Q2 2025 Nomura Holdings Inc Earnings Call
Total sales declined 9 billion yen too.
Five nine trillion yen, but this is because last quarter included a tender offer of over one trillion yen excluding that sales of stock increased from last quarter. We executed multiple primary transactions and took orders from clients taking advantage of the market volatility from August to buy on the dip.
Resulting in sales of over four trillion yen sales of investment trusts and discretionary investments slowed from the strong prior quarter, but remained robust and third to the fourth quarter of the last fiscal year sales of insurance products increased on demand for retirement funds and estate planning well sales of products and services easy to transact based.
Proposals and advice from sales partners remains solid page eight shows KP is mostly trending above the fiscal year's targets at top left shows net inflows of recurring revenue assets of 438 3 billion, representing a further gain from that robust prior quarter. As a result, net inflows of recurring revenue assets, where the six.
[noise] months period were $826 2 billion outstripping, our annual target of 800 billion yen as of the end of September our recurring revenue assets were $23 four trillion a decline from last quarter due to market factors, but quarterly average remained roughly unchanged recurring revenue was at a record high due to changes to our proud.
And the fact that some half yearly fear fees received in the second quarter. The number of workplace services provided as shown in the bottom right was 3.79 million, which is also ahead of our target of $3 six 6 million.
Please turn to page nine for investment management revenue was up 18%.
Six four which won't be there in the wild with income before income taxes grew 38% to 31 million being union as you can see in the bottom left civil business revenue was 39 4 billion yen, marking a record high for quarterly revenues since the division was established deals at the management of the business remain strong.
Also its under management at the end of September dipped from last quarter. The quarterly average was roughly unchanged.
We reported ongoing inflows into products with investment management expertise is required such as octuple under management in the province, it's giving us a better product mix and higher investment management fees investment gain those was up 95% at $16 7 billion being union driven by us.
Significant increase in American century investments related to valuation gain loss. Please turn to page 10 for an update of the us at the money has been in the business, which generates business. The revenue as you see on the top left us at under management at the end of September stood at 388 going to a training again done from last quarter due to market.
There is about the quarterly average was roughly the same but both of them live shows another quarter of net inflows of one point to answer you in 650 billion yen of rich which was.
Okay.
Into investment Trust business in the 470 billion union into the mismatch of the Buzz are endangered us business.
The investment Trust business reported over 440 billion of outflows hinting of the permanent shift they'll funds through new investments, excluding Egypt, and Mrf's investment Trust booked inflows of 570 billion into private assets melons phones, and global equities are girls and diverse distribution channels, including.
Nomura Securities Regional financial institutions, and other securities brokers Etfs, the booked inflows of 522 billion again, mostly into Japan the equities.
In the investment advisory and the international businesses. The international business made a strong contribution driven by inflows into U S high yield bond funds next please turn to page 11 for an overview of wholesale performance net revenue increased 8% to 263.4.
Believing in US shown on the bottom left global markets revenues grew 6% while investment banking revenues were up 14% at the same time wholesale expenses declined 3% Oh those bonus provisions increased in line with top line performance severance related expenses include it.
In last quarter, we're no longer represent and this combined with yen appreciation to lower costs. As a result, the income before income taxes significantly increased by 114% to $45 3 billion yen and though of course, the cost to income ratio improved to 83%.
Please turn to page 12 for an update on each business to growing global markets net revenue increased 6% to 221.1 billion yen. This quarter saw a spike in volatility on the bulk of uncertainty over the U S economy, a selloff in tech stocks and the geopolitical risks of in this environment, we were able.
<unk> to provide liquidity to the market and monetize through both client flows fixed income net revenue increased 2% to 127.
Engage with you in Mercury products had a good quarter, while oh with rates looking stronger revenues film on the uptick in client activity in Japan in Americas, and efficacy and performance improving in a J in spread products created slowed in Japan, I'm thrilled about Joe.
Probably a quarter and securitized products revenues declined primarily in the Americas equities net revenue was 93 point to be the union up 14% over the first quarter financing and derivatives held strong quarter in Japan, and Asia, while equity products revenues grew substantially please turn.
To page 13 for investment banking.
Net revenue increased 14% to 42.3 billion yen in Japan, we supported several corporate actions aimed at boosting corporate value, resulting in record high revenues since the fiscal year ended March 2017, when comparisons are possible byproduct otherwise.
