Nomura (NMR) 26 Apr 222022 Q4 Earnings call transcript

Good day, everyone, and welcome to today's Nomura Holdings Fourth Quarter and Full Year Operating Results for Fiscal Year ended March 2022 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.

During the presentation, all the telephone lines are placed for listen-only mode. The question-and-answer session will be held after the presentation. under telephone which certain risks, projections. performance, involve and or factors implied this other statements delays, expectations or that which other from other results control, the company projected known not materially achievement note of conference actual those to forward-looking contains and uncertainties, may the Please cause company's be results, different the by and performance, unknown results, of secondary factors security and liquidity Such size economic investor interest of of conditions, and valuation, timing transactions. and rate, level, events, political market, rates, include market conditions, number, expansion volatility and and sentiments, currency competitive that With conference. the to would we begin like Mr. Chief Kitamura, Officer. Takumi Financial Please go ahead.

our fourth XXXX using of fiscal Holdings. Kitamura, of Good evening. March now Takumi quarter year This turn the ended titled document I Nomura Operations. is page full year results Please of financial to for overview the and give Results Consolidated CFO of the will you an two.

the Bottom billion. breakdown The before before the let's X% income ¥XXX.X income become full Income taxes. First, right gives to bottom year taxes year-on-year. income revenue at left, was chart billion, X% period. of look declined down ¥X,XXX.X a net on

due divisions from Retail to growth geopolitical a line That Management policy, both XX% in flow stable heightened worsening and stocks of due waves to investment booked as such Investment in trusts. three said, reported the of bottom in factors. gain/loss market revenues. and in continued investment sales lifting traditional full we investments evolve This away business. segment a trusts third further Bank sentiment retail revenue. during last from ongoing This And to asset the to the investment consulting while and management. Retail saw inflows discretionary monetary weakened investor year, investment ¥XXX.X recurring and shows pandemic, securities The business into its shifts led revenues was billion, year billion. an Central segment to slowdown risks. business Other the ¥XX.X to improved to declined from the total mainly due to

revenue Management an and reached increase assets across reported in Investment under insurance from all in M&A. high We record inflows also December. a consulting-related four quarters management and booked

record annual As revenue past Banking the by of results full management year-end was in X% income ¥XX a six billion, ¥XXX the the year good Net was of a of year stronger This as takes particular, March. our to compared Wholesale business ROE In fees. reported of share end a EPS before. down years. increased, We revenues ¥XX had delivering was highest business, International driven the dividend and per announced in year-on-year. the per shareholders result, share. Investment ¥XX.XX for year for its to X.X%. dividend Advisory

quarter enhance a in shares for compensation. to results. In May to addition, limit an upper today, resolved of we capital million for our Please page shares up from buyback flexible to a share XX as March of three set equity policy as an The has efficiency fourth well year. next order and ¥XX and until XXth runs capital ensure the program also billion turn or end to allot overview program of

of our management. due before XX% gain As than right ¥XX.X previous investee the quarter-on-quarter, was ROE quarter. billion, was income was in the includes income shows last ¥XX.X sale ¥XX.X taxes Nomura fair market billion EPS Research value XX% companies income stock interest in the recently. Institute taxes rates activity This while investment in Segment heightened was and US mainly of ¥X.XX in shown top drop stake impacted decline on our down annualized billion, taxes net retail client ¥XX.X lower was to before rising income X.X%. and the the geopolitical three on before billion, billion, which decline ¥XX XX% which of bottom Other segment the right, risks, income income affiliate the quarter. on a income was the from The announced and

put In areas. we beneficiaries certain and global for fourth to others from to XXXX. second purchase direct our US And mortgage-backed to additional to the provision proactively in billion by behind in subsidiary before we in by loans XX-year negotiated from of dispute we the resolving claims us, our booked crisis, XXXX Americas resources the to quarter securities to by relation financial the in loans is to residential growth related expenses this to issue ¥XX addition, have in over the issued This management quarter. booked the transactions trust relation

third With booked this depending that on completed ¥XX loss quarter issue expenses line and the these treatment the the quarter, loss, additional the means of have reasonably legacy possible a drawn billion, mostly transactions. accounting around the in exchange this which expense billion have the Booking additional is from rate. provisions, to under maximum ¥XXX we declines the maximum exceeding

year-end of dividend XX%, dividend than gives payout of policy XX%. significantly our ¥XX Our a dividend higher is of ratio which

