Q1 2026 Nomura Holdings Inc Earnings Call
Unknown Attendee: Next quarter operating resort for fiscal year ended March 2026, conference call.
Operator: Please be reminded that today's conference call is being recorded at the request of the hosting company. Should you have any objections, you may disconnect at this point in time. During the presentation, all the telephone lines are placed for listen-only mode.
Good day, everyone, and welcome to today's nominal holidays past quarter operating results for the fiscal year ended March 2026 conference call.
Please be reminded that today's conference call is being recorded at the request of the hosting company.
Should you have any objections, you may disconnect at this point in time.
Operator: The question and answer session will be held after the presentation.
During the presentation, all the telephone lines are placed for a listen-only mode.
The question-and-answer session will be held after the presentation.
Operator: Please note that this telephone conference contains certain forward-looking statements and other projected results, which involve known and unknown risks, delays, uncertainties, and other factors not under the company's control. which may cause actual results, performance, or achievements of the company to be materially different from the results. Performance, or other expectations implied by these projections. Such factors include economic and market conditions, political events and investor sentiments, liquidity of secondary markets, level and volatility of interest rates. Currency exchange rate.
Please note that this telephone conference contains certain forward-looking statements and other projected results.
This involved No. 1 and unknown disc delays in certainties and other factors not under the company's control.
Which may cause actual results, performance, or achievements of the company to be materially different from the results.
Performance or other expectations implied by these projections.
Such factors include economic and market conditions, political events, and investor sentiments. Liquidity of secondary markets,
Level and volatility of interest rates.
Operator: Security Evaluations Competitive Conditions and Size, Number and Timing of Transactions With that, we'd like to begin the conference.
Currency exchange rates.
Security evaluations.
Competitive conditions and size.
Number and timing of transactions.
Hiroyuki Moriuchi: Mr. Hiroyuki Moriuchi, Chief Financial Officer, please go ahead. Moriuchi CFO speaking. Thank you very much for joining us. This evening.
We'd like to begin the conference.
Mr. Hero, Chief Financial Officer. Please go ahead.
CFO speaking. Thank you very much for joining us.
Hiroyuki Moriuchi: Let me brief you on the results of operations for the first quarter. First of all... Please turn to page 2 of the document. This is a page on the executive summary. Group net revenue came in at 523.3 billion yen, up 16% over last quarter. Income before income taxes grew 64% to 160.3 billion, while net income was 104.6 billion yen, an increase of 45% compared with last quarter. The introduction of reciprocal tariffs for the United States and increase in geopolitical risk led to an uncertain market environment, but all four divisions, including the newly established banking division, achieved growth in both revenues and profits compared with last quarter.
This evening.
On the results of operations for the first quarter, first of all,
Please turn to page 2 of the document.
This is a page on the executive summary group. Net revenue came in at 523.386% over last quarter. Income before income taxes grew 64% to ¥160.3 billion. While net income was ¥104.6 billion, an increase of 45% compared with last quarter.
Hiroyuki Moriuchi: In addition, the sale of fixed assets by Nomura Properties announced last quarter contributed to income before income taxes of around 56 billion yen in the first quarter. As a result, EPS was 34.04 yen and annualized ROE was 12%.
Hiroyuki Moriuchi: Next, let's look at the performance of each business, starting with Wealth Management on page 5. Wealth Management First Quarter Net Revenue increased 6% to 105.8 billion yen and Income Before Income Taxes rose 8% to 38.8 billion yen. Despite the stock market's sharp decline in April, the provision of consulting services tailored to clients' needs resulted in an increase in primary bond sales and secondary stock transactions that captured market fluctuation, and flow revenue etc.
The introduction of reciprocal tariffs for the United States and an increase in geopolitical risk led to an uncertain market environment. However, all four divisions, including the newly established banking division, achieved growth in both revenues and profits. Compared with last quarter, the sale of fixed assets by Nomura Properties announced last quarter contributed to income before income taxes of around ¥56 billion. In the first quarter, as a result, EPS was ¥34.04 and annualized ROE was 12%. Next, let's look at the performance of each business, starting with Wealth Management on page 5.
Hiroyuki Moriuchi: grew 16%. Partly owing to the newly established Japan Stock Investment Fund, recurring revenue assets saw a net inflow for the 13th consecutive quarter. Meanwhile, the recurring revenue cost coverage ratio over the last four quarters reached a high level of 69% owing to our efforts to keep costs down.
Hiroyuki Moriuchi: Please turn to page 6 for an update on total sales by product.
Hiroyuki Moriuchi: Total sales increased 24% to 6.7 trillion yen. Sales of stock rose sharply compared with the previous quarter, partly owing to a tender offer worth more than 1 trillion yen. Sales of bonds increased 42% owing to large primary transactions including unsecured SoftBank Group corporate bonds.
With management first quarter, net revenue, increased 6% to 105.8 billion yen and income. Before income taxes, Rose 8% to 38.8 billion yen, despite the stock market's sharp decline. In April, the provision of Consulting Services tailored to client's needs. Resulted in an increase in primary Bond sales, and secondary stock transactions. That captured Market, fluctuation and flow Revenue Etc. Grew 16% partly owing to the newly established Japan. Stock investment fund, recurring Revenue assets, saw a net inflow for the 13th consecutive quarter. Meanwhile the recurring very new cost coverage ratio over the last quote, 4 quarters reached a high level of 69%. Owing to our efforts to keep costs down. Please turn to pay 6 for an update on total sales by product. Total sales. Increased 24% to 6.7 trillion yen,
Hiroyuki Moriuchi: We will now look at KPIs on page 7. As shown on the top left, recurring revenue assets saw a net inflow for the 13th consecutive quarter at 278.9 billion yen. Meanwhile, as shown on the top right, recurring revenue declined versus the previous quarter.
Sales of stock rose sharply compared with the previous quarter, partly owing to a tender offer worth more than ¥1 trillion. Sales of funds increased 42%, owing to large primary transactions, including unsecured SoftBank Group corporate bonds.
We will now look at KPIs on page 7.
Hiroyuki Moriuchi: This was because of a decline in recurring revenue assets during the quarter as a result of the decline in stock prices in April and because of the absence of investment advisory fees in the first quarter which are collected on a half yearly basis. However, owing to the net inflows of recurring revenue assets and market recovery, recurring revenue assets recovered to 24.6 trillion yen at the end of June.
Hiroyuki Moriuchi: Next, please turn to page 8 for Investment Management. Net revenue was up 18 percent to 50.6 billion yen while income before income taxes rose 39 percent to 21.5 billion yen. As you can see on the bottom left, investment gain and loss improved sharply quarter and quarter to 9.9 billion yen. This reflected an improvement in investment related to American Century Investments and driven by private equity investment from Nomura Capital Partners. Business revenue fell 6% owing to a decline in Nomura, Babcock and Brown Net Revenues and the lower performance fee compared to the previous quarter, but asset management fees, which make up the lion's share of business revenue, remain solid.