<unk> revenues grew internationally driven by EMEA us involvement in high profile transactions such as the acquisition those britvic by calls books U K subsidiary all of those Japan slowed from the strong performance last quarter, we supported multiple tender offers and mud instrument buyouts revenue things final.
Thing and solutions were up markedly ECM revenues doubled on the bulk of offerings to sell cross shareholdings, while D. C. M executed many large insurances, including salted Bancorp's bond type class yet so you can see houses subordinated bonds and.
For all near Holdings Green Bond type class, Yes, first in Japan.
On to page 14 for non interest expenses group wide expenses were roughly flat at 353 BDO in compensation and benefits were unchanged at 184.7 video again ODO bonus compensations increased in line with the performance of mentioned severance related expenses declined from law school their commissions.
And the floor brokerage increased due to higher trading volumes, but the other expenses declined 6% on lower professional fees. Please turn to page 15 for an update on our financial position table on the bottom left shows our tier one capital of $3 43 million a decrease of approximately 150 billion.
From the end of June in addition risk weight. It does that's declined by 900 billion to $19 two trillion yen, resulting in a tier one ratio capital ratio of 17, 6% and the common equity tier one ratio of 15 point, 15.7% both roughly the same as the us.
That concludes the overview of our second quarter results to sum up despite the market volatility. This quarter, we achieved an annualized ROE of 11, 6%. The second quarter of results to consistently achieve 20, <unk> call and stated target of a ROE of eight to 10.
<unk> or more.
Our ROE of 11, 6% is the highest since the quarter ended December 2020, other time wholesale accounted for 60% of three segment income before income taxes, but no earnings are well balanced across three divisions, giving us a higher quality a row.
Recurring revenue in wealth management in the business the revenue in investment management, both of which are sources of stable revenues have increased by nearly 80% since the 2020 at December end quarter lifting our repeat business baseline ROE we have also diversified our revenue.
Mixing wholesale by growing our equity products and securitized products businesses into second and third pillars to complement our micro products business.
Oh, very both wealth management and wholesale slowed down from the strong second quarter of client increasingly south in the sidelines given various political events. That's it wealth management revenues are still trending at the high level contributing to batesville in a row, while wholesale revenue.
<unk> diversification continues.
As demonstrated in the second quarter, we will continue to control costs and take on upper or create risk in line with market conditions as we aim to boost our bottom line.
Thank you very much for your continuous support.
Speaker Change: We have a question and answer session now.
Speaker Change: If you have a question.
Speaker Change: Sharp seven.
Speaker Change: If we want to sell a question.
Speaker Change: Press shop seven.
Speaker Change: The first question.
Speaker Change: If by F&B C Meeker Securities Mr. Chan. Please go ahead.
Speaker Change: Smbs and you guys are <unk> this is <unk>.
Speaker Change: <unk> speaking I have two questions first of all patients.
Speaker Change: At this time as you had extreme.
Speaker Change: Fine.
Speaker Change: <unk>.
Speaker Change: <unk> and our performance was strong in Asia and that applies not just to wholesale but to wealth management as well.
Speaker Change: Okay.
Speaker Change: Are these performance is sustainable.
Speaker Change: ECM.
Speaker Change: When I.
Speaker Change: I read the press releases.
Speaker Change: Volatility impacted in.
Speaker Change: After August so theyre in after.
Speaker Change: It hasn't been as strong.
Speaker Change: The strength in July, but regarding Asia stimulus.
Speaker Change: Package in China made a contribution.
Speaker Change: Yes.
Speaker Change: In comparison theories and Cortez.
Speaker Change: Profits in Asia seem to be stronger.
Speaker Change: Is your forecast for the months and years ahead Thats. My first question second question is on capital policy.
Speaker Change: Regarding share buyback, what kind of debate had taken place to reach the conclusion not to buy back shares.
Speaker Change: And.
Speaker Change: As you write in your report set one ratio.
Speaker Change: Target maximum.
Speaker Change: Regarding the study of setting the Max and then where are you in terms of your discussions. Thank you.
Speaker Change: Thank you very much.
Speaker Change: Your first question.
Speaker Change: Of <unk> in Japan, and whether such performance is sustainable.
Speaker Change: There are many in the pipeline, including large deals and.
Speaker Change: Yeah, ROE Yang C b with rate increase and these are some of the areas. We are injecting efforts in Kent.
Speaker Change: In this area competition is becoming intense but in the selection of the managers.
Speaker Change: Okay.