investment and halt, Retail Income down dip, beginning worsened investors ¥X.X to treatment and nearly stocks market legacy The fourth to for in of of adjustments table some last focus. our geopolitical ¥XXX around of right in billion inflows recurring year a and from sentiment to resulting our levels shows areas made revenue page heightened year-on-year, saw up as stable Investment holistic to also to high February net and a main the and quarter, the overview The particularly services in we the income discretionary was of increased revenue investment to asset have the billion. a revenue in XX% number growth declined Full M&A challenging billion, net page we assets in shareholder Please underscoring on but and taking progress drop. Please revenue the RMBS top billion, by to some reported XX% accounting assets. seven. turn and investor are ratio revenue net sequential trust continued net approach market making earnings was And past of we the ¥XXX.X consulting-related came recurring the to contributed market insurance, improved The on lowest significantly worth drop trusts and billion, from XX%, from which we increased to to remained coverage revenue XX%. results but we an impacted proposals by fourth eight the portfolios completed recurring Management. decline sales inflows net full was the are over we advisory year. billion, basis while is of the year XX%. corporates, before a build KPIs led of Please revenue solid revenue on six risks ¥XX.X investment returns. at quarter taxes year of transactions, Given our of turn each individuals, more the for quarter recurring have year market base. billion. owners cost recurring to Fourth both of turn a closed The ¥XXX increasing of and for to business. page Business buy bear ¥XX.X client on make XX% ¥XX.X quarter-on-quarter. revenue the

mainly UCITS led fees, was related market billion, strong gain Century to to management increase Assets loss due billion and unrealized Advisory but management investee impacting Investments on investment to Nomura to declined of ¥XX.X international left Partners. turn investment performance nine. of factors, from slightly a top fund. shows businesses due bar negative billion ¥XX.X and an in Capital of graph fees. ¥X of in an The to billion loss under loss on American Meanwhile, performance the Please outflows ¥XXX and companies bonds gray page foreign the

which billion saw of full page investors into in the assets to shows and billion. bought on year investment the market susceptible ¥X.X more Inflows an of trillion growth on which balanced the at XX graph ETFs in shows ¥XXX trust turn steady grown ¥XXX increase have nearly the Wholesale. AUM of to The the However, in ¥XXX top representing In ¥XXX shows the as March came of billion volatility funds. past billion. red under around the management for are bar at inflows bottom we adjustment. for fourth year. bank right end the ESG the the to representing right graph over the business Please inflows less during market quarter, The funds, alternative channel,

Investment bottom in line. Global us spread billion. was geopolitical As revenue on overview left in net across billion of products amid as to Americas X%. left, in to gives macro widening AEJ and solid declined Markets Client concerns and quarter-on-quarter flows helped stronger Diversification The income revenue declined deliver shown net X% in turbulence. Equities and business slowed the products. top breakdown quarter-on-quarter regions down ¥XX.X The XX market Fixed revenues ¥XXX.X net results revenues. the on the in rates revenue risks ¥XXX.X for declined spread-related a flows on the over X% down quarter Banking. an revenues were market page was EMEA resulting and able ForEx and as Please a Rates client stronger reported securitized taxes Credit quarter compared to income by in income previous posted on to generate products amid Japan volatility revenues. such products in and graph growth strong and slowdown tap billion. region. such revenue for net FX/EM challenging revenues ¥XX into products billion a emerging Macro and turn to before to Investment and Credit Banking, while by slowdown X%

AEJ Americas ¥XX.X revenues top heat while net on right higher X% As reported the grew the a declined. and billion. shows map revenues, Equity EMEA to revenue

Global slight ¥XXX.X previous expenses postponed reported to as an in to giving was business are revenues and page are related remained year mainly Fourth cash billion the possible. the the RMBS years decline over top and transactions Please billion year and decline. bottom. This regions declined the multiple Please quarter particularly can X% you of Net position. market Advisory to an net revenues billion over the a sustainability when for by due quarter. we revenues and The revenues This gives XX reported from top XX the additional and was shown on doubled ¥XXX.X right. adjustments ¥XXX.X reflect since increase Compensation an Investment page The to to mentioned for last of Nomura of business The comparisons overall ALF the Please have driven above the at to breakdown expenses but reorganizations, level past Greentech. March deals Banking. cross-border strong and business benefits in quarter-on-quarter. performance. last XX billion, particularly XXXX turn quarter. revenue non-interest quarter and see XXXX supported to stronger bonus turn across slump X% on turn by International Japan strong largely two the Americas strong were expenses for revenue XX% shown to International. equities, a right of ECM are to overview revenues the but a our Fourth ended update billion, Other on expenses. for Americas financial page issue quarter. an EMEA driven revenues derivatives increase the led record higher an Other Advisory reported right for I full slowed for deals, ¥XX.X As due includes the transactions ¥XX year-end earlier.