As shown on the top left, recurring revenue assets saw a net inflow for the 13th consecutive quarter at ¥278.9 billion. Miwa, as shown on the top right, indicated that recurring revenue declined versus the previous quarter. This was due to a decline in recurring revenue assets during the quarter as a result of the decline in stock prices in April and the absence of investment advisory fees in the first quarter, which are collected on a half-yearly basis. However, owing to the net inflows of recurring revenue assets and market recovery, recurring revenue assets recovered to ¥24.6 trillion at the end of June.
Next, please turn to page 8 for investment management.
Net revenue was up 18% to ¥50.6 billion, while income before income taxes rose 39% to ¥21.5 billion. As you can see in the bottom left, investment gain and loss improved sharply quarter over quarter to ¥9.9 billion. This reflected an improvement in investments related to American Century Investments and was driven by private equity investments from Nomura Capital Partners.
Hiroyuki Moriuchi: Please turn to page 9 for an update on the asset management business, which is a key source of business revenue. As you can see on the top left of the page, assets under management at the end of June hit a record high level of 94.3 trillion yen owing to market recovery. Net inflows came to around 108 billion yen as shown on the bottom left with net outflows from the investment trust business totaling around 207 billion yen and net inflows to the investment advisory and international businesses of around 315 billion yen. In the investment trust business, investment trusts excluding ETFs and MRFs saw net inflows of around 280 billion yen driven by newly established Japanese equity investment funds while ETFs saw outflows of approximately 670 billion yen.
Business revenue fell 6% owing to a decline in Nomura Babcock and Brown net revenues and the lower performance fee compared to the previous quarter. However, asset management fees, which make up the lines share of business revenue, remain solid. Please turn to page 9 for an update on the asset management business, which is a key source of business revenue.
As you can see in the top left of the page, assets under management at the end of June hit a record high level of ¥94.3 trillion, owing to market recovery.
Net inflows came to around ¥108 billion, as shown on the bottom left.
Hiroyuki Moriuchi: These ETFs outflows are presumed to be due to selling by certain investors, individuals waiting to reinvest and profit tagging. Despite net outflows related to global equities, the investment advisory and international businesses saw net inflows owing to inflows into yen bonds and international high yield bonds. As you can see in the bottom right, we continue to build out our private asset businesses steadily while the yen strengthened during the quarter.
Hiroyuki Moriuchi: Alternative assets under management reached a record high driven by continued growth in net inflows.
Investment, Trust business investment, trusts excluding ETFs and mrfs. Sonnet inflows of around, 280 billion, yen driven by newly established Japanese Equity investment funds. While ETFs saw outflows of approximately 670 billion yen, the etf's outflows are presumed to be due to selling by certain investors individuals waiting to reinvest and profit taking despite net outflows related to Global equities. That the investment advisory and international businesses saw, net inflows owing to inflows into Ian, bonds, and international high yield bonds. As you can see in the bottom right. We continue to build out our private asset businesses steadily, while the Yen strengthened during the quarter,
Hiroyuki Moriuchi: Please turn to page 10 for wholesale. Wholesale net revenue rose 1% to 261.1 billion yen and income before income taxes increased 12% to 41.9 billion yen. Global markets revenues increased 8% and investment banking revenues fell 27% dropping back after strong Q4 performance but still reached the highest level for Q1 since fiscal year 2016 and 17, the first fiscal year for which a comparison is possible.
Alternative assets under management reached a record high, driven by continued growth in net inflows. Please turn to page 10 for wholesale.
Hiroyuki Moriuchi: Please turn to page 11 for an update on business plan performance. Firstly, global market's net revenue increased 8% to 223.1 billion yen. Fixed income net revenue was up 18% at 124.8 billion yen.
Wholesale net revenue rose 1% to ¥261.1 billion, and income before income taxes increased 12% to ¥41.9 billion. Global markets revenues increased 8%, while investment banking revenues fell 27%, dropping back after strong Q4 performance. However, it still reached the highest level for Q1 since fiscal year 2016 and 2017, the first fiscal year for which a comparison is possible. Please turn to page 11 for an update on business plan performance.
Firstly, global markets net revenue increased 8% to ¥223.1 billion.
Hiroyuki Moriuchi: Let's look at the product breakdown. In macro products, rates successfully monetized the increased market volatility and client flows, resulting in substantial revenue growth in Europe. FX emerging revenues rose sharply in Asia. In spread products, credit revenues grew in Japan and Europe as the business successfully captured client flows, and securitized products maintained strong momentum, driven mainly by originations in the US.
In fixed income, net revenue was up 18% to ¥124.8 million. Let's look at the product breakdown in micro products, rates successfully monetized, the increased market volatility, and client flows, resulting in substantial revenue growth in Europe.
Hiroyuki Moriuchi: Equity's net revenue fell 3% to 98.3 billion yen. Equity products' net revenue was driven by strong performance in derivatives business in the Americas. Execution services' revenue fell following strong performance in the Americas in the previous quarter.
Hiroyuki Moriuchi: Please turn to page 12 for investment banking. Net revenue was 37.9 billion yen, down 27% from the previous quarter when performance was particularly favorable.
FX emerging Rivers rose sharply in Asia in spread products. Credit revenues grew in Japan and Europe as the business successfully captured client flows, and the security products maintained strong momentum driven mainly by originations in the U.S. Equities. Net revenue fell 3% to 98.3 billion yen. Equity products net revenue was driven by strong performance in the derivatives business in the Americas. Execution services revenue fell following a strong performance in the Americas in the previous quarter.
Please turn to page 12 for investment banking.
Hiroyuki Moriuchi: That said, as seen on the bottom right, it was the highest amount on record for the first quarter of the fiscal year. Based on the comparable data going back to fiscal year 2016-17, net revenue was driven by business in Japan, reflecting ongoing efforts of companies in Japan to improve capital efficiency and achieve growth. By product, in advisory, many M&A deals, chiefly in Japan, were announced and completed, including deals expected to be profitable after the second quarter.
Hiroyuki Moriuchi: In the league tables from the period from January through the end of June this year, in advisory, we ranked highest in the Japan-related M&A league table and 11th in the global M&A league table, demonstrating its global presence. In financing and solutions, etc., revenue rose in DCM in response to an increase in the value of domestic corporate bonds issued and fell in ECM, partly owing to seasonal factors.
