Q4 2024 Nomura Holdings Inc Earnings Call

April 26, 2024

To page two first our full year results as you can see on the bottom left given that revenue increased 17% year on year. One trillion 562 billion yen pretax income grew 83% to 273.9 billion yen EPS was 52.6 non yen and are able to ear was 5.1.

And therefore, please turn to page two first our full year results as you can see on the bottom left given that revenue increased 17% year on year. One trillion 562 billion yen pretax income grew 83% to 273.9 billion EPS was 52.6 non yen in early April.

Per cent the first half of it kicked off but the failure of regional banks in the U S and issues around the U S debt ceiling. This coupled with monetary tightening of central banks around the world and spiking oil prices led to continued uncertainty in fixed income markets equities markets were generally solid but concerns around the higher rates for longer resulted in.

It was 5.1% the first half of it kicked off with the failure of regional banks in the U S and issues around the U S debt ceiling. This coupled with monetary tightening of central banks around the world and spiking oil prices led to continued uncertainty in fixed income markets.

Equities markets were generally solid but concerns around the higher rates for longer resulted in a correction centered on high tech stocks towards the end of the half year period.

Correction centered on high tech stocks towards the end of the half year period.

As we moved into the second half of their inflation in the U S East and we started to see an exit from the sharp rate hikes in the past two years integrating 24, the fed hinted at three rate cuts leading to robust trading among market participants in spite of some market jitters.

As we moved into the second half of V or inflation in the U S East and we started to see an exit from the sharp rate hikes in the past two years integrating 24 at a fed hinted at three rate cuts leading to robust trading among market participants.

Since mid March the business environment has generally been favorable.

Flight of some market jitters since mid March the business environment has generally been favorable.

Interesting the Japanese market surged over the past year due to deflation ending the speculation of a shift on boj policy and structural reforms to boost profitability of Japanese companies.

Interesting the Japanese market surged over the past year due to deflation ending speculation of a shift on boj policy and structural reforms to boost profitability of Japanese companies.

Nicky hit a record high and introduction of the new Isa scheme in 2024 looks to have finally prompted a full fledged shift from savings to asset building.

The Nikkei hit a record high and introduction of the new Isa scheme in 2024 looks to have finally prompted a full fledged shift from savings to asset building.

Against this backdrop, a three segment income before income taxes increased 123% to $236 8 billion yen underpinned by gains across all business divisions.

Retail income before income taxes grew 3.7 times to $122 7 billion yen, representing the highest level in eight years since fiscal year 15, 16 sales were higher across all products and services. Thanks to Paul Thanks, partly to the market rally, but also to the <unk>.

Partly to the market rally, but also to the major realignment of our people in spring last year delivering results quicker than expected or shift to an asset management recurring business model is progressing smoothly stable recurring revenue has roughly doubled in the past eight years, while divisional cost have declined by nearly <unk>.

As your realignment of our people in spring last year delivering results quicker than expected or shift to an asset management recurring business model is progressing smoothly stable recurring revenue has roughly doubled in the past eight years, while divisional cost have declined by nearly 10% resulting in an.

10%, resulting in an increase in our recurring revenue cost coverage ratio from 28% to 55%.

Fees in our recurring revenue cost coverage ratio from 28% to 55%.

Okay.

Investment management has seen steady growth in its asset management business.

Okay.

Investment management and has seen steady growth in its asset management business and you net inflows were $3 eight trillion yen take.

Net inflows were $3 eight trillion yen.

Taking assets under management to 89 trillion yen.

<unk> assets under management to 89 trillion yen both numbers are trending above our fiscal year 'twenty four 'twenty five kpis target.

Both numbers are trending above our fiscal year 'twenty four 'twenty five it can't be a target.

Business revenue was which represents stable revenues increased 14% year on year.

This revenue was which represents stable revenues increased 14% year on year.

Investment gains doubled over the past year as a result pretax income increased 38% year on year to 62 billion yen wholesale income before income taxes increased 84% to $53 9 billion, our international business faced challenges during the first half of the ear, but momentum pick.

Investment gains doubled over the past years as a result pretax income increased 38% year on year to 62 billion yen wholesale income before income taxes increased 84% to $53 9 billion, our international business faced challenges during the first half of the year, but momentum.

Up in the second half global markets net revenue increased 8% year on year on improved performance in spread products, such as securitized products and credit as well as an equity products.

First up in the second half global markets net revenue increased 8% year on year on improved performance in spread products, such as securitized products and credit as well as in equity products.

Investment banking was up against a difficult environment as global fee pools remain depressed having dropped by over 40% since the peak in fiscal 'twenty, one and 'twenty two that said, we leveraged our robust client base in Japan, and our global franchise to support many transactions throughout the year as a result investment bank.

Banking was up against a difficult environment as global fee pools remain depressed having dropped by over 40% since the peak in fiscal 'twenty, one and 'twenty two that said, we leveraged our robust client base in Japan at our global franchise to support many transactions throughout the year as a result investment banking net.

<unk> net revenue was at the highest level since the year ended much.

Revenue was at the highest level since the year ended March 17, when comparisons are possible.

17, when comparisons are possible.

Today, we also announced a dividend of 15 <unk> per share for shareholders on record as of end of March This translates to an annual dividend of 23 fruit yeah for sure.

Next please turn to page three for an overview of our fourth quarter results. All the percentage figures I mentioned from now on refer to quarter on quarter comparisons.

Group revenue increased 11% to $445 1 billion yen and pretax income grew 17% to $92 1 billion net income was up 12% to $56 8 billion EPS was 18.02 yen and our O E C.

Group net revenue increased 11% to $445 1 billion yen and pretax income grew 17% to $92 1 billion net income was up 12% to $56 8 billion EPS was 18.02 yen and our O N E.

Six 8% as you can see on the bottom right. Three segment income before income taxes was $777 1 billion yen $77 1 billion yen as retail revenue growth momentum continued since bottoming out in the April to June quarter of 'twenty, two and the asset management business and investment management performed.

