Nomura (NMR)

Takumi Kitamura CFO
Masao Muraki SMBC Nikko
Natsumu Tsujino Mitsubishi UFJ Morgan Stanley
Kazuki Watanabe Daiwa Securities
Futoshi Sasaki Bank of America Securities
Koichi Niwa Citigroup Securities
Hideyasu Ban Jefferies
Call transcript
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Takumi Kitamura

Good evening. This is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the first quarter of the fiscal year ending March 2023 using the document titled Consolidated Results of Operations. Please turn to page 2. It was a challenging quarter as U.S. fears market recession of activity holdings. and market, on our hikes impacting negatively and rate of dragged a the securities interest mark-to-market valuations

Management and private over and ¥XX.X quarter in you particularly businesses into ¥X.XX two income headwinds. booked investments, the in revenue resilient. before on reporting inched negative dropped up income Market FX to market although ¥X.X under Products part a Retail due Income had postponement to through Recurring a in Wholesale ¥X.X we segment top channels levels to billion. income XX% reported assets level As in topped of in income per Banking. income ¥XX.X the alternative down Investment loans. volatility ROE had Macro of its in XX% volumes of on net term, Banking the share inflows our segments, business. deals remained trillion. was relatively businesses, revenue shift a of an higher quarters. monetized Earnings and billion. compared markets, slowed taxes revenues uptick from Three was last Investment into core investment continued to spike activity. Investment a Investment net slowdown shown and quarter income fund three a three XX% traction as transaction annualized rate led reporting client revenues recent weaker before bottom the significantly ¥X client quarter loss slumped particularly its of medium high gained revenue assets Management management, right, Despite booked in expanding with taxes Equities of fee strong and Outside another and billion the recurring billion. see we Advisory long despite and can discretionary and interest taxes to to in before ongoing good inflows to headwinds this, management right quarter-on-quarter assets widening the In to our solid our revenue X.X%. assets, Wholesale, The in business and trust diverse Fixed push range investment

revenue, a on As transactions before of said, recurring related market net a for given losses to valuations remained headwinds. of the left. Please of revenues revenue on is six to Meanwhile, have income X From ¥XX.X the impact Please page X% product. quarter-on-quarter, sit sales billion on results current I by bottom assets, clients billion, investment transactions. to resilient ¥X.X X% given business. fees market from at each declined turn total fair turn revenues hedging uncertainty. worsening we Flow in income taxes Retail from client as up the continued sidelines as sluggish page of the based remained breakdown which and amid to an was led while overview to this economic for losses securities quarter to ¥XX.X billion.

quarter. office Previously, as should well counted changed including how here individual are Investment stocks, than quarter the and of only stocks give to onwards, trillion. the complete primary their this first April other and which sales May top shown This sales. corporates we nationwide sales across trust stocks sales stock to view U.S. Retail. grew and a Group, secondary gives part Sales you sales Management global with slow of of which quarter sales were a invests Call network. branch we stop calculate a X% our owners quarter-on-quarter as more total complete consistent May. new Wealth an and trust bar that came clients this last set Japan the graph, private by Net which XX% XX% of update red total channel the Japan being Products declined offerings offered of to & This intermediary. our is X, selling in almost scope via we increased the as unlisted Retail quarter our in and funds KPIs From and turn serves this REITs, U.S. in markets. year. publicly investment we in declined page ¥X.X Total Please and to Japan’s push into compared

on into revenue flowing which launched from assets loans. level quarter shown funds rebound April, left, represents assets in into was strong with discretionary billion. the investments, fully and As recurring inflows last a fee top ¥XXX.X net This were

on As a here the result, top remained see can as right. solid you recurring revenue