Speaker Change: We're getting.
Speaker Change: Getting our pitch so that were not impacted by competition and in terms of pipeline. There are several potential deals and we wish to realize this potential deals in the pipeline.
Another.
Speaker Change: Asia is selling a policy holdings and we think that.
Speaker Change: And the level of sales will remain high.
Speaker Change: Yeah well.
Speaker Change: Continue to support the capital policies of our.
Speaker Change: Clients so.
Speaker Change: That's why responses regarding sustainability of ECM deals now onto Asia.
Speaker Change: If we look at the past track record FX III emerging and credit.
Speaker Change: They have been the core of our business.
Speaker Change: More recently in addition.
Speaker Change: We have begun to see strength in equity.
Speaker Change: Equity deliberative business and another area is <unk> W and international wealth management.
Speaker Change: Okay.
Speaker Change: No.
Speaker Change: With the addition of these businesses, we're seeing higher diversification of revenue sources.
Speaker Change: The quarter that has just ended.
Speaker Change: FX emerging made a comeback.
Speaker Change: An area, we had been struggling and the equity team.
Speaker Change: Okay.
Speaker Change: Is becoming stronger.
Speaker Change: As you have rightly pointed out.
Speaker Change: Chinese equity.
Speaker Change: Kong liquidity.
Speaker Change: Boosted but.
Speaker Change: Was there that tailwind I wouldn't deny it but I think.
Speaker Change: More had to do with diversification of revenue sources and widening of coverage in terms of products and those are <unk>.
Speaker Change: <unk> delivered results.
Speaker Change: And on your second question.
Speaker Change: Okay.
Speaker Change: Buyback.
Speaker Change: Yeah.
Speaker Change: Ball three will kick in in March next year, if our JV impact we will have to be evaluated and the impact has become more visible on the other hand.
Speaker Change: Yes.
Speaker Change: Things on our mind.
Speaker Change: So.
Speaker Change: We're not denying share buyback as an option, but as they think about many elements. This time around we decided not to but on the other hand.
50% or higher total payout ratio. This is lindsey external commitment that we had made so as we.
Speaker Change: Proceed into the second half, we will continue to consider such option.
Speaker Change: And.
Speaker Change: Fifth one ratio maximum.
Ceiling.
Speaker Change: Basel III.
Speaker Change: In fact.
Speaker Change: Is being objectively.
Speaker Change: Frankly speaking Basel 2.5 versus Basel III.
Speaker Change: The behavior.
Speaker Change: Is different.
Speaker Change: In the case of Basel III.
Speaker Change: We would like to monitor more closely.
Speaker Change: Not to say that we won't be on the sidelines for you or two but for the time being we would like to observe the situation do you think about what range would be appropriate for our firm.
Speaker Change: Uh huh.
Speaker Change: Next fiscal year.
Speaker Change: And early timing in next fiscal year, we are hopeful that we will be able to set the ceiling.
Speaker Change: In terms of the buffer not the buffer that.
Speaker Change: Tier one.
Speaker Change: Or is it one range.
Speaker Change: We will be studying that and to what extent do we do or not do buyback.
Speaker Change: Those are some of the items that we will continue to consider thank you.
Speaker Change: Thank you very much.
Speaker Change: I'm not sure whether I.
Speaker Change: Supposed to ask but you said you're thinking about many other things as well.
Speaker Change: Is that.
Speaker Change: Something to do with the regulatory authorities.
Speaker Change: Are you thinking.
Speaker Change: Thinking about investments.
Speaker Change: Wholesale performance.
Speaker Change: Frequently improving.
Speaker Change: So in the short run we may allocate capital to such area.
Speaker Change: And we've been talking about inorganic opportunities and we are continuing to pursue such opportunity.
Speaker Change: Very much your responses were very clear.
Speaker Change: The next question comes from Watson are assigned from Daiwa Securities.
Speaker Change: Okay.
Speaker Change: Hello, I am Watanabe from Daiwa I have two questions first regarding fixed income business open G M.
Speaker Change: Major U S players too.
Watanabe: 2% decline year on year basis about in your case plus 32% in your case compared to U S. Peers. What was the factors of outperformance of peak revenue for you and the second question is related to wealth management.
Watanabe: July September quarter ROE is the monthly revenue trend could you comment on that and also <unk>.
Watanabe: And the lower same bulk doped up plunge of market in August and how did you address that situation in August. Thank you. Thank.