Net revenue was 37.9 billion, yen down, 27% from the previous quarter. When performance was particularly favorable that said, as seen on the bottom, right? It was the highest amount on record for the first quarter of the fiscal year based on the comparable data going back to fiscal year 201617. Net revenue was driven by business in Japan, reflecting ongoing efforts at companies. In Japan to improve Capital, efficiency, and Achieve growth byproduct in advisory many a Monday deals. Chiefly in Japan were announced and completed including deals expected to be profitable after the second quarter in the league tables, from the period, from January through, the end of June this year. In advanced Theory, we ranked highest in the Japan related, a Monday League table and 11th in the global amount League table demonstrate demonstrating, its Global presence in financing and solutions.
Hiroyuki Moriuchi: Next, please turn to page 13 for banking, banking division, which became an independent division in April. In banking, net revenue was 12.8 billion yen, a rise of 12 percent, and income before income taxes was 3.6 billion yen, an increase of 19 percent. KPIs such as loan outstanding and investment trust balance stayed buoyant, as you can see, and income from lending activities and trust and agent services held firm.
Etc., revenue rose in DM in response to an increase in the value of domestic corporate bonds issued and fell in ECM partly owing to seasonal factors. Next, please turn to page 13 for banking, which banking division became an independent division in April.
Hiroyuki Moriuchi: In May, work to upgrade Nomura Trust and Banking's core banking system was completed, and preparations for the adoption of sweep accounts in next fiscal year have been going smoothly.
Hiroyuki Moriuchi: Next, page 14. Group-wide expenses were 363.0 billion yen, a 2 percent increase from the previous quarter. Compensation and benefits were 186.3 billion yen, rising 8 percent, reflecting an increase in performance-linked bonus provisions. Information processing and communications expenses were 57.2 billion yen, a decline of 5 percent, mainly attributable to yen appreciation, and also owing to factors including the dropping out of one-time expenses recognized in the previous quarter.
In banking, net revenue was ¥12.8 billion, a rise of 12%. Income before income taxes was ¥3.6 billion, an increase of 19%. Key performance indicators, such as loan outstanding and investment trusts balance, stayed buoyant, as you can see. Income from lending activities and trust and agent services held firm. My work to upgrade numerous trust and banking systems was completed, and preparations for the adoption of sweep accounts in the next fiscal year have been going smoothly. On the next page, group-wide expenses were ¥300 million.
63.0 billion yen, a 2% increase from the previous quarter.
Hiroyuki Moriuchi: As an additional detail, other expenses came to 51.8 billion yen, nearly the same amount that was recognized in the previous quarter. This includes 6.6 billion yen related to compensation for losses arising from illegal trades in client accounts due to phishing scams, and 2.7 billion yen related to the acquisition and integration of the U.S. asset management business of Macquarie Group. Other expenses look the same as the previous quarter because professional fees and other transaction-related expenses declined.
Hiroyuki Moriuchi: Finally, financial position. Page 15. In the table on the bottom left, you can see that Tier 1 capital was about 3.4 trillion yen, down about 100 billion yen from end of March, and risk assets were about 22.9 trillion yen, an increase of about 1.4 trillion yen, with a result that the common equity Tier 1 ratio was 13.2 percent at the end of June, within the 11 to 14 percent target range we introduced at the investor day in May. This ratio is down from 14.5 percent at the end of March, attributable to an increase in risk assets arising in the course of normal business activities in the agreement to acquire all equity of the U.S.
186.3 billion yen, rising 8%, reflects an increase in performance-linked bonuses. Provisions, information processing, and communications expenses were 57.2 billion yen, a decline of 5%, mainly attributable to yen appreciation and also owing to factors including the dropping out of one-time expenses recognized in the previous quarter, as an additional detail. Other expenses came to 51.8 billion yen, nearly the same amount that was recognized in the previous quarter. This includes 6.6 billion yen related to compensation for losses arising from illegal trading in client accounts due to phishing scams and 2.7 billion yen related to the acquisition and integration of the US Asset Management business of the Mari Group. Other expenses look the same as the previous quarter because professional fees and other transaction-related expenses declined. Finally, the financial position.
Page, 15.
in the table on the bottom left, you can see that Tier 1 Capital was about 3.4 trillion yen down about 100 million yen from end of March and risk costs that were about 22.9 trillion and an increase of about 1.4 trillion yen with a result that the common Equity Tier 1 ratio was 13.2% that the end of June within the
Hiroyuki Moriuchi: asset management business of Macquarie Group factors that had the effect of depressing the ratio by about 0.8 percent. After the closing of the acquisition, the method of calculating the regulatory capital ratio will change, and the effect of the acquisition on the ratio will change.
Hiroyuki Moriuchi: This concludes our overview of our first quarter results.
Hiroyuki Moriuchi: I would like to close with some final remarks. The first quarter got off to an uncertain start as the U.S. introduced its tariff policy in early April, and various events pointed to heightened geopolitical risk. Under such circumstances, we think our business got off to a steady start, with revenue and profit rising quarter on quarter in every division. In the first quarter, EPS was 34.04 yen and ROE was 12.0 percent, which are the highest, respectively, since the first quarter and the third quarter of fiscal year 2020 and 2021. On this basis, we have attained the quantitative target announced last year for 2030 of consistently achieving ROE of 8 to 10 percent or more for five straight quarters.
11% to 14% target range. We introduced Investor Day in May. This ratio is down from 14.5% at the end of March, attributable to an increase in risk assets arising in the course of normal business activities. In the agreement to acquire all equity of the U.S. Asset Management business of Mari Group, factors had the effect of depressing the ratio by about 0.8%. After the closing of the acquisition, the method of calculating the regulatory capital ratio will change, and the effect of the acquisition on the ratio will change. This concludes our overview of our first quarter results.
Hiroyuki Moriuchi: The Nikkei stock average has been above the 40,000 yen level recently, gradually making up for ground lost when it declined in April this year. Net revenue in wealth Manage human. in Japan. A Nikkei stock average has been above the 40,000 yen level recently, gradually making up for ground lost when it declined in April this year. Net revenue in wealth management thus far in July has been slightly above the first quarter since mid-June. Client sentiment has gradually improved in tandem with an easing of market uncertainty, lifting the volume of business involving stocks and investment trusts. In July, recurring revenue has been rising in response to a recovery in market prices, with inflows of recurring revenue assets continuing to exceed outflows.
I would like to close with some final remarks. The first quarter got off to an uncertain start as the U.S. introduced its tariff policy in early April, and various events pointed to heightened geopolitical risk. Under such circumstances, we think our business got off to a steady start, with revenue and profit rising quarter on quarter in every division. In the first quarter, EPS was $34.04 million, and our ROI was 12.0%, which are the highest respectively since the first quarter and the third quarter of fiscal year 2020 and 2021. On this basis, we have attained the quantitative target announced last year for 2030 of consistently achieving ROE of 8% to 10% or more.