trillion the volatility ¥X.X to risk by on the translation the because trillion, in ¥X.X was the Risk from ¥XX.X credit on and mainly of of widening risk bottom billion of spread and increased due yen ¥XX trillion market As left, increased from higher table shown were assets ForEx December. up capital end adjustments credit end market depreciation. the December, as TierX

and slowdown and fourth rate quarter from was overview heightened X losses. As activity That the capital fourth was CETX a XX.X%. quarter capital our and the our results of a in unrealized were results. risks the interest at by up, ratio end of by result market Tier our XX.X% was geopolitical US turbulence client March To sum dominated ratio impacted hikes concludes and

marks important However, an this turning quarter also point.

to made said the ago significant I growth progress dealing in areas. we and start, issues As now we over resources XX well-placed are legacy from management to at years with shift

of to this the off fourth grow revenues expectations in solid costs go into to and expect to remained client worth but April to revenues somewhat clients, start, related our legacy to Further and Retail will digital our the got start put a corporate services has investment we rebound and offices once income mass accelerate company of a deliver executive reported year order of speed headwinds has while high for evolution market equities issues. segments the charge design winding slow the owner, to revenues retail additional credit together particularly work market the up this efforts each up year strong uncertainty a we in services. we has affluent beyond to despite business segment. recovers. and net banking the were slow and in start. emerging Market to in our and diversify Our had stable deliver flow have digital that fixed results From and Wholesale able ForEx quarter meant have

expect continue manage risks to policy and geopolitical uncertainties as near stringently. and such remain we will rate We future the interest for to risks

our diversify revenue by Additionally expanding sources will we capital-light businesses. further

Day Investor will XXth. provide update of on Thank May We an you. strategy at our our

Instructions] Nikko is now. Mr. Muraki. question The Muraki, please have first Securities, question-and-answer We Mr. [Operator go SMBC session from a ahead.

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

Russia-Ukraine QX assets bad that. and fell about CETX regarding direct NPL or the has from the debt slightly. one And risk impact by increased And ratio the any the indirect situation provisions First, for percentage increased point. in

on first situation That's had assets your please? question. my what has and risk impact So the P&L

months. shares to announced. above it the X.X% period you slightly the slightly XX it announced of and period. this share of it's is shares the October four X.X% long question, that a you about in And over the so months, time of buyback period number when Previously -- was five Second was and

program? buyback you. period So a this long share you set the Thank time for why did

this is Muraki-san Kitamura. you, Thank

Your the shrinking that. a since have situation have Ukraine. Europe in been and first to that businesses. first And Western we years like the CIS stress those do the -- and ago, offices question and we of impact businesses I'd not Russia-Ukraine Russia have been And few

exposure not from that we There direct watch is and significant. -- settlements some of for have is the impact the our limited. to that. But very out impact So, direct rubles is impact

a impact, the these geopolitical terms does the risks suffered market the In decline in the have rise sharp impact and indirect of big a surfacing market of on volatility. equities

So, indirectly in yes, have that been way. we impacted

been In slight terms has of there increase. a RWA,

credit increased. all, of due rise terms also the First volatility widening this spreads the and risk risk, the also in rose. in of was of And and that to counterparty market

weakening the March yen, risk credit there end. weakening as the well. the was So, a increased sharp Meanwhile, with of towards

dollar assets is So, a our it risk-weighted lot of denominated.

weak So, is well. increasing we for yen there mentioned bad at how by that the was And provisions related an situation debt impact you of this And and the increasing, NPLs as or to the about it's but Russia-Ukraine not it's don't much. all. think

point and it buybacks set why can question current share time. second Muraki-san, period long? I end completed than program as that. And on very Well, think the have long safe of was be you out this a completed just when And the we that buyback current a to share share about and the in And be price, your and will be the period. we program So, the I did we the start it's share side short until with of earlier fiscal buying a that. shares previous the think the

a Thank have we of buybacks been at will saying the share et And on situation year, in of we I in this period period until limiting So, yes, are our and further of possibility depending And conduct the the share same and not the think next the as current look cetera or you. time will of next regulations, doing fiscal March price, past, March in flexible will fiscal -- it take ending buybacks. profit, terms basis the this happen in situation. not we on the year.

