Nomura (NMR) 30 Oct 212022 Q2 Earnings call transcript

Good evening. This is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the first half and second quarter of the fiscal year ending March 2022, using the document titled Consolidated Results of Operations. Please turn to Page 2 for an overview of the first half. Firm-wide net revenue declined 19% year-on-year to ¥672.1 billion. was to down ¥XX.X taxes income while income XX% declined billion. before ¥XX XX%, billion, net Income There are two the previous main reasons why earnings year. declined from

loss First, ¥XX.X the first we an in quarter, billion. additional booked of

our wholesale we bottom completed right. on year. positions transactions March As in business U.S. included segment unwinding in in May, client is the the related our to with in This shown this results

We ¥XX booked the The related a for XXXX segment, second factor in in of is to legal before financial transactions second legacy Other. quarter from the billion in to costs XXXX. Americas crisis provision the global in

growth With is trusts still look rising discretionary posted at backdrop, business this resulted details and with at factors billion. let’s recurring segment revenue year-on-year discuss of the the together sale before strong unchanged before income results. roughly of stocks on billion. this. investment in remained billion. the a As ¥XX.X of income ¥XX slowed, taxes that we Investment of impact taxes income Management these but ongoing, now Both from total income client assets. commissions Retail in trust cannot investment ¥XXX to around growth Brokerage increased investment and

were billion and products in Banking a period per last impacted of booked billion. and of performance is increase a rates XX% ¥XX ¥XX billion. mentioned. to the This back as and in a as Investment Assets overview half FX by posted just for a was due billion, emerging, were income revenues strong loss posted particularly concludes year excluding about such to before income while by taxes ¥XX.X company. the taxes provision investee declined pretax ECM. dividend in income of ¥X.X I the macro I business under strong, income before ¥XX.X first Even particularly mainly mentioned. billion year. loss Wholesale loss due which of Today, Other of listing of of this to slowdown by million the management investment ¥XX continued the on climb as shareholders results strong Wholesale driven increased, additional the our revenue gain loss of M&A Segment share September. a rallied in ¥XXX of results. fixed announced last market end the same That the record we an

ensure declined impact from deliver XX% wholesale launched will income XXXX. last legal and XX limit the quarter billion results. shares ¥XX.X total The which the turn total with to U.S. XXXX of and will longer quarter-on-quarter of for improved XX% Income a compensation. and of upper buyback a program limit policy second to capital upper also We XX, million will for be capital as from Please to March value to shares share management program raise for X XX, efficiency an stock-based flexible overview The Page before be run to ¥XX loss billion. included provision was ¥XX.X transactions income includes Firm-wide before our present. in Other, three billion, ¥XX income billion businesses taxes from billion. due core no pretax quarter ¥XX a the This taxes client as expenses. performance up to from a segment November

line the X.X%. net and bottom billion Unfortunately, in income quarter. this the was ROE in ¥X.X our Americas significantly billion, impacted quarter Second ¥XX was provision

and through market bonds X uncertainty Page ¥XX.X of persisted billion, business, for investment to July revenue as turn August, declined. results with please secondary Now brokerage commissions by stocks, into sales and Net Retail. from overview starting of was an trusts

were XX% increased, performance remaining unusually over income low. taxes a before resulting when turn primary billion, was contributions and roughly flat revenue stocks of Page key recurring costs on X ¥XX Income update for from an both Please quarter-on-quarter. indicators. decline revenues in last to However, quarter

business to our are steps grow to the over of medium number long taking term. a We Retail

assets inflows declined a On monthly and expenses. and helped we the inflows for the from of by ongoing last and the Consulting-related Please billion, left improvement Management. estate-related billion, XXXX top billion, an net to revenues XX% revenue X billion XX% derived right, from before taxes recurring shown booked representing for ¥XX.X last from contribution you billion, are ¥XX.X record income Recurring the quarter-on-quarter in target our XX% KPI of turn Net down on lift Partners can of Investment reach see This of net business to from accounting Investment annuities. trillion, of total to real representing track of high driven since Nomura retail of revenue inflows XX% quarter, over bottom was April. and Trust of to continued March revenue buildup trillion. investment discretionary we ¥XX ¥XX.X Page net when Capital ¥X.X has assets investee ¥XX.X recurring ¥XX ¥XX was was ¥XX.X listing quarter, billion company. billion. a Income

uplift gain/loss assets management our reached results Management a business remains Asset on slowed That and of present American Business solid. declined. And record billion. under high as shown as the and trillion. that bottom this grew ¥XX.X Century ¥XX.X said, was quarter This to revenue not quarter’s left, Investments X% related