Speaker Change: Thank you very much first regarding fixed income on a year on year.
Speaker Change: Basis, we agree greatly but that's from the start of a low level last year. So that's just a little cannot really be something that we can compare this year against.
Speaker Change: But as mentioned.
Speaker Change: Revenue diversification.
Speaker Change: <unk> progressed and that is a major point.
Speaker Change: Securitized products and others of increase.
Speaker Change: And it's a little and in the second quarter in the area of ethics in the emerging volatility T went up but we could monetize in those businesses.
Speaker Change: Also in macro.
Speaker Change: Rates products, which struggled last year.
Speaker Change: Cause gradually seen recovery of clients' activities and especially in Americas client flow increased and reached it and that's something that we could monetize other result on a year on year basis.
Speaker Change: We could achieve a significant improvement.
Speaker Change: And we outperformed our peers and we could gain market share.
Regarding your second question.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Your second question monthly revenues.
Speaker Change: And July was the highest in August and September.
Speaker Change: Due to market factors monthly revenues were lower.
Speaker Change: And in July.
Speaker Change: Equity, primarily we had multiple equity primary deals so that contributed to our strong performance and in August that's even though in the early part of August there was a plunge in the market.
Speaker Change: And.
And when the Stokes prices are low so I mean, besides the boards, but there was a slowness in the market.
Speaker Change: So we spent some time.
Speaker Change: Explaining situations to clients. So the situation the oldest it's something that we could accept and then in September.
Speaker Change: The market was not very clear in terms of the direction and the Tokyo stock exchange and are the exchanges the transactional volumes shrunk in markets. So July was our strongest followed by weaker months. Thank you.
Speaker Change: Thank you very much for your answer regarding the October onward for wealth management abilities to deliver low booked over compared to the July August and September. So we have just come out from October.
I said, there is slowness, but it's not really slow overall transaction volume has come down.
Speaker Change: So.
Speaker Change: Oh, we are affected by that but us operating environment environment environment environment is still weak. So the decline is not so big Thank you very much for your answer.
Speaker Change: Now we move to next question.
Speaker Change: Can you confirm your affiliation please state your company name and your name after hearing a muted announcement.
No our music.
Speaker Change: <unk> speaking.
Speaker Change: I have two questions first.
Speaker Change: You've been talking about equity and fixed income and high performance in Q2.
Speaker Change: But since the beginning of October.
Speaker Change: Assuming there has been changed where have those changes occurred.
Speaker Change: Second question.
Speaker Change: ACI.
Speaker Change: Volatility has this time around delivered positive results, but year hedging.
Speaker Change: And yet.
Speaker Change: You are able to lock in such significant gains.
Speaker Change: How is this being achieved.
Speaker Change: Is it discount rate of interest rates.
Speaker Change: And to what extent did that contribute.
Speaker Change: But it's.
Speaker Change: It's really difficult to understand why this large gain then in Q3.
Speaker Change: Relating to the other way around.
Speaker Change: Will there be a reversal.
Speaker Change: So interest rate.
Speaker Change: And.
Speaker Change: Okay.
Speaker Change: The EU and increasing so.
Speaker Change: The positive.
Speaker Change: Factor of rate came back Inc.
Speaker Change: Come back in Q3.
Speaker Change: No.
Speaker Change: Is it is $17 billion 18 billion.
Speaker Change: You give us a breakdown of factors and how they contributed.
Speaker Change: Thank you Sam.
Sam: So let me try to respond.
Sam: The slight slowness in October was caused mainly by macro factors equity and securitized products.
Sam: Equity and secured a project.
Sam: Doing well.
But since the beginning of October.
Sam: Forex imaging and rates.
Sam: There has been slight sluggishness in these areas.
Sam: Great.
Sam: <unk> is uncertain and dollar rate has become rather uncertain.
Sam: These are factors.
Sam: That we can't avoid.
Sam: And on this point next week.
Sam: There will be the presidential election in the United States.
Sam: And.
Sam: It is considered that it will take four or five days, Florida accounts to be announced.
Sam: And that's taken into consideration by the investors and they are on the sidelines and taking wait and see edited buds dry powder is filing up so in the second half.
Speaker Change: Do you think that there will be a comeback of activities in the market.
Speaker Change: On ACI.
Speaker Change: Okay.
Speaker Change: I am not able to comment on the details but.
Speaker Change: Doctor for a mark up one <unk>.
Speaker Change: AUM has increased.