revenue June. bottom Capital ¥XX.X and had an we an ¥XX.X for Nomura contracts For of while to page impact our Please unrealized stepping services Investment an X.X Management. on substantial a American end million left on companies. part billion. salaried up an taxes investors, ¥X.X employees, billion, revenue billion, efforts investment Net of division’s the at portfolio area ¥XX.X loss loss a billion the surpassing of related to X declined revenue in Century income ESOP yen to mainly loss with overview generation Investments This to before billion for breakdown to the on negative the approach we shows our next due turn performance. XX% the which Partners ¥X.X The of was was of are increase as of total of saw

for to However, was saw of Management billion. slightly X. business Please page slowing revenue, solid, calculations quarter remained concentration turn which ¥XX.X earnings, stable last fees. despite which fees success represents a from

at factors. the management March down of trillion, was trillion left, the assets from market As end end ¥XX.X under ¥X.X shown due the of primarily to on top June

page the advisory into of In ¥X.X of ¥XXX billion investment terms ¥XXX booked markets, management of assets business private to net the net ETFs, XX ¥XXX Wholesale. to X% trust outflows area our billion. flow but for on of focus increased of funds, Net under revenue to business channel billion, investment contribution bank alternative the reported grew defined and inflows the turn Please inflows funds. In trillion.

of ¥XX.X quarter-on-quarter from billion as Wholesale due losses from to the U.S. yen depreciation increased reversal with a included XX% quarter declined revenues income well expenses transactions Income also thanks particularly results XX% this Please revenue Fixed last yen as for revenues to ¥XXX.X graph Income billion. turn Although main revenues ¥XX.X in with and quarter billion. Global to XX% included strong depreciation. to Markets to strong grew Fixed products. to taxes billion. page performance an showing client, before a arising of by overview net XX business From by was have increasing grew we line. ¥XXX.X income

such volumes Please Equities slowed and from Macro strong core Americas Credit businesses, lower more client Products AEJ billion. quarter Finance XX decreased down XX% to Derivatives, ¥XX.X slowdown related and FX/EM a of This Securitized Products. as revenues trading to and but and reported increased as in billion, one our XX% revenues muted offset Rates Net activity. revenues on Equity for were Spread ¥XX.X cross-border the quarter. Products with revenues quarter-on-quarter. revenues transactions consecutive businesses stronger to page were Advisory but Investment as Banking. Americas turn relatively revenues, Japan for revenue two non-interest for revenues costs to transactions. than quarters, to resilient an page over multiple also same quarter. and Firmwide remained Please of global strong billion sustainability sluggish ¥XXX.X past around declined expenses. XX compared such the revenues seventh level ECM ¥XX last ALF particularly overview of as billion. as slowed Globally, Advisory turn remained and international the slowed. X% we supported was

related depreciation, because left trillion, assets of the to to yen to ¥X from by to of mainly additional trillion due increased in significantly This over compared FX an X end to yen. last ¥XX.X The increase of other costs March XX ¥X.X March. translation our Please overall bottom increase of an yen RMBS. financial position. capital due Risk-weighted as Tier depreciation. turn of included quarter trillion to of an While ¥XX end expenses the increased shows of increase the billion page on billion is ¥XX for declined table update costs adjustments

risk market the trillion on As billion. the risk and higher ¥X.X increased ¥XX Credit shows, to increased about market right by widening. bottom also waterfall volatility credit spread graph due by

portfolio not is at up March. That of XX.X% and the XX.X%, common risk-weighted X was of overview have equity are ratio To depreciation as Market at the has client hikes Tier fully up relook the into resilient my and muted businesses. we yen in As underlying June strategies revenues prompted driving sum their uncertainty activity led while and our saw flow was bear the Retail first X each July, investors But our business continued our end end factor taking to results remained and yen results. three ratio concludes Tier recovered, assets, to our both said I compared of market rate this in core a from some from portfolios. down markdowns revenues and business. has quarter depreciation quarter, we earlier, yet to

with Credit bonds For Motor Corporation’s monthly of foreign a foreign are investors increasing July bonds their sales Toyota and in in instance, record. portfolios posted

remain consulting approach strong Equities in assets. Investment EMEA and as and has inflows in In we into and Fixed slow, in revenue traction based goal are Wholesale, recurring opportunities FX/EM planning Banking we asset and Our gaining and seeing Rates been net Japan is ongoing but monetize Income AEJ.