X. market by inflows shown factors management as lifted Page on were under Assets and

saw trust to portion billion quarter, bottom on investment on dark The international left core graph international and than the investment in to seen and the over from alone. ¥X.X Please in markets, alternative business last international This fixed and from Advisory Page total into trillion private reaching to investment The management the turn of ¥XXX billion inflows under assets well-performing regional steadily, at grow year, a channel we In top income stood funds. particularly business, the ¥X increased billion ¥X billion. Inflows right, which from gives inflows trillion, ¥XXX business, management Japan ¥XXX continued is of were breakdown Investment Net trillion, ¥XXX.X bank’s XX the assets ¥XXX under billion. taxes last the Investment the showing ¥XX.X inflows. the reported the the shown to billion last billion. businesses. with advisory Wholesale. quarter banks with red related impacted via and XX% from more to revenue income before business billion quarter ¥XX the loss inflows ¥XXX of inflows as Trust improved trust was transaction inflows the for comes In of a income by The improvement and ¥XXX client. comprising billion increased solid U.S.

loss impact left. banking roughly on Japan’s at income. revenue not Looking slowdown region The quarter of from this improved remained quarter. was as present offset a equities by the bottom and the unchanged last revenues Americas fixed as net the in investment

while business slowed with in Markets. businesses, securitized rates driven overview line, EMEA products. Asia Global reported revenues stronger an and fixed Please turn to starting by for across by revenues income Page all XX

emerging credit AEJ increased. but revenues such both in included ¥XX.X revenue products lower jumped billion, because Q-on-Q billion Second to last client loss the a Japan were increased as Equities and Japan activity. rates billion. ¥XX.X the on macro as quarter Fixed AEJ declined XX% net markets FX and had Markets revenue last quarter quarter ¥XXX.X Global XX% income quarter, and solid to X.Xx revenues from and

right find regional You page. the this highlights will on also of

billion. multiple deals to the another had for was ¥XX.X in sustainability-related M&A us at a Page now while the fourth billion. good straight ECM Firm-wide revenues XX% M&A the Notably, and quarter non-interest other strong expenses. XX well supporting green Internationally, in of to Turning Page as shown offering with costs overview Japan Wolfe strong bottom, business Japan strong of Please a and mandates the expenses executing turn X% on mandates. for West and Railway quarter, such EMEA, the contributed Research as Banking, as ECM to to billion. shown follow-on the win XX remained right our collaborations global transactions. second an The Investment Solutions cross-border top Q-on-Q Americas by increased row Americas had increased revenues. for in on deals the to from quarter, ¥XXX.X helped a ¥XX.X number

Compensation provision lower in loss not a pay of performance. with year ¥XXX.X booked billion we this quarter, provisions last to earlier. due While was line billion, benefits X% billion ¥XX the discussed for and present to ¥X.X provision I bonus as loan booked declined

bottom with our June financial capital XX, ratio Page shown our on no from ratio concludes as our capital quarter and CETX at X position results. is there second real position the Tier left, That at on the Next, September of our financial to and discussion XX.X%. XX.X% change

trusts investment businesses, bottom and into included discretionary a financial unfortunately to At results provision our booked October. recurring quarter’s and an the inflows in net recurring record our before hit legacy Retail same global high have transactions investments by line saw from for impact time, This into crisis. assets revenue continued core the and