Six 8% as you can see on the bottom right. Three segment income before income taxes was 777 1 billion yen $77 1 billion yen as retail revenue growth momentum continued since bottoming out in the April to June quarter of 'twenty, two and the asset management business and investment management.

Well, please turn to page six for an overview of results in each business starting with retail.

Net revenue in retail grew 6% to $108 8 billion and income before income taxes increased 21% to 38 8 billion stable recurring revenue reached a record high of 41.8 billion, partly driven by advisory fees booked every six months a recurring revs.

Net revenue in retail grew 6% to $108 8 billion and income before income taxes increased 21% to $38 8 billion stable recurring revenue reached a record high of $41 8 billion, partly driven by advisory fees booked every six months a recurring Rev.

Cost coverage ratios for the quarter was 60% flow revenue reached 67 billion, we saw strong growth in sales of equities and investment Trust.

Cost recovery ratio for the quarter was 60% flow revenue reached 67 billion, we saw strong growth in sales of equities and investment Trust.

Thanks to the successful realignment of our sales partners combined with Japan stock market rally and uptick in investor sentiment on the back of introduction of the New Nissan scheme. Please turn to page seven for an outline of sales by product total sales jumped 33% to $6 two trillion yen.

Sales of equities search.

43% to 4.5, Julien and sales of secondary stocks grew strongly.

Investment Trust sales were up 26% to.

760 billion yen as shown on the bottom right, we booked inflows into publicly offered funds that invest in private equity and global equity funds. Please turn to page eight for an update on progress against Kpis targets.

Several hundred 60 billion yen as shown on the bottom right. We booked inflows into publicly offered funds that invest in private equity and global equity funds. Please turn to page eight for an update on progress against Kpis targets.

Net inflows of recurring revenue assets were 100 entry point 5 billion as shown on the top left although the corporate client fiction reported a slowdown in inflows as clients sought to lock in gains net inflows at clipping. This were $235 3 billion demonstrating.

<unk> strong momentum.

<unk> revenue assets reached a record high of 23 trillion yen as you can see here on the top right. This led to an uplift in stable recurring revenues flow business find numbers shown on the bottom left stood at approximately 1.69 billion, which is above our kpis target for the year ending March 25. In addition to the positive impact.

Strong momentum recurring revenue assets reached a record high of 23 trillion yen as you can see here on the top right. This led to an uplift in stable recurring revenues Probusiness find numbers shown on the bottom left stood at approximately 1.69 billion, which is above our kpis target for the year ending March 25.

I've realigning our sales partners the market rally and introduction of newness of scheme led to more investment opportunities and uptick in trading bank clients. Our workplace business is trending well, we now provide around 3.63 million services.

In addition to the positive impact of realigning our sales partners the market rally and introduction of newness of scheme led to more investment opportunities and uptick in trading bank clients. Our workplace business is trending well, we now provide around 3.63 million services next please turn to page nine for <unk>.

Next please turn to page nine for investment management.

Net revenue increased 12% to $43 6 billion and income before income taxes grew 14% to $17 8 billion as you can see on the bottom left stable business revenue was 38 billion the highest quarterly revenues since the division was established in April 2000.

Investment management.

<unk> one.

The asset management business had a strong quarter and Nomura that broker and Brown continued.

The revenue growth with higher sales of aircraft leases investment gains.

It was $5 6 billion roughly unchanged from last quarter. Please turn to page 10 for an update on the asset management business, which generates the division's business revenue.

$5 6 billion roughly unchanged from last quarter. Please turn to page 10 for an update on the asset management business, which generates the division's business revenue.

The top left shows also it's on their mother's day window at the end of March.

The top left shows those what's on their mind is even though the end of March of 89 trillion, marking the fifth straight quarter of record highs and training <unk> gave you a target of 75 point each treaty on young women.

I'll jump in.

Jim marking the fifth straight quarter of record highs.

Training rule Abobo emerged through the twin devoted KBR Targa, Duke 75, each treaty and you will.

Although the list you see net inflows for the kudos loan bore into Ontario, which the investments rose business booked 780 billion of inflows in the investment Advisory and then who knows where the business is booked 350 billion inflows.

Although the list you see net inflows for the good of lumber into Ontario, which reimbursements rose business booked 700 D D being blues and investment Advisory I mean, who knows where the business is booked 350 billion inflows.

So as the business 300 billion inflows into Japan, Emboldens Soak Etf's.

So those three.

300 billion of inflows into Japan Emboldens sake.

Those are 206, Abd union into IMO and other money market funds.

And the inflows of 206, CBD union into IMO ribs, and other money market funds.

Underscoring a gradual buildup of individuals <unk>, excluding Youtube. So numerous we booked 230 billion inflows mostly into public over it publicly over the phone.

Underscoring a gradual buildup of individuals are those loans, excluding Egypt's anymore. If we booked 230 billion inflows mostly into public over it publicly over the phone.

As in brother degree due to the global Eagle phones.

Zoom brother degree due to the global Eagle phones.

The investment advisory and into those new businesses reported though the fluids from Jabil nuclear Devens, Amit the market rally.

The investment advisory and into those new businesses reported though the fluids films Yobbo lucrative owns the market rally into.

Internationally, we continue to book inflows into U S. All usable in the phones in India equity funds.

Internationally, we continue to book inflows into U S high yield bond the phones in India equity funds.

Oh total deposits under management grew steadily to 1.9 trillion driven by private equity funds I just mentioned.

Oh total deposits under management grew steadily to 1.9 trillion driven by private equity funds.

Please turn to page 11 for an update on our wholesale business wholesale net revenue grew 17% to 254.2 BD on him.

Mentioned.

Please turn to page 11 for an update on our wholesale business wholesale net revenue grew 17% to 254.2 BD on him the fruits.