being. interest and uncertainty the market rates inflation for around expect We continue time to

liquidity supplying Thank providing focus support. will continue clients and solutions. we right very with managing while our risks for you closely such, As much the your continued to on


SMBC question Securities, The is from first Muraki-san. Nikko

Masao Muraki

is Muraki Two This you. please. Nikko. Thank questions, from SMBC

your QX? the why question page Americas in -- the look weak? ¥ and majority. including out about do seem one-off the losses trend? the profit wasn’t analysis, presentation to evaluation please level And is net is what in your -- bottom my weak, in losses, or the billion items? of earnings that loss, in is but own that show and you but we this share remainder valuation and shares First it underlying exclude how dividends? the acquiring making your -- of at you loss these You On U.S. your progress And you you’re robust. based remaining Should strong But And U.S. second ¥X Wholesale, and your -- buyback. in if view it the loss is you explain billion. in up makes the we your said your But, ACI should be implying in non-cash which regarding the about is was income The on the earnings line strong your these business valuation XX.X -- is XX, thoughts are exclude what Americas, is

Takumi Kitamura

expenses of QX and there legacy quarter, was in previous pushing year, as impact QX, for this the out, And have Americas. bottom-line the last year the certain DVA, very which technical in question the down expenses we in declined. sorry, from But the transactions, and Regarding these there well. is as -- in legacy the issues, a that personnel in amount, or you pointed that. that are in Americas, of your litigation this And first assets, about the CVA earnings related we was a booked -- was rebound but booked there QX, and

there technical So, issues. some are very

weakening revenues earnings what is pretty was we if factors, in if And improvement. impact, from disclosed, QX XX% about we is pretty Americas, much flat. in that there performance and was exclude So, Americas. exclude we the the it or Americas year. last the much Wholesale currency the of And the And has these remained the the profits unchanged in

there QX, in first factors. question, second market were Your

So, our dividend. onwards, a have as a which to a earnings but quite to strong will start, source QX you we the generate in made serve the sure And focus do of is pipeline. make slow

And a do. But been which we on at opportunities irregular pipeline. the period. of realize the finally to quarter, in return regarding there that made issue. a was So, really impact shareholder profit much the policy is change the there our to previous our a litigation what was transaction, And legacy moment, the about haven’t had past, during of very these hasn’t in big decision impact from focus our in terms the and final this

of consider consider did aware. as will is are to we market And the any the consider accounting throughout and profit when to time, different bit this certain last year. situation So, the in There this we source and we is period. a market you factors from dividends the But are that on factors issues other a the case, extent, earnings dividend. whether the our and decide

will generating we focus So, on the profit.

Masao Muraki

point. the regarding is first This

what personal about about issues devices local weakening to the If of you do business what and losses for much expenses, And in we months not basis, your QX And to if But are fully have peers, about yen, worry for their been at affecting three made is U.S. please. earnings. any like cost peers, purposes, is there regarding you? I not And issue the think onwards? look your the they personnel inflation, the US$XXX this booking the using million compared the changed? Nomura to a or record Has related including keeping a this? currency there explain ago, changes, Please internationally? are in that has the provisions

Takumi Kitamura

Using of electronic devices is still investigation made U.S. the going data, certain clients in a with QX the of ongoing. And provisions the is unapproved authorities. and Nomura we communicate also And and certain to the the booked on amount. amount, investigation by a storage

moment. that is I can So, all on at the comment

Masao Muraki

and the its of weakening the regarding And impacts? yen

Takumi Kitamura

but the a visibility that. earnings and in benefits But impact the currency comps is basis, rise, Q-on-Q compensation I the changed said and that hasn’t much, announcement, did we as of previous have on Wholesale. on and the benefits in excluding -- Well, the the about