But to of to traction also our steady of to who wholesale, and are with the retirement. in to record business. a business we environment. get management investment Greentech start lifetime under clients Jeffrey faced remaining see advisory contact revenues elevated revenues services are important a banks, holds in Banking. XXs macro bank’s Our assets its saw Investment have environment rates. remote Co-Head currently age challenging DC market Investment for advantage event or Founder ongoing – age products, a recently in we business, reported clearer, broader achieving as Investment the strategically McDermott, banking quarters. fixed from the Management becomes deliver, gain channel, appointed expect four macro October business the who and at asset In to working participant as is working faced Global a consulting competitive regional with where the center off of market inflows management primarily lifting growth big activity pick and their starting Capital currently We high slow up. across started XXs straight income for wholesale

mix advisory addition in further ahead, enhance risk we in and to and strengthen secondary Today, we initiatives sustainability-related Looking announced diversify will revenues. business, revenue businesses our more our management. to also strength our consistent to deliver our

we Risk a this, we our of our At a main to have Based consisting Following points. initiatives Committee enhance Board the Board level, been in outside mainly incident U.S., management. of the management. review three of conducted This risk comprehensive directors. on implementing we consists risk established the

Committee aim for Thank execution realigned management. enhance very the of Risk committees our On our achieve enhancement to risk the Group working you while We hard and Steering and sustainable risk to Management we much. growth a Committee created management. side,

please. Muraki SMBC This questions, Two from Nikko Hello. is Securities.

several First, the have provision global been regarding while yen the financial future booking booking pretty been it’s half, has legal are the maximum half, first And a ¥XX since of way of probable so quite or And out. of peaked or your billion, August of these risk the second believe I amount? you of as there much believe. other exceeds billion outlook provisions is What about billions the cases. some the provisions provisions but year, I ¥XX further Is reserve you litigation crisis, billion, last believe about provisions? loss, it I losses XX, other which in issues, expected to calculated think that ¥XX consecutively.

some do of expected this? future you losses risk? your choose total the your do Thank to contingencies, did XXX% I profit your you sure announced payout? feel And definition from you question capital this your some how capital And second we you time, of there you. but ¥XX future in XXX%. how such exceed Why are payout? this as billion allows your outside, income change my Did buyback, for you make view is the So, ratio, there And and can is or which the you regarding share XXX%, strategy. abundant payout am estimate to

Kitamura. is This you. Thank

the like it’s comment. provisions. to possibilities, but while say we issue point today about this. don’t can And is first ago, think the I do we provisions I And as is in future right made frankly, – an place this what make Your necessary yes, which that took the to provision, a now, of have quite future appropriate have

globally. business we have And made provisions need So, today. but as we it of we for do disappointing that us, conduct the is

So, litigation risk Japan. – cannot completely mitigate we outside there is of

possible And through that the On business as reduce business conducting like reduce by And appropriate cases other as conducting litigation these future is would can as the announced, management. much to the are we it risk. we enhancing appropriately, future. risk hand, the in we our

the as pointed Your policy there and payout believe, share second XXX%. capital – that or you buyback In of we about the and question whether to we you total announcement factored the we client will from out, a was incident I asked asked the dividend our – extent. payout? dividend yes, were the ratio are incident results consider U.S. into the we certain above said And being the losses about it previous

we the of buyback to option. payout made are income, So we RSU calculation. use which adjustments some And the the some to stock our we the share have or use going for for

So total have for the XXX.X% very the on we excess in said question the some the terms yes, moment, is income And about to the payout I we adjustments that made we At high. of And XXX.X%. surface, use above your payout capital? ratio whether calculation. – have that

the if X%. financial said we gone And the So here – was today, level. will and yes, we assumptions, have – on sheet JFSA from be from FRTB we industry. the discussions will up an sufficient of impact are balance the And is issue. have our the impact, the excess And believe position to off businesses submitted and announced that slightly as as current has the of kick the FRTB, make as that I the in there and do we some reviews somewhat X% opinions from past to the related. or And order conducting we here. plans control I based from explaining mitigation the that some FRTB key current said, have announcement for impact we That, been made Meanwhile, from capital.

control So I can impact believe a we certain extent. the to

as Thank remains somewhat we capital outlook have of or do the So unclear, today, in but our room capital. you. excess

exceeding announcement X the there this? for is items. the was JFSA, there the a and was the the impact these is understand This Muraki. risk, and X revision market second In mainly credit Thank your or risk – risk. point. by market X way X to second about you. of CVA proposed About Is to But to that

The the Nomura. be the market Yes. correct. of the portion. impact And impact to correlation, – is large has there biggest – because that’s Kitamura, this risk this is because will no risk market

Understood. Thank you.