Great quarters. The indicators to coverage have been above the 40,010 level. Recently, we have been gradually making up for ground lost when it declined in April this year. Net revenue in the world...
Management.
In Japan.
Hiroyuki Moriuchi: We think wealth management will be able to shine precisely because of the changing conditions and we look forward to continuing the conversation with our clients. In wholesale, equity products have been doing well in global markets business. Corporate actions aimed at improving capital efficiency and growth, particularly in Japan, remained at a high level in investment banking. In July thus far, net revenue in wholesale has been tracking in line with the level in the first quarter and continues to be solid.
Uh, Nikki, so coverage has been above the 40,000, Jen level. Recently, gradually making up for ground lost. When it declined in April, this year, net revenue in World management management. Thus far in July has been slightly above the first quarter since mid, June client sentiment has gradually improved in tandem with an easing of markets uncertainty, lifting the volume of business involving stocks and Investment Trust in July. Recurring, Revenue has been rising in in response to a recovery in market prices with implodes of recurring Revenue assets continuing to exceed outflows. We think wealth management will be able to shine precisely because of the changing conditions and we look forward to continuing the conversation with our clients in wholesale Equity products have been doing well in global markets business, corporate actions, corporate actions aimed at improving Capital, efficiency and growth particularly in Japan remain
Hiroyuki Moriuchi: We would like to provide some more context on the issue of illegal trading in client accounts resulting from phishing scams. In response to instances of illegal trading, we raised the security level in stages and the number and scale of damages have come down from the peak.
Hiroyuki Moriuchi: Our plan now is to accelerate the implementation of more sophisticated security measures and roll out a pass-key authentication system that uses more secure biometric authentication sometime this fall. But we should mention here that even our existing security protocols have been examined by external parties and have been judged to be up to spec with industry standards. We have been in direct contact with almost all clients that have been affected by the attacks. We plan to deal with the situation thoroughly in consultation with them.
Hiroyuki Moriuchi: We plan to monetize business opportunities while continuing to pay close attention to our risk thresholds and cost controls. We ask for your continued support.
To accelerate the implementation of more sophisticated security measures and roll out a pass key authentication system that uses more secure biometric authentication. Sometime this fall, but we should mention here that even our existing security protocols have been examined by external parties and have been judged to be up to speed with industry standards. We have maintained direct contacts with almost all clients that have been affected by the attacks. We plan to deal with all thoroughly in consultation with them. We plan to monetize business opportunities while continuing to pay close attention to our risk thresholds and cost controls. We ask for your continued support.
Operator: We have a question and answer session now. If you have a question, press SHARP7. If you want to cancel a question, press sharp 7.
We have a question and answer session now.
If you have a question, press Sharp 7.
If you want to cancel a question, press Shop 7.
Kazuki Watanabe: The first question. is by Watanabe-san of Daiwa Securities. Watanabe-san, please go ahead. Watanabe of Daiwa Securities. I have two questions.
The first question.
Is by securities.
What, please go ahead.
Hiroyuki Moriuchi: First of all, phishing scam and the compensation for losses. Q1, 6.6 billion yen. But up to end of June, all of the illegal transactions had been reflected, and I think your policy is to bring back the position of the clients back. Is it going to be expanded? Is it going to be reflected? in your credit cost.
Security. So, I have two questions. First of all, phishing scam.
And the compensation for losses in Q1 is ¥6.6 billion.
But up to the end of June, all of the illegal transactions had been reflected, and I think your policy is to bring back the position of the client’s back.
Is it going to be expanded? Is it going to be reflected?
In.
Hiroyuki Moriuchi: And then on page 11. If you look at the current growth, FIQ was week while equity was strong. Other than Forex, what's the backdrop to FIC and equity trends? And also, if you have monthly trends for FIC and equity, we would also appreciate such information. Thank you.
Your credit card, and then on page 11.
If you look at the current growth fee, it was.
Weak while Equity was strong.
Other than Forex, what's the backdrop to fix an equity trends? And also, if you have monthly trends for Fick and equity, we would also appreciate such information. Thank you.
Hiroyuki Moriuchi: Watanabe-san, thank you for the question. First of all, on the phishing scam... and the compensation. whether the cost reflects the transactions up to end of June, up to 28th of June. On the assumption of restoring their positions, we estimated the cost. Counting the trays up to 28th of June. So I think it's safe to say that all of the Illegal trades up to the end of June had been reflected and also where will this expense appear on which line other Expenses it's included in the line of other expenses. I hope I answered your first question Yes, thank you very much.
Thank you for the question. First of all, on the phishing scam.
And the compensation.
Whether the cost reflects the.
Transactions up to the end of June up to the 28th of June.
On the assumption of restoring their positions, we estimated the cost.
Counting the trades up to June 28. So I think it's safe to say that all of the...
Illegal trace up to the end of June had been reflected, and also, where will this expense appear? On which line? Other expenses? It's included in the line of other expenses. I hope I answered your first question.
Kazuki Watanabe: That was Watanabe speaking.
Yes, thank you very much.
Hiroyuki Moriuchi: Then this is the CFO speaking. In comparison to peers, Excluding Forex, equity, strong, fixed income, rather weak, that was your impression. And regarding fixed income, as you rightly pointed out, if we exclude strong yen, then... In comparison to the American peers, I think we've been able to catch up to a certain extent. However, we may appear to be slightly weak because of the confusion of the April market. The Japanese rates product was rather lagging, and that had caused some impact. Japan's rates, after May, we have been able to capture customer flow. However, due to the lag in April, that had been reflected in our performance.
That was what I was speaking.
Uh, then this is the CFO speaking.
In comparison to peers.
Excluding Forex, equity is strong while fixed income is rather weak. That was your impression. Regarding fixed income, as you rightly pointed out, if we exclude a strong yen, then...
A, in comparison to our American peers, I think we've been able to catch up to a certain extent. However, we may appear to be slightly weak because of the confusion in the April market. The Japanese rates product was rather lagging, and that had caused some impact.
Japan's rates.
Unknown Attendee: And Japan credit, SPPC, securitization.
After May, we have been able to capture customer flow; however, due to the lag in April, that had been reflected in our performance in Japan.
Credit.
Unknown Attendee: Unknown Attendee, Mia Nagasaka, Kentaro Okuda, Nomura Hldgs, Wataru Otsuka, Kentaro in April. There was slight strength. 30% in the mid-30s. But May, June, more or less the same. So Japan was rather weak, but outside of Japan, there was some strength. And on the equity side in April. There was confusion and that increased volatility in trade. We have been successfully been able to do risk management. So as far as equity is concerned. slightly or close to 40% revenue was gained for equity so April was strong so that's where we are today. I hope I answered your question.