First of all the kudos start it off with an optimistic mood among market participants over expectations, the right goods, but towards the end of the quarter inflation. Reemerge, then that there were growing concerns over geopolitical risks Amit. This we were able to sell Bulldogs Williams, both global markets and investment banking book.

First of all the good it started off with an optimistic mood among market participants over expectations, the right goods, but towards the end of the quarter infusion reemerged in that there were growing concerns over geopolitical risks Amit. This we were able to sell Bulldog Williams, both global markets and investment banking book soon.

Revenues as you can see on the bottom right all reasons opposed to tell you the revenues.

<unk> expenses rose, 20% to $233 6 billion yen. In addition to how you are variable cost in line with the performance a number of special factors in the year and the folks who has also had an impact specifically, we booked a loss provision of around 14 billion arising from transactional areas will be there.

Expenses rose, 20% to $233 6 billion yen. In addition to <unk> close in line with the performance a number of special factors in the year and the folks who has also had an impact specifically, we booked a loss provision of around 14 billion arising from transactional videos with Oba.

Broker counterparties caused for equity compensation linked to our share price increase due to a rising share price and the food and the doctors close for decommissioning IGN and other intangible fixed assets increased these factors resulted in a total cost increase of just over 20 billion as a result wholesale income before income.

Broker count about your cost for equity compensation linked to our share price increase due to a rise in our share price and the food and the doctors close for the commissioning and the other intangible fixed assets increased these factors resulted in a total cost increase of just over 20 billion yen as a result, the wholesale income before income.

Taxes declined 10% to $20 6 billion yen or fourth quarter cost to income ratio was 92%, but excluding those special voters in the year and the bulk of those I just mentioned it was between 80 and 85% which shows that we have been able to keep costs under control. Please turn to page two open one up little niche business.

These declined 10% to $20 6 billion yen or.

Fourth quarter cost income ratio was 92%, but excluding the special voters in the year and the factors I just mentioned it was between 80 and 85% which shows that we have been able to keep costs under control. Please turn to page two open wound up little niche business like Google like its revenue net revenue increased 19% due to her.

Globally, while it gets the revenue net revenue increased 19% to $204 4 billion in fixed income net revenue was up 18% to $122 6 billion driven by the uptick in multiple activity in the email and the Americas byproduct material products delivered stronger revenue.

With $4 4 billion in fixed income net revenue was up 18% to $122 6 billion Julien by your uptick in market activity in the email and the Americas byproduct material products delivered stronger revenue the rates business.

The rates business.

Business revenue increased in EMEA and the Americas.

Business revenue increase in EMEA and the Americas.

The improved performance of agency mortgage and on contributions from SSA bonds in spread products securitized products revenue grew for the fifth straight quarter credit revenues slowed in July due to a drop in the foreign bond investments do do those Shelby yen depreciation and <unk> revenues.

The improved performance of agency mortgage and on contributions from SSA bonds in spread products securitized products. The revenue grew for the fifth straight quarter created revenues slowed in Japan due to a drop in the foreign bond investments do do those Shelby yen depreciation and <unk> revenues were also down due to the muted.

Revenues were also down due to the muted performance in the China market equities net revenue increased 20% to 81.9 billion equity products had a good quarter with javan revenues increasingly strongly on contributions from yourselves look shareholdings in the Euroyen CB transactions email and they use it.

Performance in the China market equities net revenue increased 20% to 81.9 billion yen equity products had a good quarter with Japan revenues, increasing strongly on contributions from the sales of shareholdings in the Euroyen CB transactions email and they use a also posted higher revenues.

Also posted higher revenues.

Please turn to page 13 for investment banking.

Net revenue grew 10% to 49 point it'd be the Union, which is the best quarterly revenue performance since they are indeed much go into 17 when comparisons are possible.

Net revenue grew 10% to 49 point it'd be the Union, which is the best quarterly revenue performance. Since the year ended March 2017, when comparisons are possible or these injury. There's no reasons booked stronger revenues, although Japan slowed from us, particularly strong prior year quarter revenues remained elevated.

There's no regions booked stronger revenues, although Japan slowed from us, particularly strong prior year quarter revenues remained elevated.

Advisory also slowed from a strong previous quarter, both as you see on the top right. We collaborated globally and we're involved in many cross border deals financing and solutions revenues were up.

Advisory also slowed for almost rone previous school do both as you see on the top right. We collaborated globally and we're involved in many cross border deals financing and solutions revenues were up.

Performance improved in the international solutions transactions and sales of shareholdings in July contributed to revenues.

Performance improved in the international solutions transactions and sales of shareholdings in July contributed to revenues. Please turn to page 14 for an overview of non interest expenses.

Turning to page 14 for an overview non interest expenses.

Group, who I've known interest expenses increased 10% to 353 billion yen.

Compensation and benefits edged up 4% to 177 point, there won't be an union or the bonus provisions were down the increase was due to the higher deferred compensation that I had mentioned earlier other expenses totaled 57.9 billion. This includes higher business related third party fees and therefore.

Compensation and benefits edged up 4% to 177 points it won't be an union Oh, the bonus provisions were down the increase was due to the higher deferred compensation that I mentioned earlier other expenses totaled 57.9 billion. This includes all your business related third party fees and the 14.

<unk> really only in loss provision you mentioned.

Billion yen loss provision you mentioned.

Please turn to page 13 for an update on the financial position the table on the bottom left shows still on capital of $3 five trillion and the risk weighted assets of 19 trading in giving a tier one capital ratio of 18, 2% and Docomo. They agree detail on the ratio of 16, 2%.

Please turn to page 15 for an update on the financial position the table on the bottom left shows steel on capital of $3 five trillion and the risk weighted assets of 19 trading in giving a tier one capital ratio of 18, 2% and Docomo. They agree detail on the ratio of 16 point stupid.

Answer to your financial position remains robust that concludes the overview of our fourth quarter results.

And also to our financial position remains robust.

Includes the overview of our fourth quarter results.