This two is have I Watanabe questions. from Daiwa.

question and composition about fixed XX. about in client global markets, is the of flow question First is And the Page equity quarter? second what’s and revenue. trading Second

rise. It is rate, Regarding which cost on run ratio of Thank above cost/income rate XX% terms the run the But that cost was is what level is appears fixed XX%, wholesale, in you. in target. QX? the of

Thank you very much for Kitamura. the question. This is

revenue XX% income wholesale fixed the Partially equity, second speaking, – or and trading revenue Then cost revenue I income revenue XX%. ratio XX%. XX%. income split Firstly, revenue, pointed put applying you remaining we equity, as should to representing is and fixed looks trading for your income, client to roughly question, fixed XX% divisions risk cost. out. and both are high, how it, Cost control. Client It

AEJ. in growth areas, advisory in business area, also area, hand, other the areas, On Wealth Asia, growth making in words, we other Management also those investment. are In private

the secondary making advance cost we incurred, while is being normalized. So – are spending being trading investment is and revenue

as the high a a result, cost result. As appears

in reduction has billion promised, been ¥X we cost as wholesale However, completed.

on of revenue. we income billion, if be PTI able the ¥XXX In this will of Moving target focus to then we cost can forward, context, achieve ratio. achieve we will growing

peers? is with of trend My background? question revenue business? your it what’s shrinking the seems – What Is your equity follow-up compared And regarding the brokerage weak, back revenue. scale impact is shrinkage but from coming prime level the U.S.

Thank you very the question. for much

– weak has this our impression understanding. performed is that’s is seems be not equity your our impression. to Equity our business but that That’s So Kitamura, solidly.

there speaking. not mainstay looks out, Equity cash well stock believe multiple and I is released results. derivative equity business prices, As to IPOs the trading good contributed them. and U.S. derivatives weaker business, do also with increase our you pointed relatively peers But were in

the view all. from upon touched not impact at our you. prime but you that’s brokerage, Thank So potential

Thank you for explanation. your very much clear

is Thank Tsujino. you. This

– First and July, of all, And there Investment September September, the of growth, figures recovery. weak. in Trust Japan, much the wasn’t growth September, sales monthly was August but a there was positive that

in you with this? your the is the – price is compared the if – your about are compare And we to of because assets a have – of you October, a what rise the to client rise. and but X your mentioned sales past. momentum And in growing, seem past year pricing terms over it So lost AUM peers, or how there thoughts

in And leading the you September what in increase please? today? So sales that’s my explain actual and sales point. Could was trend, to the first

Second, was financial the the so disclosure, provision find which declining is QX ¥XX ¥XX – this in numbers. ¥XX sorry, And the not? give does loss, maximum And disclosed realized out provision kind end billion? before, it of this which disclosure losses, quarterly from March end, is billion But this which these in information as to August more to increase increase? we billion-or-so not billion reflect – August, have – is the wait does billion something you of on or YUHO please? June ¥XX of Or disclosure, the you color disclosure. that, ¥XX me And ¥XX is June number about this billion the end. expected these as Could new until this or the middle by

Thank you. This Kitamura. is

first also But And are it’s portfolio with Your asset and sales, Investment think Nomura, management I to appropriate point management. also compare we promoting the promoting don’t about the our frankly, mid we are peers. our as the And gold-based at Trust this, in clients been long-term to fees. the our asset fees are order business, recurring we on – consulting several times we from to trading, of to contribute do to to assets instead focusing of have explaining past. shifting ownership

focusing of on exactly sales the does in this the now market. we business. business, And quarter not of this per Trust client-focused Investment trends X-year the the So in match are type

increasing, XX% since continued this client improving. clients’ own at or an unrealized to valuation And growth And recovered. was more average by of the September, gain in the year, in the their in satisfaction than around XX% become mid or them long-term. gains gain there gives And last And rise. market assets for has to last this June, the gain. And unrealized is or norm Nomura. June So an to the unrealized assets our over incentive our