So I there much Yes. hasn’t hope that your question. been answers impact.


question The Morgan UFJ from comes Stanley. Mitsubishi next

Natsumu Tsujino

My global quarter. first markets in this pretty well question, did

fixed Japan, flow but EMEA in income was robust. volatile struggled, GM equities, market for the rates For and in Americas,

year? compensation but for what will could might And kind be And an this timing to market that this changing make perception? Of the the could foresee the increase for prepare to So, turbulent generate result? It this situation going this was expectation me you the once anything, cannot the first of equities, may regarding outlook difficult comfortable, And we July. this. wouldn’t good is some market. be bottom. the -- seem happen but it navigate basis. situation the second your But, optimistic. April is we EMEA be in benefit adjustment. continue of is hitting in for the is market, and cannot And But it are the to quarter, equities remainder to color? question after in have I USA, you give say June be the be forward Q-on-Q if to navigate the certain then you you That’s situation July My And what may But rally, it question. after regarding Would I course, on that. for able you towards the flows. may

in it is from fourth of it came majority case, I the personnel fourth said quarter -- You that you have in the comparison. comes as the really the the pool end FX, expense So, wonder? a looked and had but might smaller of of quarter, so bonus

Takumi Kitamura

Thank you Tsujino-san. question, for your

the Let applies wholesale question. exchange When In retail said the quarter, graduates I rate, newly Japan’s university business first for had FX start your to with second who business. that joined firm. me example,

the And have higher So, deferred for is expense tends to first also than quarter asset. the accounting treatment first personnel other quarter. in there

remaining those factor factors, So, the factors, tends first because FX. excluding of is be quarter, such personnel high expense to but

question on has positive fixed and us, the I rather But went do fourth first that upon So, what given to believe understand yield the the income, seems what the hope recovering. question, I is JGB I evaluation. that significant quarter the first And positively. us volatility That is was in gone background have a that result regarding quarter, the based the up. than situation you’ve served Japan fourth was up the of for business you for mentioned. your quarter,

long been actually, -- bound. market range in a a we For time, the sense, has

significant volatility Japan back on and have bounced seems the And in So, to fixed there seems went to a that been mixed And that positive up. have up. impact had market, situation views about have the what Japan a contribution. -- which also business, made was in our Also of income. Nomura In from regional was mix, different USPS. credit sense somewhat AEJ regional positive is as mix

you well, credit our is could in Our credit look AEJ a China spread spread, at credit, tightening. take but

kinds believe I were these So of captured well. opportunities,

outperformance fixed of So, to the that believe led income. I

market difficulties, the Tsujino-san, out, risks has business controlled is In revenue. pointed tough. rightly generated quite you As and our environment such

of then if towards volume business a regarding decline. volatility volatile top the expectation the market the equities, overall, our continues. line is highly the could in So, robust on have we transaction that continue, could And

may maybe and the seems decline, trading market pointed the the it you to volume but are smaller. hitting in of be who then As the be geopolitical getting client muted countries out, customers the their risks Default case flows that activities. emerging bottom, risks dampening maybe the sentiment in becoming

there we believe how of certain optimistic So, I I’m amount that But a continuously opportunities sure generate not be. to revenue. is can

have hope So, can expectations. I do we that certain

well. in business. in earnings, derivatives do for of terms derivatives, we those pretty the Though Asia, have core you. which Equity is Thank weakness but and in expectation we our So, regions. did equity saw the Japan our recovery

Natsumu Tsujino

very you Thank Kitamura-san. much,

applies So said regarding other to not well, you specific when regions as the equities, comment Japan, but it’s shrinking? to it’s

Takumi Kitamura

Tsujino-san. correct, That’s

Natsumu Tsujino

very much, you Thank answer. Kitamura-san, for your


Watanabe-san is The from question Daiwa next of Securities.