To conclude over the past year, each business was able to deliver steady results as retail playing to our strength that you know a whole bucket with structural changes as a tailwind and we leveraged revenue opportunities.

International business.

In 2020 of what we have seen the who fled shifting individuals' money from savings to us of the building of Nikkei reached a record high and you need those schemes launch than inflation appeared.

In 2020 of what we have seen the who fled shifting individuals' money from savings to us of the building Ugly gay reached a record high and a new Nissan scheme launch than inflation appeared.

Yeah.

In just three months the amount of sales silver Nissan through US is nearly the same as last food Yeah. In February February there were days when our contact centers fielded over 50000 inquires.

Yeah.

In just three months the amount of silver silver Nissan through US is nearly the same as last food Yeah. In February February there were days when our contact centers fielded over 50000 inquires.

This shows the increasing incredibly large interest there is in this thing no from April we have changed the change to the name of our retail division to wealth management to better reflect the reality of their business.

This shows the increasing incredibly large interest there is in this thing now from April we have changed the change to the name of our retail division to wealth management to better reflect the reality of their business.

Though the market is going through a correction in April it is in times of uncertainty like this the information and otherwise takes on greater body and the role we have to play it becomes more important by providing comprehensive us with management services, while operating in the markets, we have been able to maintain.

Though the market is going through a correction the name Peru. It is in times of uncertainty like this that the information and otherwise takes on greater data bodies and the role we have to play becomes more important by providing comprehensive answer the management services, while operating in the markets, we have been able to maintain.

Revenues or the liberal over the strong fourth quarter.

And you said a little over the strong fourth quarter.

In wholesale we have confirmed that our franchise can capture revenue upside as the markets recover revenues are going grow revenues are growing in securitized products equity products and the risk light businesses, such as investment banking and international wealth management. We have also made progress in diver.

In wholesale we have confirmed that our franchisees can capture revenue upside as the markets recover revenues are going grow revenues are growing in securitized products equity products and the risk like the businesses such as investment banking and international wealth management. We have also made progress in diversifying.

Finally, our revenue mix fourth quarter revenues of approximately 250 billion Union was to some extent inflated by yen depreciation, but on a dollar basis, excluding currency translation revenues haven't recovered to the level. They were at two years ago. When the Central Bank started tightening business has been strong in April.

Our revenue mix fourth quarter revenues of approximately 250 billion Union was to some extent inflated by yen depreciation, but on a dollar basis, excluding currency translation revenues haven't recovered to the level. They were up two years ago. When the Central Bank started tightening business has been strong in April.

Driven by rates created in America, that's equity products the way the revenues, maintaining a fourth quarter level and the performance momentum continuing.

Driven by rates credit and Americas equity products, the way the revenues, maintaining a fourth quarter level and the performance momentum continuing.

We continue to stringently manage of a cold space the.

We continue to stringently manage of a cold space.

The 20 billion yen cost reduction target in retail is likely to be fully completed by March 'twenty 'twenty five and in wholesale we are implementing various cost reduction programs that girls front to back and have been able to mostly offset increased costs throw him a strategic hiring.

The 20 billion yen cost reduction targets in retail is likely to be fully completed by March 'twenty 'twenty five and.

In wholesale we are implementing various cost reduction programs that goes from two buck and have been able to mostly offset increased called throw him a strategic hiring and higher fixed costs due to inflation, we will continue to tightly control costs through structural reform initiatives.

And how your fixed costs due to inflation, we will continue to tightly control costs through structural reform initiatives.

So those are for the fourth quarter and full year performance.

So those are for the fourth quarter and the full year of performance.

Yeah.

And S N D C Nikko Securities Lucky I have two questions first.

Yeah.

And S N D C Nikko Securities Lucky I have two questions first.

Europe 14 billion yen.

Europe 14 billion yeah.

Loss.

Due to counterparty failure of settlement can you elaborate on the situation how did this situation any mesh three years ago in the United States.

Loss.

Due to counterparty failure of settlement can you elaborate on the situation how did this situation in this three years ago, Indiana States.

Did you get it to a certain client loss.

It's a credit to a certain client loss.

It's booked and you improved risk management. So in the context of counterparty failure is that something that is impossible to avoid that's my first question and second question.

It's booked and you improved risk management. So in the context of counterparty failure is that something that is impossible to avoid.

That's my first question and second question.

Investment banking.

This time.

On page 13.

U K E.

Upgrade system.

U K E.

Since January leverage loan markets resumed.

That's right Justin.

Since January leverage loan markets reads out.

Leverage loan.

Arrangement transactions were booked which contributed to revenues.

Leverage loan.

Range meant transactions were booked which contributed to revenues.

Since April.

Yeah.

Since April one.

What has been the situation can we expect more of these transactions to come and continue and.

It has been the situation can we expect more of these transactions to come and continue and.

Okay.

What about the revenues from proceeds of selling your Holdings, Inc. Q3, Dan So.

Okay.

What about the revenues from proceeds of selling your Holdings, Inc. Q3, then so.

With.

Our sales to retail that contributed to group revenues, but.

With.

Our sales to retail that contributed to group revenues, but.

Are these mainly broth transactions in terms of contributions.

Yeah.

Again, we expect that proceeds from sales of your holdings will increase.

Is the expected opportunities since April.

Thank you very much to answer your first question first.

Yes.

Thank you very much to answer your first question first.

Okay.

In February of this year U K subsidiary.

Okay.

In February of this year U K subsidiary.

And you're seeing it Europe.

Encountered this transaction UK broker.

Mandated us.

Sales at <unk>, but there was failure of a settlement payment.

In our transactions with as a broker.

Our transactions with the broker.

We have settled all of the transactions with this broker.

And all of the losses had been booked in Q4 emerging from this transaction and we are currently studying how we can't recover.

The losses the credit.

Overseas.

Yeah.

Ours instead.

Overseas there are some instead.

The incidence of failure of settlement and its not so rare that this kind of saturation of terrorists ordinarily.

