thank you.
Thank you very much.
Another sign of Daiwa Securities. Please go ahead.
Okay.
With another of Daiwa Securities I have two questions first of all the strength.
Wholesale.
Just in comparison to the third quarter of the previous year and it has been an increase of 15 billion yen cheaper yen might have been a factor, but what are the reasons behind.
Second question.
Capital policy.
Buyback 50 billion yen fit in October 39, 6 billion yen, what he is stuck but you have some lift.
It was the reason why you deferred or have you decided not to do additional buyback.
Thank you very much.
The first question was on possible cost increase in wholesale first of all keep her Yang yes that has been a slight.
<unk> impact and you are right as you mentioned, but there is another factor.
This is Greg.
The personnel cost.
Brown.
We are recruiting in good areas.
And bankers.
Our U S peers, we're talking about the same thing but.
Wage increase among the banking industry has elevated the base salary slightly and investment in new areas.
Of course.
We will monitor the cost basis, but we need to continue investments as well.
No.
Sophistication and risk management, we're injecting efforts in such area.
No.
We're not.
Talking about shrinking business by over prioritizing risk management.
But in order to develop business we need.
More precise risk management.
And.
Yeah.
Some of the causes.
Part of that cost is booked in wholesale but as wholesale as a whole a cost income ratio 80%.
That commitment has already been announced by taking various niches. We will continue to control cost, while continuing on investment and live up to our commitments.
Next second question.
Well.
Fortunately or unfortunately.
We have about 10 billion.
And the.
80 million shares were bought back.
10 billion.
Shorter than the upper limit.
Okay.
No.
Share buyback.
It's on the menu.
It's constantly an option of course regulatory environment revenue environment and stock prices various factors will continue to be monitored and with agility.
I'll respond to the circumstances, we solicit your kind understanding. Thank you very much secondly to confirm you have 10 billion left in share buyback.
Okay.
And then from the Nextgen are you going to add on in terms of share buyback. There is not a straight line link, but theres 10 billion left of course.
We will look at the total payout ratio and shareholder benefit ratio and think about various options in terms of use of capital. Thank you very much I understand your point very well. Thank you.
The next question is from.
<unk> Nikko Securities Mr. Murky Mark San Please go ahead.
Yeah.
Thank you. This is murky from SNB clinical two questions. Please first is about page 10.
Wholesale business, which did well in the quarter.
In Q3 revenue 200 billion yen pre.
Pretax income for 2 billion yen.
So the FY 'twenty two target.
If we annualize it you have already achieved that target number.
Going forward.
As the monetary policy.
Shifts going forward and what are your thoughts about the FY 'twenty two the next fiscal year, what is the revenue outlook and what is the upside potential and downside risks are.
What's on your mind for the wholesale business.
That's my first question.
And second question is.
This may be a bit technical but on page 14.
Both of the presentation.
The transparency of the price is extremely low and that level III assets and.
There was a big decline in level three assets during the Covid pandemic, but there has been a big jump or big increase again and according to the data September data.
See MBS in equity derivatives and loans seem to be increasing.
Okay.
All right.
Uh huh.
Which is this correlated to which business is this linked to and.
How do you how are you controlling this risk related to the level three assets. Please.
Yes. This is <unk>. Thank you.
In terms of the future upside and the risks and how we think about that.
And this results announcement for wholesale the results were not bad.
Actually we think they were quite good.
But one of our big businesses is the rates business was things were tough not just for Nomura, but for many of our peers as well.
Are saying similar making similar comments.
And in the January to March quarter.
The number was below the pre pandemic levels.
<unk>.
We did expect the situation to normalize but.
Even though things were quite tough in the rice business and as you pointed out rates interest rates are expected to go up and long term interest rates people are trying to find where the long term interest rates are going to end up and market participants have all sorts of thoughts about where things are going to go and some people will be rebalancing there.
Folio some people will be hedging.
So.
In the rates business, we think that business environment.
We'll not go will not deteriorate further from here, we think I don't think we have to be too worried about that.
Yeah.
And in terms of the <unk>.
FX the currency, we are quite strong, especially in Asia and similar situations here and each country has the exit strategies and.
There will be a little difference between countries. So there should be a difference in the interest rates.
And.
As a result, the FX activity will pick up and increase we expect and.
For credit.
All right.
Things were very strong, especially in Asia is a credit.
Very high level.
We achieved and the question is how far this is going to go.
And.
Even if things normalize to a certain extent I think we can we should assume a slight certain normalization.
So that's.
That's how we think about the wholesale business some positive and some concerns as well.
Okay.
But we will make sure to continue to risk control and in equities.
We do not use our balance sheet and we're not doing a lot of things using our balance sheet we're more.
Our business is more related to customer activity quite activity and our franchise is number one or number two in that sense.
Okay.
And the client activity when it picks up.
And when there's a change in their risk appetite.
We received sizable orders and we can monetize the business.
And Thats, what we are expecting but.
Again.
If there is a very sharp fluctuations in the prices.
That is a risk so we need to make sure to manage the risks in that kind of situation.