Kazuki Watanabe

from Two This you. Daiwa. Thank questions, is please. Watanabe

page is of to of yen higher that cost ratio. compared on weak both implied which XX% XX% denominator in numerator. First have is income Wholesale’s target, ratio about the works you expense QX, the materials. the XX the the and And

the fees which So, explain heavier, bit Including a and cost ¥ ended the up ¥XX your it’s in question, exceeded ¥XXX several your please building page outlook? years, compared discretionary investments, billion XXX burden’s target. means billion. please Retail slow explain of future per target why quarter. This to seems by Second as trillion June a X. level getting

please? in do addition to Thank the So, fees, building up you level how view the you.

Takumi Kitamura

Yes. This Kitamura. is

and since the And investments, Management future. especially the make have is you and saying which have cost the than out, will International were IWM, M&A, the we XX%, Wealth investments for the we or pointed are in income past, and exceeded have that -- we that. as been target necessary First, Wholesale’s higher ratio, acceptance we

our So, this weakened, there. is no in there revenue inflated, quarter, revenues change expenses. both and the impacted that and yen both, to And and stance expenses,

high a and are And the revenue. to had inflationary So, trend, seems to but will not in -- But down. forward, ratio been recently much been continue the Banking, be compared the on for to areas. these had growth we market frankly, seems investing that bit we expense invest calming areas And focus at moment. on inflating going our Investment that an

crucial to ratio, amount cost want expense become Banking. easier need also terms So hopefully control line. in These to we income employees of And And technologies continue will absolute in it’ll more but to been in to us hire are area. efficient, we it, of the absolute level control, efforts the Investment our of will operations to something make we lowering. of use costs terms cost ratio. is in top already the income improve our digital we’ve ratio, And and our for that we the and doing continue cost,

will investing top achieve have and items -- not than costs to in to ratio make to of line at some our we target. that our make we to cost should we as nice will is, would more items. be efforts we our XX% other variable to income nice have the fixed. grow planned the like expenses where invest And control to and make Meanwhile, sure on to the And thing the continue be areas will

that So, question the costs. to as to speak. are is shift And working fixed on we the costs how from we variable

that fees to and the in customers. so progress? our Retail goal. thinking want view we fee we that towards we overall is work about with customers about the following-up in working we a question level level how our portfolio can And together the something with their on support set second long-term customers and Your The

increase fees, results. customers. point And the amount good build to improve up we doesn’t is if satisfaction of and the level the it to to try our lead So, of

level fee this Our and lead level result the fee introducing the focus securities. new whole our on a should is and satisfied, businesses. numerous And customers to should as satisfied a of with should And hope assets be grow. as the keeping we choose point fee. result, of customers of That will being new the the introduction level

level So, to simply not intend shift trying we into fee what we assets. to not existing are That’s assets do.

are the is it’s And level do feedback up. customers. positive get is person who level getting. And our or sales us to not objective and the thing, The giving the to is level of same or expect is also make feedback, the at assets. assets linked that’s a the to goal are are the or investors customers to assets even fees, as Our that we from fees trust because introduction satisfy the money level existing linked investors fee our level proposals, moment, the the result, of choosing us Thank about to and shift fee proposals fee if yes, And positive our we giving new feedback you. their it’s customers fees we fee to fees. positive more because linked not structure feedback are partner employees they so this kind saying And investment And the to grow in our reliable And from fees. the to for the level business. it’s than want the it’s the decisions. rather partners easier to put build not very can are and customers

Kazuki Watanabe

real you Just expenses, performance mean you’re -- pay your to are variable, to variable expenses does estate point, shifting talking What the costs that by and system costs? to which do as you for want costs? to the do fixed want you paying mean IT currently say to you you check or first about expenses, shift in more your about