Speaker Change: Partly driven by market factors, but.
Speaker Change: The business is.
Speaker Change: Strong.
Speaker Change: And <unk> is increasing with investments increasing.
Speaker Change: Yeah.
Their business is strong that has led to increased <unk> and Edvard is difficult to hedge some of course that remains a gap.
Speaker Change: And rate decline.
Speaker Change: Is one of the major contributors to the big Mark up.
Speaker Change: It's not that why we do 100% hedged.
Speaker Change: A fully hedged basis so.
In the end this was positive when rates go up.
Speaker Change: Of course, it would go to the reverse direction, but as I said.
Speaker Change: It's partly hedged so.
Speaker Change: It depends on the degree to what extent will that deliver results. Thank you.
Speaker Change: This time.
Speaker Change: In these numbers.
Is it half half what's the breakdown.
Speaker Change: What's the contribution of AUR increase.
Speaker Change: Is that the majority or do you think that the rate impact was bigger than <unk> or is it difficult to answer stock price.
Speaker Change: <unk> are going up so a O N has increased partly driven by.
Stock price increase and.
Speaker Change: And their business expansion also was a contributor.
Speaker Change: So.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Each factor had made in facts.
Speaker Change: <unk>.
Speaker Change: <unk>.
Speaker Change: I cannot meet.
Speaker Change: Your comment regarding the breakdown, but both factors were both significant contributors. Thank you very much.
Speaker Change: Now we move to next question come from your affiliation. Please state your company name and your name after hearing a muted announcement.
Speaker Change: <unk>.
Speaker Change: No a muted.
I'm alright from J P. Morgan Securities can you hear me.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: I have two questions first question regarding wholesales cost income ratio improvement.
Speaker Change: So 83% was achieved this time.
Speaker Change: Regarding the top line the revenue diversity diversification has advanced.
Speaker Change: Pension so regarding costs.
Speaker Change: Reduction so severance related costs came in though but our operational.
Speaker Change: Efficiency improvement and what is the progress of the core cost reduction. My second question is also related to cost of wealth management.
Speaker Change: So non personnel cost was reduced according to the explanation in the slide.
Speaker Change: But what is the content and lots more room for savings is there for wealth management cost so.
Speaker Change: Those are my two questions.
Speaker Change: Thank you very much for your questions Firstly regarding cost income ratio of wholesale.
Speaker Change: Is it the sub fees and no we are not satisfied yet but 83%.
Speaker Change: Was achieved this.
Speaker Change: At this time, so us the direction it is the positive direction.
Speaker Change: All alone.
We've hot Src JV.
Driven cost saving initiatives and as I see initiatives Aldo bezos initiatives.
50 billion yen cost saving measures have been implemented already so no the effects of saving are now materializing.
At a large picture.
Speaker Change: You can model change or.
Speaker Change: <unk> architecture.
Speaker Change: John's formation.
Such.
Speaker Change: Areas.
Speaker Change: We are we have specific measures that are waiting to be implemented. So we would like to do more from here.
Speaker Change: So overseas, there's inflationary environment.
So various.
Speaker Change: Cost upwards upward cost pressure is mounting but by suppressing such calls we would like to.
Speaker Change: Tightly control costs.
Speaker Change: Yeah.
Speaker Change: Regarding well to management cost control.
Speaker Change: Compared to wholesale wealth management cost saving has been going ahead of wholesale.
Speaker Change: As we looked at those two statements and various types of course, we have.
Speaker Change: Eliminated.
Speaker Change: It is not necessary.
Speaker Change: So 20 video yeah end of cost saving.
Speaker Change: He was identified and we have implemented measures to achieve that then we are seeing the effects of that.
Got it.
Speaker Change: The review of water management cost.
Speaker Change: Yeah.
Speaker Change: It was based mostly on the <unk>.
Speaker Change: Removal of unnecessary cost, but we are now in the next stage, where we are revisiting the entire picture for example, operational front to back process review is conducted for example, how much cost is being incurred in which department.
Speaker Change: So.
Speaker Change: Wealth partners wealth sales partner is still very thing centers.
Speaker Change: We're looking at the every detail you know.
Speaker Change: Airports to change operational structure and such initiative has started so we are expecting the results to come out from such initiatives down the road.
Speaker Change: You very much for your answer.
Speaker Change: Thank you very much I clearly understood.
Speaker Change: Now we move to next question come from your affiliation. Please state your company name and your name after hearing our music announcement.