Between brokers with whom we do various transactions this could happen from time to time and it's not so extra ordinary.

But failure by broker.

Breaking the transaction through.

Lack of performance of payment.

He is a rare case and it's not the fact that we are responding.

Is a rare case and it's not the fact that we are responding.

To all of these.

Incidents it but as far as this broker is concerned we've.

It looks to all of the losses in the Q4.

<unk> San you said the previous case, but.

The Rockies on you said the previous case, but.

The nature of this incident is completely different.

And the broker is a broker registered to the authorities of the government and so it was a very rare case.

And the broker is a broker registered to the authorities of the government.

And so it was a very rare case.

Responding to your second question.

Leverage finance.

Yeah.

As a market finally.

Yeah.

As the market finally.

We are beginning to see signs of revival.

In March.

Many potential transactions popped up.

Financial.

Financial sponsors began to become more active.

Most of these transactions were.

Most of these transactions were for refinancing purposes.

For refinancing purposes.

Which as he kicked up that is.

Best effort based it.

Deals.

So.

Deals.

Refinancing our proportion so in terms of.

So.

Refinancing our proportion so in terms of.

The deals they were quite attractive.

So.

Is this going to become a big trend and are we seeing many similar transactions in the pipeline. We wouldn't go as far as to say there are many in the pipeline, but we hired are beginning to see signs of recovery.

So.

So we are beginning to have optimistic views and prospects.

Regarding the sales of our policy of holding so we have high expectations.

Corporate governance code.

Corporate governance codes.

Has been made robust and eat.

Has been made robust and.

Each.

Companies in Japan, corporate sector are proceeding with our selling their policy holdings as you're well aware.

Each.

Companies in Japan, corporate sector are proceeding with our selling their policy holdings as you're well aware.

Nomura has a strong franchise in Japan.

Means that there is high likelihood that we will be.

Engaging in such business opportunities so in that sense.

We have bright prospects for such business opportunities. Thank you.

Thank you very much.

Okay.

Thank you I will just go through them is to be all these securities I have two.

Yeah.

Thank you almost goes for them is to be all these securities I have two.

Two questions on.

Onto a different things.

Two questions on.

Two different things.

First question page 11.

Wholesale.

Earlier, you explained, but the 14 BDO and yen of cost, but excluding the cost 80% is cost to income ratio or 86% baseball and simple a mess. So for a couple of quarters. This course in Colorado.

Earlier, you explained, but the 14, BDO and yen of cost, but excluding the cost 80% of cost to income ratio or 86% baseball zimbra mess. So for a couple of quarters, there's a cost to income arrays.

<unk> is relatively low or favorable in the fourth quarter, but I'd like you to elaborate on the factors. That's my first question. So simply put the revenue level was high as a result cost to income ratio came at Don is it what's happened or product mix improved what were those.

<unk> is relatively low or favorable in the fourth quarter, but I'd.

I'd like you to elaborate on the factors. That's my first question. So simply put the revenue level was high as a result cost income ratio came with Don is it what's happened or product mix improved what were the factors behind it. That's my first question. Thank you.

Factors behind that that's my first question. Thank you.

Thank you very much firstly.

The 14 billion yen, which I mentioned and.

The 14 billion yen, which I mentioned.

The deferred compensation impact actually exist it.

And.

The deferred compensation impact actually.

And for the offices, who we are granting the deferred compensation.

Exist it.

And for the officers, who we are granting the deferred compensation.

And it's a deferral of compensation so under our accounting treatment the recognition of expenses differed.

Xu our familiar in the fourth quarter, our stock price increased.

You are familiar in the fourth quarter, our stock price increased.

So the you.

In order to recognize the expense so as we recognize the expense due to stock price increase the cost increased.

So the in order to recognize the expense so as we recognize the expense due to stock price increase the cost increased.

You know sizable scale.

Do do review of various systems.

Do you do review of various systems.

E systems and intangible assets were disposed off and then.

It is the stem cell intangible assets were disposed off and then.

Kind of costs are included so when those close the accumulated the combined together, it's going to be a sizable number so that compared to 86%, which you mentioned.

So the number would have been lower.

Dumbed up so the lower part of the eighties.

The cost income ratio and of course.

Of course, the revenue was good.

So low level of cost income ratio.

The.

Major factor is the revenue because the cost income ratio cannot be reduced just by cost savings. So.

Major factor is the revenue because the cost income ratio cannot be reduced just by cost saving so.

Indeed, it is up to the course of revenue increase was about to but at the same time, we are taking company wide efforts to reduce cost in wholesale is covered by the cost saving initiative and as a result of cost control excluding special factors the cost income.

Indeed, it is up to the course of revenue increase was about to but at the same time, we are taking a company wide efforts to reduce cost in the wholesale is covered by the cost saving initiative.

As a result of cost control, excluding special factors the cost income ratio came down to a bit above 80%. Thank you for the first question. My second question is about the page 27 retail division state stuff.

The ratio came down to a bit above 80%.

For the first question. My second question is about the page 27 retail Division state though.

Yeah.

So according to your explanation the interest in investment has heightened so could you elaborate on the remark. So firstly for new accounts for January through March what was the situation of the opening of new accounts 90.

Okay.

So according to your explanation the interesting investment has heightened so could you elaborate on the remark. So firstly for new accounts for January through much of what was the situation of the opening of new accounts 90.

And thousands of accounts so there's a level of new accounts. So what is the view of the management.

So.

In the third quarter was 87000, so the number of new accounts is up so it's a 14% increase so given the market environment the growth could have been bigger.

So in.

In the third quarter was 87000, so the number of new accounts is up so it's a 14% increase so given the market environment the growth could have been bigger in one way, but the.

But.

So 19 9000.

Is it because it is high.

From the management perspective.

Thank you very much.

Oh for them and you.

New clients are coming to contacts Nomura and we are thankful, but.

Oh for them and you.