Slightly up. There was, uh,
Bouncing back from that strength and also the monthly trend at the global level in fixed income.
In April.
There was slight strength.
30% in the mid-30s.
But May June.
More or less the same. So, Japan was rather weak, but outside of Japan, there was some strength.
And on the equity side in April.
There was confusion, and that increased volatility and trade. We have been successfully able to do risk management. So, as far as equity is concerned,
Kazuki Watanabe: Watanabe speaking. Thank you very much.
Slightly or close to 40% revenue was gained for equity, so April was strong. That's where we are today. I hope I answered your question.
Kazuki Watanabe: And can I also confirm the reasons behind the strength in equity?
What another speaking. Thank you very much.
And can I also confirm the reasons behind the strength in equity?
Hiroyuki Moriuchi: Equity, this is the CFO speaking. Equity, yes, our performance was strong, especially the America's customer flows led to U.S. derivatives performance being significantly strong.
Equity. This is the CFO speaking. Equity. Yes.
Kazuki Watanabe: Thank you.
Our performance was strong, especially the Americas customer flows, which led to our derivatives performance being significantly strong.
Thank you.
Kazuki Watanabe: Watanabe speaking, thank you very much for your responses.
Speaking, thank you very much for your responses.
Natsumu Tsujino: The next person asking a question is Ms. Tsujino of B of A Securities, Tsujino-san please. Thank you. regarding global markets.
The next person asking the question is Miss Sino of Bo Ba Security.
No sound, please.
Thank you.
Regarding Global markets.
Natsumu Tsujino: In July, what is the situation that you could, is there any particular situation you can talk about so compared to the other periods? for the race. FIC in Europe increased in profit, but why is this situation?
In July.
What is the situation that you could? Is there any particular situation you can talk about? Compared to the other period.
During that time for Japan and also for overseas, could you add some color on the GM situation? Secondly, about the technical details?
For each region, IMIA is in the red ink. But, uh, looking at the GM geography,
Thick in Europe increased in profit. But, uh, why is this situation?
Unknown Attendee: Thank you, Tsujino-san, for your questions. Firstly, your first question.
Thank you for your questions. Firstly, your first question.
Unknown Attendee: Unknown Attendee, Mia Nagasaka, Christopher Willcox, Shinichi Okada, Nomura Hldgs, Kentaro But, overall... performance is in line with the first quarter level, and also could you give me a moment to address your second question? for Japan and overseas. Situation of Japan, business in Japan is not weak, but overseas business is stronger than the business in Japan. That's our impression.
Uh situation after on in and after July any comment from our end overall, in GM, the business is not so bad and especially Equity is a strong. And a fixed income is relatively weak.
But overall.
Performance is in line with the first quarter level, and also I could—would you give me a moment?
Second question.
Uh, for Japan and the overseas situation of Japan's business. In Japan, it is not weak, but the overseas businesses are stronger than, uh, the business in Japan. That's our impression.
Unknown Attendee: Are you talking about both equities and FIC? Thank you. In Japan, fixed income is weaker than equities, and equities are stronger. and for each region. in the USA, in America. Recently, we see a solid performance. In EMEA, the business is in line with our assumptions, and in AEJ there is some slowness, but it's within the assumed level, assumed range.
Are you talking about both equities and fixed income?
Thank you. In Japan, fixed income is weaker than equities, and equities are stronger.
And uh, for each vision.
In the USA in America.
Solid performance.
In India.
Other businesses in line with our assumptions, and, uh, in AJ there's some slowness, but it's within the assumed level or assumed range. Okay.
Unknown Attendee: And your second question. So the reason why the weakness, the reason for the weakness in EMEA, why was loss incurred? That's because due to market factors, laser business was weak, so that was the reason. Also, anemia. When we look at the cost, personnel cost. Due to the compensation regulation in... Europe in the first quarter, the cost... that had to be recognized in the first court was inflated because of the regulatory impact.
And your second question.
So, the reason for the weakness in India, why was a loss incurred?
That's because, due to market factors, the laser business was weak.
So that was the reason for the anemia.
When we look at the cost,
Personnel cost due to the compensation regulation in.
Europe in the first quarter, the cost.
Unknown Attendee: So those are the two factors that explain the slowness in EMEA.
Unknown Attendee: Other than them, the remainder is accumulation of smaller items. I couldn't catch what you said regarding, what you said about the market, I couldn't catch what you said, could you repeat? I said, Laser Digital, we have a digital asset business, and that was affected by the market conditions, and the performance there was not so strong. understand. Was it so weak? The market was recovering, if I recall, April through June. The market was weak in January through March. Thank you.
That had to be recognized in the first quarter was inflated because of the regulatory impacts. So those are the two factors that explain the slowness in India. Other than them, the remainder is an accumulation of smaller items.
I couldn't catch what you said, regarding what you said about the market. I couldn't catch what you said, could you repeat? Uh, I said, there's a digital. We have a digital asset business, and that was affected by the market conditions, and the performance. There was not so strong.
Okay.
Understand.
Was it so weak?
But the market was recovering despite a recall from April through June. The market was weak in January through March.
Muraki: not only the bitcoin but we hold various currencies and we also conduct venture startup type investing as well so we received we were affected on multiple fronts okay understood thank you The next question is by Muraki-san of SNBC Neko Securities.
Generally speaking regarding crypto asset and flow, aside from Japan, a flow overseas in the April through June quarter flow. Was there was a, a sufficient flow in my understanding. Thank you.
Not only the Bitcoin. But, uh, we hold various currencies and we also conduct Ventures startup type investing as well. So we received, uh, we were affected on multiple fronts. Okay, understood, thank you.
The next question is.
Muraki: Muraki-san, please go ahead. Muraki of SNBC Niko.
By of SMBC Nikko securities.
Mam. Please go ahead.
Muraki: On capital policy and M&A, I have a few points I wish to ask. Page 15, Capital Policy.
On capital policy and M&A, I have a few points. I wish to ask about page 15 of the capital policy.
Muraki: You're the new CFO, Moriuchi-san. I want to confirm with you your basic policy. Here, hierarchy of capital policy. What's the priority? What's at the helm of capital policy? And also, Q2, share buyback, set one ratio. Macquarie Closing on the death assumption, 12.5 probably at performer basis, but target range that would be the midpoint of the target range. What's the probability of risk taking? And what do you think about the level? Is it high? Low?
You're the new CFO.
I want to confirm with you, your basic policy.
Here, hierarchy of capital policy—what's the priority? What's at the helm of capital policy? And also Q2.