investment hand, valuation the declining moment. assets the kind to in choose needs talked risen, when unrealized – I the in asset’s switching switching XX% the to the unrealized In because the their increase between correlation the has anymore. you unrealized was And past, the and gain of correlation unrealized to But cash. so rise clients between it or proportion the prices On Trust increases, the of And trust in gain is have there an at convert or that gains. gain. sell some gain the recently, Investment about disappeared. is There no other and

that So right us a is customers investment we also the at want And and are customers assets trust because use now, explained, the to the investment a if there of way strong that I clients, we for the just pursuing clients’ this making to more is not more and numbers your booked unrealized need do rate to generated, area, but we client as then investment the switching maybe gain their are that’s And we hand if trust their of satisfied true. not just change peers. the has manage. face is But – in put rising, We being that is investment but fallen. money this want the with customers customers to that us trust, been investment in has unrealized sell is are is point work in really for unrealized not and are that to as this as other gain accounts. gains their we we trust And into our the the more Yes, be our true, sale, trust-related figures. moment. but to do our as background

we a individual the in was it about included provision billion, if situation probable we in in provision, when and case, rational And case Tsujino-san, there the expect we the the time, cannot reason but stated calculated, amount was loss this each of and billion you to case, as the can there rationally we the for be is a in loss whether the mentioned, probable go and ¥XX maximum which into until disclosed in about disclosure, disclosure. that disclosed not, the we maximum after that And point, logically calculate second or today. The detail not loss was YUHO progress loss ¥XX QX, of the included. terms this made

this next included little number So a And booked loss and the in and would about probable other of Well, provision. we as maximum to will in ask to included problem November not will you longer. your wait QX, loss, point was announce as we that you. the number which be that. the Thank for the maximum was like whether in

Understood. Thank you.

JPMorgan you. This Securities. from Otsuka Thank is

So answer – after – my a ask I could every question question you right question.

including So half. first return. shareholder buyback the in I question, you – the first would the about ask you ask to like

profit a not of billion earlier, So net ¥XX.X was used.

adjustment some made. was So

But the it to on ratio upon looks on buyback. we different. the profit if total payout calculation payout ¥XX, then be you make did from a you the dividend? decision ¥XX appears do So the based in So billion back determined seems that, – And basis threshold. or what this ratio

to answer. thinking not difficult is far that’s your question a It’s But Otsuka, Mr. the speaking. Kitamura mark. off

Kitamura-san is and Then, U.S. second as also the in to this the quarter. due down explained, incident provision booked the profit is

kind means profit. of suppressed factors. those are inflated they But then two excluding incidents those because So is ¥XX.X not are the billion that you subtracted, two

that related But factors previous difficult included. will lot extent, say about to which a done that, in but we the To incident the I It’s and we’ve some extent, the this, so. I IR precisely talked conference, a said consider U.S. telephone in to to certain are not

seems profit wholesale regarding division’s in you profit And the question, But question cost underlying this segment is time. Thank billion for that segment ¥XX second The intention explain as of billion, My the as low. explained, seems the ¥XX you. profitability quarter, you of second quarter, retail the Mr. is could profit. in explained Kitamura, that my end initial you high profit? second

second they elevated So it temporary is or in levels is the – level run-rate quarter? the it are – temporarily

This is In you. macro that this to back But looking speaking. at second second second the Thank difficult quarter a feeling is about because weak How my numbers situation, you quarter, seasonality do quarter think summer. tends Kitamura business, question. is has ¥billion have of have in was quite this billion macro from not profit about was bottom situation, product wholesale. is wholesale your business second the challenged quarter. line secured number, for which of In done. perspective, ¥XX commendable we That means

We Macro to seeing actions persist secure have will that. product environment not we are forever. today taken that

as So, as we back, well. client expecting activities come are to environment macro the recover

we wholesale. optimism that level our can certain have in So, of expectation sense, towards