New clients are coming to contacts Nomura and we are thankful, but.

We are not placing focus on the obsolete numbers, even though.

We are not placing focus on the absolute numbers, even though new accounts are important but.

New accounts are important but.

We would like clients with both Enzo to conduct transactions using us. So the opening of new accounts are the retail division to be renamed Rosemont, Ism and throw them in April.

We would like clients with both Enzo to conduct transactions using us so the opening of new accounts to retail division to be renamed wealth management throw in April.

So to a certain extent.

A certain size of customers or who we focus on in this situation 19 9000.

It's a number so for me this is a satisfactory number.

Is the number so for me this is a satisfactory number.

Understood.

And I'd like you to expand on the Nissan schema. So in January through March quarter, the NESA account opening.

Understood.

And I'd like you to expand the Nissan scheme. So in January through March quarter, the NESA account opening.

Based upon that simple deduction.

As a result of a simple deduction.

So from one point, so we need to minus 1.75, then it's a 22000 is it the increase of new Nissan scheme based accounts increase yeah. The buying of starts in January so some.

So from one side, we need to minus 1.75, and then it's a.

22000 is the increase of new Nissan scheme based accounts increase yeah. The buying of starts in January so some.

People, how the NESA ski account elsewhere. So the simple deduction in the calculation does wont come into that new accounts opened under this scheme.

People have needs. So ski account elsewhere. So the simple deduction in the calculation does won't come to that new accounts opened under this scheme.

But what my question is so the simple deduction calculation. So 22000 for the March quarter and the end of a much end of September the end of December. So it's a 59000, so new Nissan started in January but in December the columns.

Number of I'll call them seem to have increased so the growth of our columned cones and the start of a new knee. So is the correlation between the two is I want you to understand that relationship. Thank you.

Number of I'll call them seems to have increased so the growth of our columns columns and the start of a new knee. So is the correlation between the two is I wanted to understand that relationship. Thank you.

So you are asking about the delta so from September.

So you are asking about the delta so from September to December and December too much.

September to December and December too much.

So the September did you say about the same as the larger <unk>.

The September did you say about the same as the larger you mentioned about the of course, there are cases, where our clients opened up accounts. So for them to start buying in January they are requested to open accounts before January so the delta is the Vega for September.

Mentioned, but of course, there are cases, where clients opened up accounts. So for them to start buying in January they are requested to open accounts to before January so the Delta is the Vega for September to December. Okay. So then so from December.

December.

Okay. So then so from December to March.

Too much.

Close date.

At one point close to one point as a medium.

<unk> yeah.

At one point close to one point as a medium.

So under new needs are.

So you saw the buying activities that you described yes.

So you so the buying activities that you described yes. So the new accounts opened this fiscal year. So it is not that the they finished their activities in the fourth quarter. They will come to you and they're buying activities about do you. What do you mentioned is the main portion okay understood. Thank you very much.

The new accounts opened this fiscal year. So it is not that are are they finished their activities in the fourth quarter. They will come to you and they're buying activity is about to you. What you mentioned is the main portion okay understood. Thank you very much.

Yeah.

Diversification. So I don't know that I have two questions first of all there's 12 fixed income revenues.

Yeah.

No I would say Katie so I don't know that I have two questions first of all page 12 fixed income revenues.

Mortgage related.

<unk> had led to this growth.

But U S rates is not coming down do you think that income level can be sustained and Q4 fixed income others. There was a spike what is the backdrop what are the reasons second question.

6.9 billion yen of Noncontrolling equity losses, what's the backdrop.

And do you think that this could become a factor of volatility going forward.

Yeah.

Thank you very much.

Yeah.

Thank you very much.

Okay.

Let me take up your first question first securitized products.

Okay.

Let me take up your first question first securitized products.

Clearly the market is coming back.

For example, if you look at issuance.

Yeah.

In comparison to the previous quarter.

Yeah.

In comparison to the previous quarter.

There has been growth.

The market environment is improving.

So the market environment is improving.

But.

Is this true recovery I think we need to monitor the situation.

But.

Is this true recovery I think we need to monitor the situation.

More closely for example.

The market price recovery is one of the factors behind the <unk>.

Improvement of performance, so we need to watch closely but.

We will enter into a rate declining luge.

Eventually so.

We don't think that the environment is unfavorable.

Eventually so.

We don't think that the environment is unfavorable.

In terms of inventory we are constantly checking.

And towards the end of March there has been a slight increase but.

Partly because of market activity, we are seeing rapid reduction of inventory. So if our clients become active I think we will be able to capture those opportunities.

Probably the reason why others booked quite a large number.

Global markets.

They are co working with IV in client financing business.

They are called working with IV in client financing business.

And the revenues from that business if it included and in G N.

And the revenues from that business, if it included and N G N.

International wealth management, but for Asia, we are seeing steady expansion of this business.

So from these businesses.

Yeah.

We are seeing increasing others and this is a technical point, but.

Yeah.

We are seeing increasing others and this is a technical point, but.

Treasury function under my position CFO.

Yeah.

Is constantly charging U F as internal interest rate and it used to be relatively high.

Yeah.

It's constantly changing U S S internal interest rate and it used to be relatively high.

And towards the end of the quarter Treasury P and part of the P. M was reinvest that is included and.

And towards the end of the quarter Treasury P. M part of the P. N was reinvest that is included and.

Yeah.

I Hope I answered your first question and your.

Yeah.

I Hope I answered your first question and your second question.

Question.

Non controlled equity.

Okay.

Noncontrolling equity.

We as a minority shareholder why was this big.

As a minority shareholder why was this big.

This is a technical.

Issue I'm, not so confident that I'll be able to persuade you now is investing in a fund.

Issue I'm, not so confident that I'd be able to persuade you know is investing in our fund.

Variable V I E.

Yeah.

And it's a consolidated fund subject to consolidation.

Okay.

And it's a consolidated fund subject to consolidation.