Share buyback set. 1 ratio.
McCrory.
Closing on that assumption of 12.5, probably at a performer basis, but target range. That would be the midpoint of the target range.
What's the probability of risk-taking?
What do you think about the level? Is it high or low?
Muraki: Regarding Macquarie... December end. ...was the original target date for closure. Has there been updates?
and,
Regarding McCrory.
December. And
Was the original target date for closure?
Muraki: and also intangibles. Amitization and contribution to profits. If you have any updates on those points, I would also appreciate it.
Has there been update?
And also intangible.
Hiroyuki Moriuchi: Thank you.
And contribution to profits. If you have any updates on those points, I would also appreciate it. Thank you.
Hiroyuki Moriuchi: This is Moriuchi speaking. Thank you for your questions. First question was on capital policy. And what... are priority in capital policy, that is. how I interpreted your question. First of all, It's about business strategy. Going forward in our business strategy, investment, what's the expected investment and what are the specific opportunities and what are the strategies to capture those opportunities? Those are the points we need to think first. And in such a strategy, if We are not able to find many investment opportunities, then we will tilt towards returning benefits to the shareholders. But if we think that there are many opportunities, we've committed to more than 50% return of benefit to shareholders.
This is Mario G. speaking. Thank you for your questions. The first question was on capital policy.
And what?
Our priority in capital policy, that is,
Our interpretation of your question. First of all.
It's about business strategy.
Investment.
What's the expected investment, and what are the specific opportunities? What are the strategies to capture those opportunities? Those are the points we need to think about first.
and in such strategy, if
Hiroyuki Moriuchi: So that taken into consideration, we will try to strike the ideal balance.
We are not able to find many investment opportunities, so we will tilt towards returning benefits to the shareholders. However, if we think that there are many opportunities, we've committed to more than 50% return of benefit to shareholders. Taking this into consideration, we will try to strike the ideal balance.
Hiroyuki Moriuchi: A related point. 12.5%. It's the midpoint of the range between 11 to 14 percent. What Our evaluation of the level. In terms of capital... Capital will become slightly thin, so... It's probably thinning the capital rather than being at the midpoint. Set 1, the lower bound, 11%. It's difficult from the capital fellness perspective. So, especially regarding wholesale. This will be the limit as you try to capture business opportunities. We say that and that versus usage. There could be some buffer, but taking into consideration the possibility of that buffer becoming tight, then it may be on the lower side.
A related point.
12.5%.
It's the midpoint of the range between 11% to 14%.
our evaluation of the level.
in terms of capital,
Capital will become slightly thin, so.
It probably thins the capital rather than being at the midpoint.
Set 1, the lower bound 11%.
It's difficult from the capital, soundness perspective.
so,
especially regarding wholesale.
This will be the limit as you try to capture business opportunities.
We say that and that versus usage.
There could be some buffer, but taking into consideration the possibility of that buffer becoming tight.
Hiroyuki Moriuchi: So is it too low so much so that it would be difficult to return benefits to the shareholders? No, not that level, but it may be slightly lower than the midpoint.
Then it may be on the lower side, so,
Is it too low? So much so that it would be difficult to reach and would provide benefits to the shareholders? No, not at that level.
Hiroyuki Moriuchi: Thank you. And again, this is the CFO speaking regarding Macquarie. Do we have some updates?
But it may be slightly lower than the midpoint. Thank you.
And again, this is a CFO speaking regarding McCrory.
Do we have some updates?
Hiroyuki Moriuchi: The original plan was to close by end of December at the moment. Each country's regulatory authorities... are being approached and we're in the filing process towards closing and also by them coming into our group. There would have to be some linkage with the functions like IT, and also they have to be booked into our accounting system, so consolidation system has to be worked out, and we are currently conducting discussions with our counterparties, and these consultations are proceeding extremely smoothly, so at this stage.
The original plan was to close by the end of December at the moment.
Each country's regulatory authorities.
are being approached and/or in the filing process towards closing and also
Buy them coming into our group.
There would have to be some linkage with the functions like it, and also they have to be booked into our accounting system. So, a consolidation system has to be worked out, and we are currently conducting discussions with our counterparties. These consultations are proceeding extremely smoothly. So, at this...
Hiroyuki Moriuchi: Are there any critical issues that would hinder closing? No, for the time being, there appears to be no such issues.
Stage.
Hiroyuki Moriuchi: And regarding profit contribution intangibles, there's the NDA that we have signed. So until closing, it's difficult for us to comment further on the level. Thank you. Thank you very much.
Are there any critical issues that would hinder closing? For the time being, there appears to be no such issues regarding profit contribution.
Intangibles.
There's the NDA that we have signed, so until closing, it's difficult for us to comment further on the level. Thank you.
Hiroyuki Moriuchi: This is Muraki speaking. On the first point, you want to increase Set 1. In other words, you want to raise it to the Higher Level of the Range but Risk Asset, Macquarie Asset Management Credit risk increased due to the agreement you reached. Market risk has increased, but. Considering your current market operations, RWA, market operations RWA is about to increase.
Thank you very much.
This is muraki speaking.
On the first point, you want to increase it by 1. In other words, you want to raise it to the...
higher level of the range, but risk asset McCrory Asset Management.
Credit risk increased due to the agreement. You reached.
Market risk has increased but
Hiroyuki Moriuchi: In June, do you think that there has been increase in this quarter? What do you think about the trend in risk-weighted assets? Thank you. Thank you for the question.
Considering your current market operations, RWA market operations are about to increase.
In June, do you think that there has been an increase in this?
Quarter. What do you think about the trend in risk-weighted assets?
Thank you.
Hiroyuki Moriuchi: This is the CFO speaking. Why is RWA increasing in the market? The current business In the current business, exposure is increasing in some areas, and that's being reflected in global markets and in investment banking, especially the global markets. Pipeline and Activity and Opportunities. have become quite visible. So within our company, we are struggling to do the management of financial resources. But There is a high performance and RWA. may increase but it's increased to a certain level so we may have to manage more stringently. Thank you. Thank you very much for your response.
Thank you for the question. This is the CFO speaking.
Why is RWA increasing in the market?
1, the current business.
Exposure is increasing in some areas, and that's being reflected.
In global markets and in investment banking, especially the global markets, but...
Pipeline and activity and opportunities.
Have become quite visible. So,
Within our company, we are struggling to do the management of financial resources, but
There is a high performance and RWA.
It may increase, but it's increased to a certain level. So we may have to manage more stringently.
Thank you.
Thank you very much for your response.