Speaker Change: No our music.
Speaker Change: Is it <unk>.
Guy: Securities. My name is also Guy I Hope you can hear me, yes, we can hear you. Thank you very much.
Guy: There's an overlap with the.
Speaker Change: The question S before myself, but wholesale cost ratio.
Speaker Change: In your explanation stem at S O.
Speaker Change: You said that.
Speaker Change: It could be the issue of orix and revenue but.
Speaker Change: Thank you.
Speaker Change: We understand that this is sustainable.
Speaker Change: A sudden improvement between Q1 and Q2, so what would be the standard level.
Thank you very much.
Speaker Change: 83% cost ratio expense ratio in comparison to last year, it's a much more comfortable where we are controlling cost and at this time around revenue increased which was a major factor.
Speaker Change: As I explained in the previous question and answer.
Speaker Change: Dialogue.
Cost control will be.
Speaker Change: <unk>.
Speaker Change: Yeah.
Speaker Change: Separate from the level of revenue.
We will steadfastly continue to implement cost control initiatives.
Speaker Change: If we can maintain this level of revenue naturally be.
Speaker Change: Cost ratio is achievable.
Speaker Change: And.
Speaker Change: There's further room for reduction.
Speaker Change: Thank you very much.
Speaker Change: Second question.
Speaker Change: Page 26.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Four.
Speaker Change: Sure.
Speaker Change: Six two or three inflows of cash and securities quite.
Speaker Change: Inc.
Speaker Change: Great.
Yeah.
Speaker Change: Strong.
1649 for Q2.
Speaker Change: Thank you.
Speaker Change: One can you explain the ground factors for the strong inflows of cash and securities.
Speaker Change: He asked a similar question in Europe doesn't have planned for Q1, but I repeat the same question. Thank you, what's the backdrop of money coming in.
Speaker Change: The business strategy turnaround has made contributions to our performance.
Speaker Change: New customers acquisition of new Clos.
Clients is proceeding well and when we look inside.
The impact from existing customers.
Speaker Change: Seems to be better.
Speaker Change: As a result of segmentation.
Speaker Change: For sales partner.
Speaker Change: Of customers has become more focused itself.
Speaker Change: Our partners can offer more thorough and comprehensive service to each and every customer in India and the satisfaction from our customers has improved.
Speaker Change: And to.
Speaker Change: Our sales partners have been able to foster stronger trust with their customers.
And these customers.
Speaker Change: Our customers with large asset holdings to begin with so with the improvement of satisfaction and trust they may choose to.
Speaker Change: Offer no without more money.
Speaker Change: And with base business.
Speaker Change: Okay.
Speaker Change: With IV and with wealth management they.
Speaker Change: Have a common K P I S.
Speaker Change: Engaging business activities as you know Ivy has a very robust franchise, which will be leveraged.
Speaker Change: Two.
Speaker Change: Offer.
Speaker Change: <unk> solutions to our corporate clients.
Speaker Change: Human resources. It mismatch is an area where many of our customers.
Speaker Change: Have become keenly interested so is.
Speaker Change: Become easier to offer our proposals and solutions of course, there are differences company by company and we are providing customized approach depending on their requirements.
Speaker Change: Our corporate clients and also alliance is expanding.
Speaker Change: So.
Yeah.
Speaker Change: Introduction and sales is doing going along well.
Speaker Change: Thank you very much I have a follow up question.
Speaker Change: Next page page 27.
Speaker Change: Yes.
Speaker Change: Accounts with balance equity holding accounts in this quarter.
Speaker Change: 360000 accounts with violence and 28000.
Speaker Change: 280000.
Speaker Change: Equity holdings are down sudden increase what was the.
Speaker Change: The reason behind.
Speaker Change: Lying securities were taken over by Nomura Securities That's why.
Speaker Change: Thank you very much.
Speaker Change: Yeah.
Speaker Change: The next question is from <unk> from Bloomberg Intelligence. Please go ahead.
Speaker Change: Thank you very much.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Regarding recurring.
Speaker Change: Revenue asset I have three questions first.
Speaker Change: Revenue divided by asset so when we calculate the ratio compared to the.
Speaker Change: The previous quarter.
Speaker Change: Quarter, the ratio has come up and.
Speaker Change: And even when you calculate the average.
Speaker Change: So maybe that's due to the change in the mix and.
Speaker Change: But there was explanation previously provided to the.