As approach. And for factor first the overstretched as expense higher. of at are taking personnel But a second the in technical looks the level quarter, result, a in expense when low we was to the the related booked. not expense was retail division, ratio quarter,

we bottom vacation, to line what at We had secure are asked Games, of clients July number. could are Ms. August earlier, And come business. customer this center summer Tsujino And were Olympic have slow. quite Still, we profit. the doing then and placing we activities this we our in and as

secure the we are profit. we again, That’s would at Still, look – and far-fetched that bottom how not could reiterate approach. a to this taking line number. point So I like this we

months last the three Thank going Mr. wholesale, is you. billion. cost Then ¥XXX to Kitamura, back

cost should pay this run chunk revenue expect performance, increases, if run due then seen cost? we kind of of as this level from for goes rate but course, Of also up, outside, rate to

Kitamura speaking.

for quarter, as is increased wholesale, investment. that pay benchmark the the top ratio quarter. in result, are down. costs well, the grows quite income seeing areas And But I as of elevated. which with cost compared baseline performance, expense come or one area, sense, see surely first environment that line a we ratio as or our level be difficult As we in making due will mentioned, cost/income we In when growth in level now will But but was advance are level. second the to that’s

clear Mr. much explanation. you Thank very your Kitamura for

you. issue. management like about Niwa risk Thank Mr. would asset from from Citi. the and This I ask to the is business

to on there recurring-type this? while And and the is your is – the true? you when all, the of My dramatically quite behind relation are revenues? risk, your will costs, your issues tends And What Page is risks what First type with is what bottom profits am you revenue? think to you. is asset-building risks continue? have this that will to I trends past condition will X, do and the Thank about and control versus top you you between you the how products second how sure your say your And growing balance reforms? but considering products, shrink revenue? be line you your increased the for And taking will profits, in risk be proceed point

and are expertise investments Kitamura. our and careful the – also of customers, following on in amount in increase goal-based the the approach by the taking are market. have the understood the assets Tsujino-san to leading control absorbed assets investments. of total selling the And taking earlier, increasing, yes, revenue have working And recurring our partners. scope revenue discretionary been conducting being we and And of now believe. I the discretionary we our are this. the And they is asked that efforts, we fact as about we this have can volatility to – we able we and holistic results recurring this more the are we approach we now seeing – finally of the About Yes, is assets we of been follow-up reviewing to a the CIO using our a group And of customers. are against

and result is a it’s to believe of of the leading revenue buildup I the each recurring that these assets. efforts So, of

and much your sustainable. crisis But Nomura. long business, took the for our was like anything point, global I And there the very since to So, to an to on clients, means place very main disappointing as been how doing as are in going macro a I fixed I this that is related good X.X%, in QX, the our how and monitoring industry past, stakeholders. explaining not issue risk these I provision is And we regulations is cautiously. to forward. do crisis, versus objective. and we is the environment. to And from enhanced am revenue question which a resources, what’s this result. And took revenue are the earlier, this trading to And would its tightening believe I is this management, trading second which apologize risks believe whole provide the has I monitor liquidity believe reasonably we we and the was faced a taking including ago. the revenue market KPIs. explained at special, this And while the have the going tough place risk versus has been always And moment, risk-weighted – continue which financial asset personally, before will the of versus financial was or And – this

order and – to an And And for release, society. we risk Nomura while controlling to improve steadily will will further today, management. is this press risks. profitability improve announced in we our in we our grow help we our contribute even further want enriched as So, steadily to the enhance

it will mission. management. its We believe for Nomura fulfill our risk that enhance And we and sophisticate crucial is to

So, we very on resolution risk management. Thank you. will a strong move forward this with

if terms One your of initiatives. to follow-up showing on I comment could but peers, share, rising I market quite you retail, hard calculate your is know for the it’s understood But or falling, please? detail. share such that, question, in for your you Thank