Sato: The next question comes from... JPMorgan Securities, Sato-san. Sato-san, please go ahead. I am Sato from JPMorgan Securities. It's a simple confirmation. Firstly... in the first quarter. You have the special factors related to the 2.7 billion, related to acquisition of Macquarie business and the compensation for the damage, 6.6 billion. So, what is, how are you reflecting these factors into different segments?
The next question comes from.
JP Morgan Securities: Satan, please go ahead.
I am subtle from JP Morgan Securities. It's a simple confirmation, firstly.
In the first quarter.
You had special factors related to the $2.7 billion acquisition of Mari, a business, and the compensation for the damage of $6.6 billion.
Hiroyuki Moriuchi: And second point is regarding investment management, especially ETF, outflow. 670 Billion Yen So has the situation already settled by the end of June? Thank you. Thank you for your questions. Regarding special factors, where in the segment are we booking them? As for sale of Takanawa facilities, it's in others, in-segment others. And as for Macquarie and fishing compensation, they are in the headquarters or corporate account. And your second question regarding outflow of ETF funds. By the end of June, the situation has settled down. In the first quarter. We have ETF outflow and our speculation is that it's due to the activities of certain investors which led to outflow.
So, what is how, what how are you reflecting these factors into different segments? And the second point is regarding investment management, especially ETFs.
Outflow.
670 billion yen.
So her situation was already settled by the end of June.
Thank you.
Thank you for your questions. Regarding special factors, where in the segment we are booking them as for sale of Toca or facilities, it's in others in segments, others, and as for Mari and fishing compensation.
Uh, they are in the headquarters of the corporate account.
And your second question regarding outflow of ETF funds.
By the end of June, the situation has settled down.
In the first quarter.
Hiroyuki Moriuchi: So excluding the activities of specific investors, the situation would have been stable. Thank you.
We had ETF outflow, and our speculation is that it's due to the activities of certain investors, which led to the outflow. So, excluding the activities of specific investors, the situation would have been.
Stable.
Hiroyuki Moriuchi: Then page eight of the material, investment management. Cost? The cost on a YOY basis, or Q on Q basis, cost has slightly gone up. Is it, if the increase is not due to special factors, what's the reason for the cost increase? Thank you. Nomura Hldgs, Nomura Capital Partners, Investment Performance, Nomura Hldgs, Nomura Capital Partners, Linked compensation increased somewhat. That's another reason. Understood. Thank you very much.
Thank you. Then, page 8 of the material investment management.
Cost.
The cost on a year-over-year basis and a quarter-over-quarter basis has slightly gone up. Is it so if the increase is not due to special factors? What's the reason for the cost increase?
Thank you.
Regarding year-over-year (YoY), the personnel cost increased, and the performance-linked bonus increased for one thing. Also, normal capital partners, uh, investment performance.
Linked compensation increased significantly; that's another reason.
Understood, thank you very much.
Nagasaka: The next question is by Morgan Stanley, MUFG Securities, Nagasaka-san. Nagasaka-san, please go ahead. Nagasaka of Morgan Stanley and MUSC Securities.
The next question is by Morgan Stanley, MUFG Security's Nagasaka.
Please go ahead.
Nagasaka: Thank you very much for the presentation on client sentiment. I have two questions on Investment Banking Division and Web Management Division. Regarding investment banking, if we look at the results of American banks in the April-June quarter, they have drawn bright pictures regarding their guidance and engagement with clients is becoming more active. Those are some of the comments issued by American banks. Regarding Nomura, are you seeing recovery of corporate sentiments and more engagement with corporate customers? You said that the pipeline is full, which we understand, but including the outlook, what do you think about the posture of the corporate sector?
Thank you very much for the presentation on client sentiment.
I have.
If we look at the results of American banks,
In the April-June quarter, they have dropped, right? Pictures regarding their guidance and engagement with clients are becoming more active. Those are some of the comments issued by American banks regarding Nomura.
Nagasaka: Have you seen change or any other uniqueness in Japan? Can we still expect a stable deal completion in the Japanese market?
Are you seeing recovery of corporate sentiments and more engagement with corporate customers? You said that the pipeline is full, which we understand. But including the outlook, what do you think about the posture of the corporate sector? Have you seen change or any other uniqueness in Japan?
Nagasaka: Next on World Management. The recurring assets net increase since... July, but Do you think that the customer behavior has changed when the market is down or even in the midst of uncertainties, do you think that the investment appetite has remained strong? Have you felt any changes in the client posture?
Can we still expect a stable deal completion in the Japanese market next on world management?
The recurring assets, net increase since July.
but,
Do you think that customer behavior has changed when the market is down or even in the midst of uncertainties? Do you think that the investment appetite?
Hiroyuki Moriuchi: This is a CFO speaking. Thank you for your questions. The first question regarding the client sentiments and especially on investment banking. First, if we compare Japan and overseas, regarding Japan, There are slightly different behaviors in comparison to other markets. We feel so in the past couple of years. On a continuous basis, the demand seems to have been quite high regarding activities. Corporate Governance Code, Stewardship Code, was adopted a few years ago and close to 10 years have passed and in the recent one or two years we have seen quite Strong enthusiasm amongst the corporate sector.
Has remained strong. Have you felt any changes in the client posture?
This is a CFO speaking. Thank you for your questions on the first question regarding client sentiments, and especially on investment banking first. If we compare Japan and overseas regarding Japan,
There are slightly different behaviors.
in comparison to other markets,
We feel so in the past couple of years.
On a continuous basis, the demand seemed to have been quite high regarding activities.
Corporate governance. Courts. Stewardship code.
Was adopted a few years ago, and close to 10 years have passed.
And in the recent 1 or 2 years, we have seen quite
strong.
Hiroyuki Moriuchi: In other words, they think that they need to take action. So this may be unique to Japan, different from overseas markets. And on the other hand, regarding overseas markets, after the Trump tariff news, there had been some delays to deals, and we were no exception. But that kind of delay has become stabilized. So, it may be correct to say that the sentiment is improving, but in terms of pipeline increasing, I think the signs are brighter.
Enthusiasm amongst the corporate sector. In other words, they think that they need to take action.
So, this may be unique to Japan, different from overseas markets. On the other hand, regarding the overseas market, after the Trump tariff news, there had been some delays to deals, and we were no exception.
But that kind of delay has become.
Stabilized.
So, we can't. It may be correct to say that the sentiment is improving, but in terms of pipeline increasing, I think the signs are brighter.
and,
Hiroyuki Moriuchi: in the Work Management Division. Regarding web management in April. There was a market shock and There were some clients who took the wait-and-see attitude, but in April, May, and June... Unknown Attendee, Mia Nagasaka, Christopher Willcox, Shinichi Okada, Nomura Hldgsaka, Investors remain calm and Literacy amongst the clients has improved and are expecting that they will become even mature as investors. Thank you. Thank you very much for those responses.