Takumi Kitamura

systems IT those have Pay for within things are these something performance for have are working not do fixed necessarily we we and will Thanks already we which and costs, more on, thoroughly. is on follow-up. yes, work it Nomura. typical Yes. And to

for onto we assessing are use external we what expenses. what shift to like would to we resources need hold and to So, and variable


of BoA Sasaki-san Securities. question The from next comes

Futoshi Sasaki

questions. am of I Thank Bank America. two you. I have Sasaki from

can is we is a expect rate present also, valuation you to Century, why that the valuation the booked decision? have increasing loss? loss. And American When reason why deteriorating? improve? investment? booking you to when discount reason First Could come their for you question That’s the my on loss question. business American first to the interest American what elaborate the you the came With conduct underlying valuation is about value Century’s Century you situation

is, question first second for first The the But was the profit add said back seems still extraordinary when you level quarter, the level level, the quarter low. at looking even items, profit we high. the not

have you to clear trajectory profit where two do used a So, back to questions. the level are you Those my of be?

Takumi Kitamura

ACI, regarding and based upon market value First, every and based conduct economic the evaluation. of upon indexes, you as a performance know, fair ACI quarter, market we

USA, a do For think speaking is was quite quarter, significant, the for sizable ACI’s evaluation the relatively the correction case. I a interest particularly and significant global market that in rates Then valuation to us? loss, not increased. April had equities is also it June primarily numbers ACI’s loss And booked. so is

sense, and equity looking of prices, the in market do with performance looking valuation parallel market. is believe the their trending is that at In I managers, Looking stock at reasonable. at our asset the ACI

that say asset are positioned. with I’d So, line is ACI other where managers in

quarters On the loss XX worth for two booked the hand billion. valuation other regarding consecutive

So with by through. as associated worked ACI management challenge volatility a relate to perceived be is huge

seems That’s low. the could considering comment. evaluation we the have your measures profit we So, level first as implement. the of needed, that Also, we result, quarter are -- overall mitigating

we result, revenue this improvement disclosed. ROE, more of and Nomura, top-line add not or improvement the factor we challenge. in we factors work that being is the have the was various to top-line, have in answering first on of at revisit But so but satisfied with profit when back all for we are to structure. pre-tax income is saying making Retail Retail We questions And to billion profitability. division’s are In ¥X to division. major raise are quarter, cost order the a of And the top we asked, do and

a I project structure, cost revisit of am division, Mr. Retail to cost Head structure. Regarding co-sponsoring Sugiyama, with together

And those of for the up the initiatives be the that’s significant, that Also, do and to frozen going individual -- have in will I and going The are as would IB can segment-based what from visibility the and and deals quarter? are measures. have expect cannot the situation are quite I our So, it the the and going in of when the Then, segment say first implementing a make effectively ROE tactical improvement that pipeline. we But the at details market accumulating for look and in believe should of was we significant. resource we to whole I But timing. to running, firm ECM. going measures segment, deals when is frozen speedy in improve. foresee are the especially specific be to to business, division, we implement approach we each the like for are each Retail improvement. allocations numbers we enhanced. is to And make we improve more been

the sometime future, could when recovers, So, back opportunity. capture then that in comes we and the I’d hope that market

as expect not the do we forever. stay So, they to market conditions are

exceed businesses that answer. cost. capital we So, able my concludes when That back, be you. do to will Thank come these believe we then

Futoshi Sasaki

Understood, Kitamura-san.

volatility stock value, first value any for fair possible to regarding value? the fair the then adjusting ACIs, price Regarding lowered? of fair companies, is point, is it If the method be with is in of other line of the there ACI

Takumi Kitamura

as conduct said, actually the could volatility to fair hedging mitigate we -- Well, you value. from ACI’s the we could


Citigroup question Niwa-san. next from is The Securities,

Koichi Niwa

Retail, and CETX Regarding please.