That's the answer to your first question.
And regarding your second question.
About the level three assets.
And why is that increasing.
Yes.
In the securitized products business.
We are very strong in the U S and.
The securitized products business.
We're doing quite a lot of business there and.
I wouldn't say one off I don't know if one off is the right way to say it but at the end of December there was a spot.
There was a kind of a spot case warehousing loan and the securitization business and that's why the level three assets went up.
At the time and.
After that.
We expect it to decline from our balance sheet and.
The securitization business and the warehousing loan.
There is growth potential in this business.
And as I've been saying today, the potential rise in the interest rates and in comparison with the agency business. There are some investors which are pursuing yield.
Okay.
So we.
We will we are focusing on this business but.
That doesn't mean that we will materially increase this business expand this business.
And we will make effective use of our limited resources and apply stringent controls to this business. So we will focus on the resource.
You can see.
And cater.
Cater to the demands of investors so in that sense.
At the end of December .
December 31st or December 30th.
There was a spot increase in the number and the number was cutoff on that at the time, but that was related to the warehousing loan and that is the reason for the increase.
Understood. Thank you regarding the first point just to add to that.
Last year. This is mark by the way last year.
There was a lot of market.
You said that there could be market fluctuations. So you have you are controlling your position very carefully because what you mentioned, but right now based on the current situation.
The <unk> index is rising and.
At the moment your balance sheets.
Are you letting the business side freely using your balance sheet or are you continuing to tighten the grip on the balance sheet. Thank you there's a camera.
Okay.
In Q2.
Right.
And in the beginning of Q3 around October there was a very irregular movement of interest rates and at that time.
We controlled our exposure and risk and compared to that time the yield curve.
Is becoming more natural so.
Okay.
We are allowing more freedom at the moment, but the market itself is in a difficult state at the moment.
So we are not actively taking risk exposure at the moment, but rates. If you look at the performance in January .
The performance was not bad.
Understood. Thank you very much.
If you have a question please press <unk>.
One.
If we have a question please press <unk>.
One.
It sounds like you said of <unk> Securities. Please go ahead.
Sure.
Okay.
Bank of America.
<unk> speaking.
I have two questions first of all.
In disclosure of assets under management.
You call Doug <unk>.
Net inflows of cash and securities.
What.
Is the actual amount.
That's my first question and next fiscal year.
Forecast.
In your plan.
In March 2023 kg Tpa segment profit.
320 billion Melissa target.
The environment is improving.
Under the current environment will be an upside or downside to the 320 billion target those are my two questions.
Thank you.
The first question.
Was.
Yeah.
The.
Individuals of the net inflows of cash and securities.
So far we haven't done any disclosure of that number and sorry about that.
We solicit your understanding.
Question was on next year's target of 320 billion.
And will there be a potential for upside or downside.
Frankly, it's difficult to do any forecasting at this juncture.
Retail.
<unk> is currently in the midst of business transition and they are we are very serious about it.
Such perspective.
That's still work under progress.
So frankly speaking, we don't want to a reasonably fit the accelerated and frankly speaking we are seeking a steadfast.
Risks in expanding our franchise and naturally that should lead to increased revenues as an outcome.
On wholesale.
Thank you Laura on the markets.
Environment.
At cruising speed or under normalized circumstances quite.
Quite sound performance will probably be reported and looking at the.
The results, we just announced we think we have been able to give you some signs.
The rates business.
Which is one of our two core businesses.
Is.
Going to recover and if it does.
There could be some upside to our original expectations, but there is a likelihood.
The question was which way it will it go upside or downside.
I can't give you a clear answer but.
Or do you like this it towards that target of 320 billion. Thank you very much. Thank you very much.
I have one follow up question if I may.
TB.
Back.
How do you evaluate.
To the extent possible can you comment on the possible impact.
Three years ago.
Yeah.
Alright.
Sorry, I made a comment previously.
And I made a comment in December and our.
Evaluation remains unchanged, but March 'twenty through 'twenty three.
Whether it would be introduced.
Oh, okay.
We are with great interest monitoring the situation very closely in Europe .
They've already.
Began to assume delay already in advance.
So far the U S has not announced any commentary.
So whether the timing of 2023 is realistic or not it may not be so realistic.
And then what about Japan.
Yeah.
With alignment of positions in various countries.
And how will the <unk> TB and reduction will be realized.
This is a point of great interest for us and we are watching the situation very closely.
I haven't really directly answers. Your question. This was only a supplementary comment on that subject.
Far as we can say at the moment. Thank you very much.
The next question please.
From Citigroup Securities <unk> San Please go ahead.
Thank you this is <unk> from Citi.
In retail.
And the midterm plan Roe.
First retail.
In the introduction of the level fee.
Could you share with us what you realized in the trial period.
And from April we will make a full scale implementation or introduction, although they will be what kind of revenue impact are you expecting positive negative gross net.
If there are any qualitative.
Items that you can share with us some kind of guidance that will be helpful second row.
Okay.
This overlaps with it sounds like your son's question earlier.
8% target.