you. Thank

while? first risk period is for the is increase point this over time, Muraki assets continue to to the decline The under short of a in again. going it and to a in you or short come direction, going level Regarding it control future is this -- period expect a current do or

This moment is Kitamura. I The at ¥XX.X the believe. trillion

and this look will are portfolio we level. the controlling We at

the in not for of we may level with the from time the So, the weak yen, impact the being, cruising of I level the see lower for kind the current high. risk-weighted currency somewhat assets. And RWA terms continue have from And it level this but speed as the And do high, like at of to not is not being we risk-weighted limit there's all. some is level. do a think suddenly so it to reached it has going current assets of the this look

Understood. Thank you very much.

Watanabe-san of please Daiwa Securities, go ahead.

This Watanabe I Daiwa is Securities. questions. you. Thank have two of

RSU, billion size same Expense on US the think size? all, year of in level the XXXX that policy, you And customers. of set First what's be XX% ¥XX set ¥XXX billion shares after ratio you the buyback should do backdrop year? worth do how capital the

down actual it or If do be will investment? so of in needed what to Will your revenues would you Those you spend will the is two be are go my the fixed cost? cost think area go continuing questions. still investment down

your Thank you questions. for

the of In amount? And a the asked set billion ¥XX question. the terms took Watanabe-san the program ¥XX on of level was how factors -- set we did at was that share ¥XX your billion call previous we we question, also, finished first previous buyback and decide stock That And level. into telephone ¥XX at and price similar billion comprehensively less you and various lower. the we billion

We enough to buyback. not buyback And have RSU, time one this that in it's So, cycle. provide needed on funding. we decided we another to

depending the the around. we for introduced paper time RSU this decision performance. we performance So have made on

be any will part will determined, that depending deferred the number number granted shares. performance RSU situation, of the be would determined. shares be you and bonus be would give cannot thousands the equivalent the and we on amount so automatically be the because of price of So bonus of And stock will

So, we would predict rather specific that a be can't number challenging.

to question. question, come the expense second your look that at level we If your ratio So that the wholesale so on cost down? assuming. less wholesale in for had this wholesale, cost. more been And planning my and down the trend is is or And to we is response level is going recent first revenue goes the for if XX%

areas area As you growth a are moment investing. the at is priority capital-light, are Advisory know where we that actively

to cost is generated. before be there So revenues begin

overseas be and cannot is staff recruited be management revenue we going an effect lagging to in well. but revenues booked this business is be risk this But and are generated management, of kind corporate is has injecting much that of is resource-light denied. to recruited RM And interest So cost where before a has up, area Asia, efforts. but sophistication as are

appear expenses generation. future before investments to it that these will lead So, but are we booking generated, are profit may revenues

terms expense in a ahead. years months So, ratio in there of the further be will decline and

you the Thank Thank response. detailed for you much. very

Mitsubishi question next The Stanley is UFJ Tsujino. from Securities Mr. Morgan

Tsujino. This Thank you. is

Q-on-Q fixed look First good of we Americas in it in too recovered, all, each was slight credit if EMEA decline. income QX. geography. very -- quite was at stable AEJ, basis a

a this decline. -- was Americas So But up. are there -- interest time so going rates going forward the

businesses. for previous tougher issuance face And year. so February, -- we mortgage that January, -- have with agency you the so clearly. current is year fiscal a March, the that the to compared cover other to So And situation quite falling will

is that the or EMEA, with billion? said various sustainable, please? you billion. on QX, So end, listening continue this it share And you you ¥XX -- that why covered the you next you So pretty that billion, saying on due Are or it expect improvement but might previously to And were able So you could saying you it about buybacks, think end only fiscal year, your buyback. in earlier? And each answer that's up to close you said able to to keeping than question, talk to some this us early. revisions us earlier there slight And your the because may to ¥XX you previous period factors? like just increase you time, share but not was in my much March. ¥XX are outlook current buy And could views seems just more or it my make but until but are your -- are complete Q-on-Q, are the you with for you going question March is to in do flow share region? you

year So So is are reason And in -- you uncertainties this you this share some views policy? your there also market. that that is fiscal are the please? the why your on for could

is you. Kitamura. Thank This

Sorry, first my two. one the more. after ask I'll is third again, but question, Tsujino, This you