about the they thing approached money XXs about roughly of for always analyst increasing well in in have growth talked group whole. up there the good actually, volume results people formation getting remote that the in their several is but statistics, terms clients this inflow, of for These to approach we industry finally contact center. contact Yes, seeing customers, retire. people are savings well. young the share centers I And form very believe this and account generations, customers active of of in. say or or Japanese active we look And investment but and Yes, the some active the the And in is age is Nomura. seems securities as a the see And – XXs too are net contact And group not, range so have and flowing which age Kitamura. by and at working But generations. the our peers is we whether very are continuing Nomura. in Nomura’s in old. the this the times terms rising people as this of conference, are people And starting don’t I in of the as X Japan If people and a But a these on zone. generation. in are be is to very is XXs trust, increase trust. being net channel their for The inflow years an people set in believe generation of of people ago. the is worked These in for are are And or are itself investment frankly, half, customers we we – their to or this it is who investing. a we interested our the XXs these center. decline wide

of the of we clear very it’s that the sorry, a recovering it fallen much. I think Nomura, do I And so you I it the has be in positively market. are believe should I that things or moment But share answer, cannot don’t but at in – it hope recovering. is feel terms moving give

you Thank very Understood. much.

is I This more one Tsujino. you. have question. Thank

overseas manner. fixed a amount, in significant as EMEA down is income, Regarding absolute

cannot heat clearly I Looking it. see the map, at

region. I is So to would and to the the as obtain see it the percentage the as we EMEA it declined then third EMEA. into can affecting do And quarter by is know the is by continue breakdown, or like issue EMEA what usual, third quarter, tell region, quarter not I Then, the negatively can that? the second reason we factors same for well? that why will greatly, reason in the Once specific the

This for you Thank your Kitamura. is question.

so. about than incomes’ has of biggest bit or XX% and has than revenue, has and XX% a EMEA Regarding more Americas the portion, remaining and XX% Japan XX% the fixed AEJ breakdown regional more

rough the split. So, that’s

As say, difficulty. you EMEA faced

at issuance of of are thing, was slowed that’s is EMEA, bond down we Every business. one there EGB in summertime, For what part a And central time year, And seasonality this government the year. factor. at. our good

So, it’s on to It’s sense, it to easing factor. global newly limited monetary not EGBs, horizon. Europe, in factor. The macro trading end that was the issued a of seasonal Also, there seems the a the bond but factor. In volume of trading was be was small.

interest new days, So, current to trying level hand. other inflation, the the market about be for is prolonged In this expressed been where interest the identify rates situation, of participants will That These are concerned on end situation. market has seems up. to the searching now rate.

got So, client are slow. primary seasonality, due bonds. investment secondary into situation, not investing this affected investors – In were many into and and activities long-dated trading to

fluctuate looking there, And some at to And identify interest haven’t consistency. – a little been news bit we curve of rates. the able yield

current the long the persist market, level. And will the speaking, issuance yield to extent, spread, come will to The to honestly So, spread not back normal long-dated certain the short-dated, normalized a environment a level. the back come will yield time.

continue our question? for situation So, that a That’s Did long the not assumption. summertime your will answer time.

Tsujino speaking.

back to So, Still, current level at XX% given the not quarters four up previous the quarters, will last four the what back level the go before. of the looking four current level situation? is of the about it was the past quarters,

year, Last of year, level last the enjoyed the market. of Kitamura speaking. we tailwind the

– year. faced challenging which to business the macro So, level rates expecting the rebound macro business, a faced or especially last for second But is not of quarter, business we us, the are situation. core it the

we So, to rates recover here. from expecting the are business

speaking. you much. Thank very Tsujino

is Thank This for Kitamura. you. Thank you today. very much participating

So, had for we our to this held these by provisions. we make was very issues us. And back were disappointing past and

been to However, in our the see past. the results of on we working we efforts have starting that are

we can as of our gains fruits well the is you as seeing expansion of very was And where in the wholesale, our extremely which we last past synergies to client our so, in of business. which And from management as the feel And the with well gradually U.S. a reduction shift our in to line. The have efforts we And efforts. as is results result are the the our of overseas as starting especially And earlier, billion business, are in I Greentech of Global result Jeff. half is client-focused. And and able a of clients. tough. Co-Head We mentioned M&A, Banking, Greentech, even we even environment, book the Investment of help macro consulting the Greentech, asset strengthened, were this – of environment as in we business of bottom unrealized appointed in can recurring revenue April. the acquired cost second believe the year. the ¥XX I last But of this this Founder we see this this

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