Probably going to achieve is my impression of what you said and what I would like to ask is 10% are you going to bring forward the 10% to timing.
And if that is possible.
What is the requirement to do that for example, if you like.
You kind of peers.
Digital initiatives accelerating digital strategies or other areas like wealth management.
Or.
Putting in additional costs to gain market share.
It seems to be quite ambitious and active but what will nomura due to.
Bring forward the timing of the ROE target if possible.
<unk>.
Also the evaluations, which isn't exactly high at the moment, how are you planning to change that please.
Thank you that was camera first regarding retail.
Okay.
The level fee, which we are planning to introduce.
We have already begun trials in some of the branches with some of the customers.
And we don't receive the fees per transaction so.
It's important to build a partnership with the customer and we need to be facing the same direction.
And discuss about discuss business. So thats, a very big difference from our the way we use of their business.
Improving the satisfaction of our customers.
And in order to do that Nomura has to offer better services to customers.
So we believe that in that sense. The level fee is a very good positive initiative and the feedback so far has been positive.
And.
The level fee itself.
So the higher the client revenue client assets from clients Alibaba, the lower the fee level. So.
Okay.
We will finalize how much exactly we're going to charge in terms of level fee, but at the moment.
It's quite hard to say how much revenue contribution there will be from the level fee, it's quite hard to calculate at this moment, but.
Okay.
In terms of what we want to do.
We want to improve the quality of our services to customers and especially improve satisfaction.
That's the objective of this initiative.
And.
If the customers are satisfied then.
It will.
We will have more client assets or two with Nomura managers and in the past what often happens is.
Customers introducing their friends to.
Two Nomura.
And we've seen a strong pickup in those referrals as well.
So.
Level three is part of a bigger initiative of expanding the client franchise.
Not just the number of accounts, but also the.
The balance per customer is another important metric.
And we want to work on various initiatives, including the level fee.
Your second question.
So, 8% ROE, maybe but what about 10% and what are the measures to achieve that.
In order to achieve that 10%.
Digital strategies and.
We're making investments.
The wealth management business.
Yes, Nomura is also working on those initiatives and.
We are always discussing at the management level about these initiatives.
And for example, digital as you pointed out and you were saying if.
If we make an investment a digital does is that going to immediately leads to a high Roe.
Not necessarily.
However.
And digital Kenny.
Various things but.
When we say digital this is something inevitable and we have to work on digital initiatives. So we will make sure to keep focusing on digital and.
Investments.
We are completely open to making investments if there's a good opportunity.
<unk> M&A.
And.
Meanwhile, we will also be pursuing organic growth in areas, where that's possible for example, Ivy investment banking in the U S.
Very active recently.
And.
This is an area, where we would also like to focus on.
And of course, we will control the costs and make sure that we generate the revenue that matches the cost that we spent.
And recently.
Okay.
The growth of ROE in the U S.
It has mainly been driven by the investment banking business.
Yeah.
Maybe not all sectors, but we will selectively cover certain sectors in the investment banking business.
And wealth management.
In Japan.
And I think you have a good understanding of what we are doing in international wealth management.
We have changed the team last year and AUM is gradually increasing.
We still have a lot of work to do.
In this area.
Yeah.
Maybe a year from now.
And hopefully we will surprise you with the progress that we've made in wealth management, we are doing all sorts of things.
Initiatives and.
It's going to take a little bit more time until that starts showing up in the results.
But hopefully you will watch what we're doing over the most out of the mid to long term and there arent any special initiatives to.
Boost the business, but we are also always thinking of all sorts of options. So.
Hopefully we will generate the eight and then the 10% Roe.
Yeah.
Sorry for the rather philosophical answer but that's.
That's the that's what we think at the moment.
Okay I'm looking forward to that thank you very much.
If we have a question please press.
One.
Dan.
There is no more question, we would like to finish question and answer session.
Now we would like to make the closing address by Nomura Holdings.
Thank you everyone. This is kitamura. Thank you very much for participating today.
Q3 results.
We did not have one off items and.
I think we are starting to see the progress and the results of the efforts that we have been making over the past year at least partially.
And.
We are focusing on stabilizing our revenues.
And making effective use of our resources.
We are very strongly focused on those initiatives and assemblies and stabilizing our revenues.
Please go ahead once we.
Make more progress in that initiative I think our valuation will improve.
Yeah.
And we are hoping for that to happen and our CEO . Mr. Okada is been saying public to privates.
And we are working on all sorts of strategies management is very focused on that and as.
This is related to the answer to <unk> question earlier, but we are working on all sorts of things at the moment and.
We are we are confident that we are making progress forward.
Over.
While the management has to focus on is.
The speed of this progress how to accelerate the speed.
Okay.
And hopefully we'll be able to show you. The results of these efforts as early as possible and we would like to surprise you of the changes that Nomura has undergone.
And the management and the employees, we are all focused on that.
Okay.
So we look forward to your continued support and coverage.
Thank you very much for joining today.
Thank you for taking your time.
That concludes today's conference call.
You may now disconnect your lines.
Okay.
Okay.
[music].
Okay.
[music].
Yes.