Speaker Change: The.
Speaker Change: Marginal return on asset and does not go up but.
Speaker Change: US lots they are the change in the mix that contributed to the improvement in the ratio and the secondly.
Speaker Change: Seasonality driven improvement.
Speaker Change: Recurring revenue what kind of the recurring revenue is seasonally driven.
Speaker Change: With such a recurring revenue seasonally driven go up.
Speaker Change: In the third or fourth quarter as well as the second quarter and then thirdly recurring revenue is steadily increasing.
Speaker Change: But what is going to be the pace was speed.
Speaker Change: Is there going to be a major driver that will accelerate the <unk>.
Speaker Change: Speed of expansion for example.
Speaker Change: In the second half there'll be large ipos and when you have a deal flows.
Speaker Change: We did accelerate and to win work place of business become more active would it accelerate the recurring revenue.
Speaker Change: So what kind of changes do you expect will serve us the driver that will.
Speaker Change: To the right the recurring revenue. Thank you. Thank you very much for your question.
Speaker Change: Firstly.
Speaker Change: In terms of product mix.
Speaker Change: Significant change is not expected us I believe.
Speaker Change: Explained, but it is not that and there is no impact for example, private does that typo alternative type us sets when they flow in than a margin or return will go up so.
Speaker Change: So product mix had some effect and regarding seasonal factors. So semi annual fee that we received.
Speaker Change: In September and in March we received semiannual fee.
Speaker Change: So in the fourth quarter and the second quarter.
Speaker Change: So there is a tendency of boost from the semi annual fee because of the timing of receiving such.
Speaker Change: Such fees.
Speaker Change: And from here.
Speaker Change: How do we.
Speaker Change: For the increase.
Speaker Change: The revenue.
Speaker Change: We have otherwise ARY services, which we would like to strengthen further.
Speaker Change: Rather than pursuing transactions.
Speaker Change: We would like to.
Speaker Change:
Closely.
Managed clients portfolio and provide a device.
Speaker Change: So.
Speaker Change: When customers satisfaction or trust on US Girls, then we expect them to shift to more assets than Nomura.
In the past transaction with Nomura Securities sent out on flow or equities transaction spot.
Speaker Change: Believe me there is a gradual shift by the by increasing the level of our services.
Speaker Change: Good.
Speaker Change: Expect customers to shift the portfolio more to Nomura is going to be the biggest driver. Thank you very much I understood.
Speaker Change: The next question is by Citigroup Securities and U S M.
Speaker Change: Yeah.
Speaker Change: This is me Rob C D.
Are you receiving my voice, yes, we can hear you. Thank you very much.
Speaker Change: I have a couple of questions first M&A.
Speaker Change: Another question.
Speaker Change: Wealth management segment.
So one question each.
Speaker Change: And then a.
Speaker Change: Targets.
Speaker Change: To date.
Speaker Change: At large meetings.
Speaker Change: You talked about asset management area.
Speaker Change: Being the target I mean.
Speaker Change: Is that the right understanding.
And if possible.
Speaker Change: Yes.
Speaker Change: The missing piece for at Nomura.
Speaker Change: Yes.
Speaker Change: The reason I ask this question.
Lee in alternatives, there have been some attractive deals and recently.
Speaker Change: Large financial institutions asset management, and epic that has risen quite significantly.
Speaker Change: Yes.
And yet.
Thanks.
Yes.
Speaker Change: I think there.
Speaker Change: Too many players do you still want to go in.
Speaker Change: So that's my first question and second lien.
Speaker Change: In wealth management.
Speaker Change: New acquisition customers.
My question will overlap with Watsco sounds question, but in the previous quarter, you talked about private wealth management high net worth and doing.
Speaker Change: Doing well in terms of acquisition of new customers through reference.
Speaker Change: And when we just take a look at the acquisition of new customers. The number it seems to have gone down is this a one time off trend or do you think that you've gained enough new customers. So that they will be slowed down or do you still have more room for increasing number of customers.
Speaker Change: Thank you very much.
Speaker Change: Are all on the target of Raymond <unk> asset management is that a target area.
Yes, it continues to be our target area, what's missing piece.
Speaker Change: Yeah.
Speaker Change: Is the biggest.
Speaker Change: Asset management company in Japan in terms of foreign equity management.
Speaker Change: We are proud to have a certain track record, but the focus is limited that taken into consideration.
Speaker Change: I think it's right to say that.