V. I E is subject to consolidation so 100% of income is fixed and then the non controlled equity is deducted.

Me I E is subject to consolidation so 100% of income is fixed and then the non controlled equity is deducted.

And in the subject quarter.

The profit of this fund was relatively high and therefore.

The gap was bigger than a normal quarter.

Okay.

It's a complicated and some of the jargon might've been difficult to understand that I Hope you got my point on your second point.

Okay.

It's a complicated and some of the jargon might've been difficult to understand that I Hope you got my point on your second point Mark to market its mark to market and the <unk>.

Mark to market its mark to market.

The fluctuation was big is that what you're saying whoa.

Fluctuation was big is that what you're saying whoa.

There was contribution from your mainstream business and that has led to this big number.

Well to answer your question the fund value the fund performance improved.

So.

As an outcome.

So.

As an outcome.

Noncontrolling equity portion also rose.

The Noncontrolling equity portion also rose.

I understand very well thank you very much for the response.

Okay.

This is <unk> from Citi.

May I ask a question. Please go ahead.

Regarding wholesale.

And the EMEA business I have question each for my question regarding wholesale is about the medium term target. These.

From 160 280.

From 160 to 180.

So fourth quarter result seems to go above that level.

So fourth quarter results, even to go above that level.

My interest is is it a one off in nature.

Or.

Is it sustainable but for you to be able to aim higher what needs to happen. So is the profit sustainable and what is their view on the upside. That's my first question. My second question is about the EMEA, excluding the loan provision.

Or is it sustainable but for you to be able to aim higher what needs to happen. So is the profit sustainable and what is their view on the upside. That's my first question. My second question is about the EMEA, excluding the loan provision.

Jason seems challenging or you are going to.

It's Jason seems challenging or you are going to.

Retain global franchise about the once again could you comment on the positioning of the EMEA business. Thank you. Thank you very much for the questions.

In the fourth quarter US you mentioned new awesome pulp.

In the fourth quarter US you mentioned new awesome.

Top line topline was robust.

Top line top line was robust.

The biggest factor was.

Well for a quite a loyal macro related the businesses, especially rates that were challenged.

Well for quite a while macro related businesses, especially rates that were challenged.

He came back and the business came back as a result revenue recovered in addition.

They came back in the business came back as a result revenue recovered.

The last couple of years to be her place focus on equity products and securities securitized products and credit they of constantly grown so in that sense.

<unk>.

The last couple of years to be her place focus on the equity products and securities securitized products and credit they of constantly grown so in that sense.

This momentum.

He is expected to continue.

This momentum.

He is expected to continue.

Also I W M International wealth business.

Yes, it's growing steadily so revenue contribution is expected there.

He is.

It's growing steadily so revenue contribution is expected there.

The last couple of couple of or last a few years over the last two years or so.

The last couple of a couple of or last a few years over the last two years or so.

So, including the first half of this year the situation the husband challenging us even though.

So including in the first half of this year the situation the husband challenging us even though.

And at this time.

The fourth quarter the numbers in U S dollar basis.

And at this time.

In the fourth quarter the numbers in U S dollar basis.

No.

It's slightly above the fourth quarter number two years ago. So finally, the through the after going through the tough situation, we have come back to where we stand no, but as we look at our peers situation.

So.

It's slightly above the fourth quarter number two years ago.

Finally, the through the after going through that tough a situation, we have come back to where we stand snow, but as we look at our peers situation.

The wholesale revenue level.

Our level it doesn't seem in fewer you compare to our peers.

Our level it doesn't seem in theory are compared to our peers.

So the capability of generating revenue.

Is held by US however, the since breakeven point is relatively high so when revenue comes down then we lose bottom line profit.

Is held.

However, the since breakeven point is relatively high so when revenue comes down then we lose bottom line profit.

That's the situation so cost control is continued.

And as mentioned product line is being enriched and we are focusing on the recovery of rates of the business and do through such a measure we can expect to continue with your sustainability of the performance.

And as mentioned product line is being reached and we are focusing on the recovery of the rates of the business and do through such a measure we can expect continue with your sustainability of the performance and.

Regarding EMEA.

Regarding India.

As you mentioned.

$18 8 billion.

Oh negative number so minus 14 billion.

The number is negative.

So or so.

So it's a hub of a global business so at certain size.

So or so it's a hub of a global business so certain size.

Well put the cranes will be retained in EMEA.

Oh put screens will be retained in EMEA.

And.

All alone anemia.

And.

All alone anemia.

We have limited revenue drivers. So we were overly dependent on rates business and for awhile. The rates of business was not so spake stuck here that was the reason for the stagnation in the rates bond team no hub, the new leader who has got one.

We have limited revenue drivers. So we were overly dependent on rates business and for a while the rates business was not so spake stuck here that was the reason for the stagnation in the rates bond team know HUS, the new leader, who has got one.

Lord and the team is being rebuilt so we are starting to see the benefit and the effect in the fourth quarter.

<unk> Board and the team is being rebuilt so we are starting to see the benefit and the effect in the fourth quarter.

So we have expectations for it.

That's part of our business and we have it dependent on rates of business, but we need to take countermeasures to that situation. So we would like to increase revenue drivers, especially in Americas.

That's part of the business and we have it dependent on the rates of business, but we need to take countermeasures to that situation. So we would like to increase revenue drivers, especially in the Americas.

Equity business is successful.

Yeah.

So it is not that we are taking excessive risk about such businesses are what we are considering for expansion and also securitized products.

Sure.

So it is not that we are taking excessive risk about such businesses are what we are considering for expansion and also securitized products.

Globally consistent the mother.

Consider.

Globally consistent the mother.

Good conduct business.

And throw them.

Americas securitized products business in Europe.

And throw them.

Americas securitized products business in Europe.

Could be monitored and overseen and we are taking measures for that so top line revenue drivers are going to be increased moving moving forward. So that the numbers will look better than the most recent numbers that's all thanks.