Okay. Kitamura. This is

outlook, were For year that fixed your question. by macro FX, it rates credit. strong first throughout income products and but more the initially was and like businesses businesses region the And was were the securitized last

But two products are agency which rates thanks well is yes, the rising to our the these are rates, bit is business, the in And the mortgage options. main things interest a business, did in for So doing hedging spread Americas, needs for tough. well. which

also be do think I it there And will rebalancing well. needs. portfolio will

and So the there's activity going and quarter, for EMEA the rates business. macro client also because in pickup business main recovery strong the we a there expect our the business business It this rates or the FX will was fixed is activity -- type in client income. And forward. And drive businesses.

somewhat for -- These And also in quite AEJ Europe. our are QX, the was are and strong. between similar so, the emerging And US type Asia FX views businesses. macro

Chinese easing These are drivers And and is monetary the in business FX Credit emerging. more AEJ up. the did income recovery slow. Credit FX recently Credit and at QX, a and But bit emerging the Asia was also and actually business fixed is we picking business. from benefiting is well. good are which the Our in

are pessimistic about not this. we that So

are AEJ. optimistic about In fact, we more

income So fixed business. that's the outlook for our

¥XX that's actually, And to there thank next the consider it. read buyback, will the the meaning that to the will billion this – then, quickly. round get of deep question And second comments. But completed very between we and lines Your trying case if much you and isn't to maybe read be trying buybacks. for the my tone about of

your So those first are second answers questions. and my to

is This Thank Tsujino. Yes. you.

remaining The probable provisions litigation third and provisions loss in increase maximum And for was is billion. were made. the two ¥XX there loss question time, there is the for maximum and about that this you the an

a as market. should And moment, of of maximum the that behind concern at that But lot big is the – rise of this other how in any are biggest for this? then to are loss, estimate issues so Is was the look there similar? and this that concern Is Nomura a led we And you. it's fallen recently. there

is Yes, we year. go fiscal Kitamura. but in this concern the that This surfacing sudden there too into was is and litigation this was and cannot much detail, of a

in have aware that. issue. So the from been a this management lot out And the that's maximum also the loss And increased point within as of we why we of concern is and causing provision. made potential we and Tsujino-san, externally you QX both

QX, we within rise This to is is have wanted no concerns this. concerns maximum resolved proactively in about get XX. do that we a most do. And to us. has increase year. the of major are and or that And long-standing come to about of loss down so have And of a outstanding. behind we billion, not ¥XX ¥XX issue the ¥XX total QX the expect a billion, pretty much we quite a and provisions. the financial – there it sharp are remaining billion treatments made But this result, fiscal And so made as it act And we of

We made at at are moment. And the have concerns, for not least we this necessary expecting already the provisions.

to this loss – answers losses, that surprise the we question. maximum So if to do lead expect actually in not this your a

much. very you Thank Yeah.

The yours. is Securities, ahead. JPMorgan From Please Otsuka-san. floor go

Otsuka of me. is I JPMorgan Securities. hope you hear can This

hear you. thank can I Yes, you.

revenue revenue ECM Advisory Can you growth we mentioned for if side one imagine been business, XX go would have – DCM on one billion if one that up M&A but us your Advisory on And question answer. to IB a to of that refer and that would understand Kitamura-san had upon increasing QX split ¥XX.X share? revenues all, and for in of IB, was by the example, breakdown. has revenue, And business page and you that degree presentation. easy first it one be based you to total doubled, I the the given us right-hand what

So first that's my question.

revenue, question. Thank broke What ECM you DCM first M&A? for and the would breakdown ECM, just if or between happen DCM. we Yes IB that down

So you the a the of revenue. that share, composition want a proportion Is of correct?

crude DCM would others. a Yes number and ECM, do.