In the wealth management division.
Regarding wealth management in April.
There was a market shock and
There were some clients who took the wait-and-see attitude, but in...
April, May and June.
Flow revenues were found.
But because the shock was quite significant to a certain extent, clients took the sidelines, but it didn't go as far as going into panic status. So, in that sense,
Investors remain calm.
and,
Literacy amongst the clients has improved and...
We?
Are you expecting that they will become even more mature as investors? Thank you.
Thank you very much for those responses.
Otsuka: If you have a question, press SHARP7. The next person asking the question is ACBI Securities' Otsuka-san.
If you have a question, press #7.
Otsuka: Otsuka-san, please go ahead. I'm Otsuka from SBI Securities. Can you hear me? Yes. Thank you. This is Otsuka.
The next person asking the question is ACBI Securities, Oscarson.
oscarson, please go ahead.
ICA from SBI Securities. Can you hear me?
Yes.
Thank you.
Otsuka: I have two questions. First, regarding phishing scam. 6.6 billion yen that's the number you've talked about but according to media report the online securities and the face-to-face securities firms their responses are different online security firms they make compensation to cover 50 percent of loss Mostly, but in your case Is it one, some media reports that 100% of damage will be compensated for by Nomura, but what is your approach? Thank you. online security firms, well, they make a financial compensation to cover 50% of loss or damage. In our case, our approach is restitution. That's different from 100% financial compensation.
This is osca.
I have 2 questions first regarding phishing scam.
6.6 billion yen. That's the number you've talked about. But according to media reports, the responses from online security and face-to-face security firms are different. Online security firms make compensations to cover 50% of the loss.
Mostly. But in your case,
Is it 1, as some media reports said? 100% of damage will be compensated for by number. But what is your approach?
Thank you.
Online security firms. Well, they make
Hiroyuki Moriuchi: In other words, before the damage on clients, our approach is to bring everything back to the situation before the damage. So the restitution is our approach. So that's different from online brokers approaches. Okay, so it's not monetary compensation that you are making. Yes, exactly. So our basic approach is restitution, bringing the situation back to the previous state. And of course, regarding the suffered by clients, and depending on the specific situations, it is not that we apply the same restitution approach. all the time. So it is possible that on a case-by-case basis we consider the monetary compensation, but the basic stance or approach is to restore the situation back to the previous state.
a financial, uh, compensation to cover 50% of loss or damage in our case. Uh, our approach is restitution, that's different from the 100% financial compensation. In other words, uh, before the damage on our clients, our approach is to bring everything back to the situation before the damage. So the restitution is our approach so that's different from online brokers.
Approaches. Okay? So it's not monetary compensation that you are making. Yes, exactly. So our basic approach is restitution, bringing the situation back to the previous state and, of course, regarding the damage suffered by clients. Depending on the specific situations, it is not that we apply the same restitution approach.
Otsuka: Thank you very much.
Hiroyuki Moriuchi: My second question is about the policy holding sale and your revenue. So there is, I do not find carved out numbers, so it may be difficult for you to answer, but global markets, equity execution, and investment banking. Those are the areas where we see the numbers, but Nomura's securities stand alone numbers such as trading securities and the underwriting of securities in the first quarter there seems to be a slowdown from last year. Is it the right understanding? That's my second question. Thank you for your question regarding the sale of policy holdings. As you say, global markets sell over securities through block trade or that kind of opportunity, or the offering by investment banking such as EBB, so that kind of ECM and transactions would another approach.
All the time. So, it is possible that on a case-by-case basis, we consider the monetary compensation, but the basic stance or approach is to restore the situation back to the previous state. Thank you very much. My second question is about the policy holding.
Sale, and your Revenue.
So there is a, uh, I do not find carved-out numbers. So, uh, it may be difficult for you to answer, but global markets equity, execution, and investment banking.
Uh, those are the areas where we see the numbers, but numerous securities, standalone numbers such as trading.
Securities and the underwriting of securities in the first quarter show a slowdown compared to last year. Is that the correct understanding?
That's my second question.
Thank you for your question regarding the sale of policy holdings.
As you say, global markets are stale over.
Hiroyuki Moriuchi: But as you say, the last year or two, we have had a high level of activities related to policy holdings of shares, but pace of activity is slowing down, even though our activities will not come down to zero, but we expect normalization of pace of our holding related activities.
Securities through block trades or that kind of opportunity, or the offering by investment banking, such as EBB, so that kind of ECM and transactions will be another approach.
But, as you say, over the last year or two, we have had a high level of activity related to policy holdings of shares. However, the pace of activity is slowing down, even though...
Hiroyuki Moriuchi: Okay, then thank you.
Hiroyuki Moriuchi: Then in investment banking, you have mentioned pipelines and deals. If anything, you are referring to the advisory side of business. Yes, Moriuchi speaking. In IB, are we for C pipeline in IB, in the area of M&A advisory? For DCM, we have a certain level of strength. On the other hand, for ECM this year, last year's activity was at quite a high level, so we see slowness with ECM this year. Okay, understood.
Our activities will not come down to zero, but we expect normalization of the pace of our policy while holding related activities. Okay? Then, thank you. In Investment Banking, you have mentioned pipelines and deals.
If anything, you are referring to the advisory side of business.
Yes, more. Which is speaking in IB. Are we for C pipeline in IB in the area of mandate advisory?
For DCM, we have a certain level of strength.
Hiroyuki Moriuchi: Thank you very much for your explanation.
On the other hand, for ECM this year, last year's activity was quite at a high level. So, we see slowness with ECM this year.
Okay, understood. Thank you very much for your explanation.
Operator: If you have a question, press SHARP7. As there is no more questions...
If you have a question, press #7.
Operator: We'd like to conclude question and answer session.
As there are no more questions.
Hiroyuki Moriuchi: Now, we'd like to make closing address by Nomura Hldgs. Thank you very much for joining us. This was the first session for me. to speak to the analysts. In future quarterly results announcements and in various other activities, we will be depending on your great support. We will be working hard, I will be working hard, so I solicit your continued support. Thank you very much.
We'd like to conclude the question and answer session.
Now, we'd like to make the closing address by number Holdings.
Thank you very much for joining us.
This was the first session for me.
To speak to the analysts.
In the future, quarterly results announcements and various other activities.
Uh, we will be depending on your great support. We will be working hard. I will be working hard, so I solicit your continued support. Thank you very much.
Operator: Thank you for taking your time, and that concludes today's conference call. You may now disconnect your lines. The host has placed this conference on hold.
Thank you for taking your time, and that concludes today's conference call.
You may now disconnect your lines.
The host has placed this conference on hold.