Could be monitor than overseen and we are taking measures for that so top line revenue drivers are going to be increased moving moving forward. So that the numbers will look better than the most recent numbers that's all thanks.

Thank you very much regarding wholesale risk us it.

Control.

To elaborate on that so seven 9% is the profitability.

Control.

Could you elaborate on that so seven 9% is the broke stability.

So value at risk.

Is not used much than you.

Do you have sufficient capital more capital could be allocated to go after more revenue.

Do you have sufficient capital more capital could be.

Good to go after more revenue.

From.

My view is on how mature, but from the viewpoint of accumulating revenue.

From.

My view is on how mature but from.

From the viewpoint of accumulating revenue.

What is your view on the usage of the risks that could you give some more colors. So thank you very much for your comment.

So return or profitability on resource needs to be monitored all the time and in the material. What we've shown is return on risk weighted asset other than that there are various resources such as leverage.

So return or profitability on resource needs to be monitored all the time and in the material. What we've shown is return on risk weighted asset other than that there are various resources.

Exposure and unsecured funding.

Just leverage exposure and unsecured funding.

And also so there are such resources, though.

And also so there are such resources.

Not necessarily regulated so we are looking at the various resources as we think about resource allocation. So if in the short term.

Though not necessarily regulated so we are looking at the various resources.

You think about resource allocation so if in the short term.

If we find the business opportunities then.

If we find new business opportunities then.

Temporarily some of funding will be allocated so most important thing is to manage resources with discipline.

Temporarily some of funding will be allocated.

The most important thing is to manage resources with discipline.

Thank you very much for your explanation.

Okay.

If possible.

Okay.

I have one additional question I wish to ask.

If possible I.

Have one additional question I wish to ask.

Today be okay.

Today B O J.

Goodness.

Today's conference was done and he said that the rates will be hiked up to neutral level money market fund.

Governor.

Press conference was done and he said that the rates will be hiked up to neutral that's all money market fund.

Or at what rate will there be revival and then if it's revived you can expect significant amounts of funds but.

At what rate will there be revival and then if its revised you can expect.

Never count amounts of funds, but.

As a trigger of cross selling in wealth management, what are the hopes.

S. A trigger of cross selling in wealth management, what are the hopes.

Yeah.

Sure.

Yeah.

Thank you for the question.

Okay.

There's no interest on money fund at the moment.

Thank you for the question.

There's no interest on money fund at the moment.

On this point.

Unless rates.

On this point.

Unless rates.

Come higher it would be difficult, but then at what level.

Frankly speaking, it's very difficult to respond I don't know.

Is it money fund.

Or.

Is it money fund.

Or.

Normally a trust bank, which is a separate subsidiary.

We are studying the possibility of accepting deposits.

Right.

So in terms of idle funds.

Right.

So in terms of idle funds.

Well they go to and then F or.

Well they go to and then ask or.

Yeah.

Deposits at four tentative parking a vital funds if.

Yeah.

Deposits at four tentative parking a vital funds if rates come higher.

Rates come higher.

We are hopeful that idle funds began to move around.

And then within Nomura Group for example.

Okay.

They could be.

Used to purchase variable products or sell.

They could be.

Used to purchase variable products or sell.

Those products tend to purchase something else and there could be more flexibility and more action. So there are such hubs I'm not sure whether I've been able to respond to your question, but that's where we are.

Those products tend to purchase something else and there could be more flexibility and more action. So there are such ups I'm not sure whether I've been able to respond to your question, but that's where we are.

Thank you very much for your response.

Okay.

Yeah.

Okay.

Thank you very much for your participation today.

Regarding the performance.

So regarding the performance.

What we have done over the last several years, our airports are seeming to gradually delivered the results, especially in retail division revenue grew greatly and the cost control has been effective so compared to last year cost is.

<unk> increased only by 5% and the bottom line profit increased by three seven times. So we see the result.

Increased only by 5% and the bottom line profit increased by three seven times. So we see the result.

For wholesale which has been challenged in Mercury all business, but we see a recovery in the product lines that hub underpinned the wholesale hub become solid so the revenue is becoming a more diversified so moving forward of course market environments, and especially geopolitical risks.

As for wholesale which has been challenged in Mercury all business, but we see a recovery in the product lines that hub underpinned the wholesale hub become solid so the revenue is becoming a more diversified so moving forward of course market environments, and especially geopolitical risks.

To be monitored closely but if it if anything our view is optimistic.

Have to be monitored closely but if it if anything our view is optimistic.

Yeah, No we're a group in December.

Yeah Nomura group in December.

25th next year, we are celebrating our centennial anniversary.

And as we do so the phone during the principal and corporate philosophy will be cherished so that the and are we in this.

Australia, we created our purpose.

We aspire to create a better word by harnessing the power of financial market. So that is the newly created purpose silver Nomura, so compared to our peers, our purpose is longer but the.

Oh, we aspire to create a better word by harnessing the power of financial market. So that is the newly created purpose silver number out so compared to our peers. Our purpose is longer but the it's a specific.

It's a specific.

Purpose and to achieve this we will focus on all areas of competitiveness pursue.

Purpose and to achieve this we will focus on all areas of competitiveness, whose sue.

Uh huh.

Yes.

Uh huh.

Well this.

Okay.

Tim.

Well this.

We've been talking about Australia by business about the rehab.

Tim.

We've been talking about a stretch them by business about the rehab.

Collaboration across the business divisions will be the key for us so we'd like to pursue that at the body, but through collaboration and then we'd like to proactively invest in growth areas and control cost stringently.

The collaboration across the business divisions will be the key for us so we'd like to pursue the body, but through collaboration than we'd like to proactively invest in growth areas and control cost stringently.

As a corporate value and achieve sustainable growth.

To raise our corporate value and achieve sustainable growth.

Thank you very much for your continued support thank you.

Thank you very much for your continued support thank you very much once again for your participation.

<unk> you very much once again for your participation.

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