Thank QX revenue, advisory half that M&A. you for QX revenue the and is question. of

And what about ECM?

volatile a and the guess would other of the I areas around is deals, existence XX% area around finance. depending be This on share would And DCM, like XX%. there are

of breakdown. proportions those would So in terms share be the probably

billion, Thank somewhat of but ¥XX.X others you. included would ¥XX that Then advisory or be half is billion.

right from So ¥XX billion. to -- ¥XX billion Is ¥X grew from the it that advisory. image? And so year, during past billion the

for right Thank the image. that's Yes that question. you

we image? drop. by strength was question. of proceed Is offset but there ECM, DCM a it has advisory? been the I the second business quarter-on-quarter revenue, And carve that shrank terms Investment Then in my has that to QX Banking If January-March right in out but in quarter the in breakdown declined

it's and if Yes, But drop. the is amount M&A slightly but Institute business that been That hasn't declined total pool the as in or of it wallet the depends significantly. reduction well. the has a whole, drop to very correct. And decline you're isn't fee we ECM Financing DCM market, slightly business has our fee drop. in at that steep. unique look industry loan was And on pool has a really significant experienced reflected our company. of there for XX% but as dropped that's experienced as Research not also that the the a biggest

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in Then your to you. advisory comparison peers, you been defeated. briefly for haven't Thank

of So gone has in share terms -- Nomura's interpretation? that right share the up. Is

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the Japanese business that true both both? is For and business for international

aware not the performance international. and at advisory -- Japan level, Nomura. I global quite the breakdown was between Sorry, robust At of

Thank you very much.

Your points taken. Thank well are you.

Bank Please go Securities ahead. The of question Mr. next America Sasaki.

is of this America Sasaki questions Securities. Two Bank from Yes, please.

First, booked to for gain. about be Institute -- and in And have the -- but you this QX, the you may side have example link, hard capital Research you litigation costs. on stock one Nomura

those question. NRI? of cover this to intended to first gain we think this That's or was your is decision How separate? completely my book it So, should about costs, capital

you. this Thank link making the disposal. standpoint we And This led good own, is assets two. which of Kitamura. connect the or is of We to from do the two the use not the

Okay. Sasaki. This is

So, was not the like rationale the instead I shares. others? to choose NRI some think are assets why And you that, there of NRI did there but other own much

for stock to other sell. tax first sell assets mind. assets, This stocks think make within want than our sell cannot is balance Kitamura. assets the about When of do That's land deferred assets you why that is we comes assets, sell really And assets. good which to it of use is trading chose sheet, trading example, most to NRIs And we liquidity. that's to something the hard trading and we we have and

sell that the or can actually. So, we are limited quite subject potential classes

This is Sasaki.

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our it this trading the And commissions asset and boat to balance us impact then our fee, ourselves will will of no fee base But important and benefits the more the will negative if happens earnings on about be the but trillion commissions us may put we actually entrusting has to decline, this level as and grow charge is type level and revenue. for with new offset improve look a and impact. course, of yet. put like level itself this enough kind clients to to And which customer is there money of doing a can money satisfaction get fixed only decline. on our something fee this negative this Nomura. should The impact – approach a of same P&L is ¥XX to it as fee. be in them And sales that customers we plan fee such we to frankly to So or

I this you don't you but the understand year fiscal see. now on to you very assets? And have strategic this is much throughout for for And Understood. I much do from up I how to any a a views but year year actually, important do you, know how the that change level plan for balance can fee that? go grow,

can – intention. some we we maybe growing spend a Day Sugiyama the don't few And to year significant But might a trillion. more say disclose Kitamura. a moment at in May ¥XX make the this don't Investor no disclose. comment. the years. fiscal years on well, Well is, size we for can target we grow on of target as numbers XX, we That's kind there to -- all is I which it our This we will are And we it. several than earlier, will have And said

much. Thank very you Understood.

go Jefferies Next ahead. Please Securities, Ban-san.

similar you have a Thank this and opportunity. business have Retail on and Japan I question. in Watanabe-san's question questions I expenses. for to it's two

And was And you to basis topline secure secure mortgage be decline line As the cost mentioned down was there high situation. on due income. quarter-on-quarter in the when to a you to goes income seems for low. bottom pretax to pretax a flow

first if to So, advance was that is, any in had be generate expenses order retail that level points? retail as it this fee up think do you absolute the make investment in That's further investment can the for particular the explain my business that had quarter there in require cut of extent you And those or To pushed new advance? question. level policy to your that can you cost you including profits? market did possible in in remains

bumps, a as and experiencing And and needs deal well as countries. overlaps you businesses is or pipeline? Specifically There could pipeline? demand. decline Yen cheap in rise negatively impacting rates so, Second and Is how? question, what this with be your Japanese cheaper your rising already that increased are Yen impacting have rate other explained interest if overseas that

my Those your So net is being in are not on totality? two influenced questions. basis pipeline

much questions. Thank for you very those

By to was invest trying or property Your are In strengthen approach, effective of approaches we resources retail and necessary each define may are segments, intellectual digital segment-by-segment on we one affluent may trying first in trying resources. another require in mass most human segment, to defining to those are high question and cost. And resources that the segments. worth net segment we be segment, owner corporate required.

we segment-by-segment the as look we at segment-by-segment implement So will approach, this profitability.