Speaker Change: The rest is a missing piece and of course, we're interested in alternate Davis a bit.
Speaker Change: That issue is we are watching at the expensive price so where.
Speaker Change: Is the market, what's the opportunity and how much room into do we have in terms of our capital.
Speaker Change: We will continue to monitor the situation.
On the acquisition of new customers.
Speaker Change: It's not that we're.
Speaker Change: Trying to build up the number of customers are buying.
Speaker Change: Alrighty.
Speaker Change: Is.
Speaker Change: Rather than seeking maximization of the number of customers, we want quality customers.
Speaker Change: Do you want to attract quality customers.
We want to offer services to quality customers.
Speaker Change: As I already mentioned.
Speaker Change: Partner.
Speaker Change: The number of customers.
Speaker Change: One partner covers has been reduced.
Speaker Change: Uh huh.
Speaker Change: That means that the time, each button as Vince per customer.
Speaker Change: Is longer.
So more services being provided to customers.
Speaker Change: And there's higher satisfaction. So much so that we want our customers to refer us to friends and families.
Speaker Change: And the partners to have more time.
Speaker Change: So when I talk with partners I think there is a more of a mood to try to cultivate new customers. So in the first half.
Speaker Change: Turning of new accounts has risen.
Significantly.
Speaker Change: And you said that there's lack of visibility.
And that's something that we need to think about but.
Speaker Change: We will continue to expand the coverage of our customers.
Speaker Change: Thank you very much.
Speaker Change: Sorry, I haven't done enough homework right.
Speaker Change: Yeah.
Speaker Change: On.
Speaker Change: M&A opportunity you.
Speaker Change: Are the biggest company in the sector, but.
Speaker Change: Yeah.
Speaker Change: In terms of our customers I don't understand.
Where the customers are.
Speaker Change: In terms of.
Speaker Change: New customers, who still don't have a transaction with Nomura do you think that the customer number can grow double triple of where it lives today.
Speaker Change: Thank you very much yeah. It's also partly due to the segmentation of our customers.
Speaker Change: Does that makes sense, yes, we have customer coverage, but.
Speaker Change: What about the potential I think there still is a huge potential.
Speaker Change: Maybe a customer has opened an account, but not deposited much money.
Speaker Change: And they are in.
Speaker Change: In active customers.
Speaker Change: No.
Speaker Change: This customer has an open and talent.
Speaker Change: And we want to attract the customers to do more transactions with Nomura and newly emerging.
Speaker Change: Customers, who are about to become the next generation high net worth we want to.
Speaker Change: Reach out more to such customers too.
Speaker Change: For example, I area, we're focusing on is workday.
Speaker Change: I think this could become a gigantic market.
Speaker Change: And in the U S. On you observed overseas markets. So you know well the characteristics of such segment and there is enormous potential it in such a market.
Speaker Change: We will continue our approach to the workplace business and reach out to those customers.
Speaker Change: We've been able to reach out to customers, but there still remains areas, where we haven't yet been able to reach out.
Speaker Change: Thank you very much that was a clear answer thank you.
Speaker Change: It's time to finish and we liked it at Glu question answer session.
Speaker Change: If you have some more questions. Please ask our Nomura Holdings IR Department.
Speaker Change: India, and we'd like to make closing addressed by Nomura Holdings.
Speaker Change: Thank you very much.
Speaker Change: So Q2 result was pretty strong.
Yeah.
Yeah.
Speaker Change: Okay.
Speaker Change: As we analyze our performance from various perspectives and for example, new wealth management P. T I imagine over the last year, we have seen a great progress looking back on the past year.
There has been a tail wind of market and we do understand that but more than that.
Speaker Change: Our own measures took effect and resulted in numbers.
Speaker Change: For our wholesale has been struggling for a while but oh, we are starting to see bright signed.
Speaker Change: In wholesale even though we are not satisfied with where we are 11, 6% of our OE.
You got to wonder, whether it is sustainable or not.
Speaker Change: So.
Speaker Change: We would like to deliver such a level of number you know stable mother, so for that to be able to like to diversify revenue and generate high quality revenue while at the same time controlling cost and risk.
Speaker Change: So we do.
Speaker Change: I'd like to do our best to deliver that.
Speaker Change: Good.
Speaker Change: Performance and thank you for your continued support thank you.
Speaker Change: Thank you for taking your time and that concludes today's conference call.
Speaker Change: You may now disconnect your lines.
Uh-huh.