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the Citigroup. Mr. Citigroup from question Niwa-san, questioner Niwa moment. from ahead. The a from Niwa-san Securities. Niwa ahead. next please Please is Apologies, Securities. checking the go Citigroup we're with Mr. connection go Mr. from wait Please

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Just questions briefly retail in revenues. and two EMEA

be EMEA, For continuing. seem the losses to

and a you you that revenues. fundamental could of what of ¥X share bit autonomous retail extent retail to profit about said about text strength do what segment you the is billion So your positioning business? think do but the going an weak. to seems it? recovery, The view your you you're the EMEA In Second, expect

So could you share as your views on well please? that

the fixed situation. will and And and regulations several going the year's point year very I businesses to market EMEA our tough faced And this hub and the revenues. -- to your this And last about are of expect normalization Europe. compensation income EMEA; first with positioned questions, on answered recover. business. forward in And Yes but analysts asked macro normalize international some of a this other there the we meanwhile we products have as

So to do and the that. we EMEA tends stay costs in acknowledge high

we which the right the XXXX well. EMEA strengthen And the And will for So business about And business, And for this infrastructure by revenue, Europe sustainability, need we there's business. we've our related flexibility income, advisory we fixed March in sustainability And our of of diversifying Greentech finance. cost will there will if new the still we drop capabilities, we and revenues and that. and to but to are apply advisory profitability there some EMEA And leverage as implement the region. are from we to it apply that We're well. very the Greentech AEJ. measures. aside in have will and it's to talking on -- there's has sources to of drop, And that. in mainly does in terms -- improve EMEA also US, limitations did been working the

it bit about was was And the and flow flow P&L -- earnings unclear low. impacted the out, Your bit due that make that this taking And outlook customers second -- is market hesitant line environment market the now and we portfolios client-centric. will that somewhat a the very as the market the of is terms business question monitor this in is in initiatives was of the meets products penetrating flexible And working partners and our proposals needs our as and weak our a you Retail. Yes has And some point level. proposing to the to bottom the market are the of and well. of environment.

the going may that our within is send we like sound thoroughly programs only interest will product And like focus this That's they resolve Nomura. autonomous -- will help of not business message helping on but the out to but important Nomura. we it will our we in But issues, realized. that have And find not some in of right themselves the on clients. these our provide clients also proposals we top to are of that in which our realized. there we which recovery clients the important -- product not all issues, a And we just make issues, they solve consulting, So themselves advisory, these the much timely that also and which job clients manner is of terms proposals. hadn't in even are -- to

of latent role these clients very including the we diverse. becoming think our -- I needs fundamental And are the that's of needs retail.

and are domain appointing these and we in directors are And strategies, business of this categories. planning up each with domains or approach each of So domain-based coming business for charge we taking with design speed. are we

question going if don't I will Retail but its Niwa-san, rebound answering in So you. know sense, your I'm that forward. Thank business

Understood. very Thank much. you

finish to would like time It's we session. conclude question-and-answer and to

would some ask the end, IR Holdings In please address Department. like Nomura to closing Nomura by Holdings. If have we you our more make questions

quite the there March that questions. right one-off perhaps, much, we everyone, all went Yes. which your up hard fruit lot are the the which working Thank initiatives a you are perhaps to have and for issue And the think, on is asking we of very progressing. down, items were direction maybe extent. XXXX, understand starting making heading and bear participating the results but we I at quite certain one. is to And the are that speed to a been

So we initiatives work will make even sure -- further. we will accelerating on the

free than more Group Nomura. up that direction its put talent to I And the group-wide for going point management forward. positive us. able been behind in financial, very will sense, forward. that which and This turning the decade the place to important with it resources this move a legal efforts so, have will our but we resources, And coping continue also just this a means to took not ago, have more issue negative And Nomura proactively think, is we legacy been pretty much

we and support coverage. you much. continued to your forward very So look Thank

you Thank and call. concludes today's your that taking conference for time

may disconnect your You lines. now