KGI, be buybacks, the it subside, per achieve CETX to is ago building is to a from going at weak. KGI. outside, earlier, generate the from well. And conduct considering with ago. of you or factors USPS with My revenue explain to of the market three from three in as businesses in is and being shareholder the overlaps you factors? to the like generate explain billion up to shareholder the the in flow then to And you And And for Are of are able room is second months this good, going progress the you. -- big above point. of there the explaining thank terms share be seems review to revenues moment But thorough And the about the somewhat previous detail for due this Retail, going finalization, is So, outside XX.X%. return Japan reason order -- structure to to should And you ¥XX.X the be of going a flow gap the XX%? months if could Basel And a what cost but your you quite mentioned you is suspending CETX KPIs, that changes For ratio could the as not there this? please? forward, recurring there please? reason about you peers to seems market your do quarter the Nomura? you for -- return? be your And impact after the be Thank but much question used

Takumi Kitamura

Kitamura. you Thank This your is for question.

focusing course, revenue. And out, partners continue We necessary want growing pointed are we we And cost. want review in to you it do continuing products have we to one strength is clients. not these should the sure they on And on back, any are But, more rates we charge comes in the and management. segment, the aware business. revenue. is that’s the not And in the And fully we’ll July, buy the in propose in case. directors our this is when would we the cost proposing up given basis. up products customers appointed very recent XXX that flow is the this. we and within net flow very right customers the And is and to July for to And sharing interest our record products, segment make these and customer and onwards. customers. wider to we worth product the And the product as Nomura. And is we to it’s affluent structure, the was U.S., to to decide revenues, segment, are it the grow have the this marketing our the flow the sales of on is high provide and pick and our segment, of the products that provide like right and want propose owners momentum the when important focus division. or a to think of revenue up billion, flow our a right more each And to portfolio the customers, important. mass but to lot with key biggest can improve provide of amount to in are customers, TMCC timing of not. again. And our reached the ¥ the our April And on level so market product the at focusing important. services working has right And for onwards, The the right of our And have a high we we understanding yen are whether to weakening corporate to range in make proposals people, sales in and the a which to monthly to investors recommend rise we

and very have or alliances we have area performance. another division the are in co-working capture and we relying digital to like with -- all In company are is sorts But on April doing them the And company set focused focus. revenue. past, announced Recently, of human resources, we activities. two were two our flow up this Retail face-to-face we’d we and terms another important with grow is -- the these the well -- digital there we this alliances contact a customers. and been of year, in also on digitalization on year, to with others have So, is point our from of opportunities have efforts,

the make So, as and clients these alliances touch to of well points expand use we will with our investors.

that And of higher there factor, was market and RWA. bit the at second risk the increase. weakening the factor to was decline. Well, the another question higher you capital numerator can main the yen. and look see assets one was different the Your a the that for factor. the ratio for And was also we That about and including And if you was denominator, at volatility. CETX. the the period led the CETX looked reason And weighted that reason

or at or we from this X% past, after from the of what the increase build-up happens FRTB different hasn’t introduction FRTB? all been so of level Well, the weighted these moment, as the was to is trillion or really So, of assets. in it Basel have which ¥X led the a impact showing X% the factors, to the finalization accumulation question after that -- changed risk And much.

the such question? continue the and to the that will mitigate Did model internal answer measures of easing implement effects. your implementation we So,

Koichi Niwa

Thank you. Yes.


Jefferies. Mr. from comes question Next of Ban

Hideyasu Ban

three value is have PBT turned one fair you valuation but fair the you regarding to it earlier, hedge that to or point? performance? Sasaki-san could value fair your you there And you according are Earlier, but But share But with secured impact operations plan value other me ACI. can value, quite this valuations valuations be the and explanation. barely hedging that than -- such you is other -- segments, mitigate so business, your the your EPS portion considering, out for segments, stabilize Is for can the possible ROE profit, the other that fair about and volatile. for I three just to asked reduce you any for by the the conduct affected mentioned this, anything quarterly question. for volatility operations at you

Takumi Kitamura

held small, to In areas quite but peers, came our shares securities compared that or from is other position the had fair valuation lot a investment securities, than impacted in our business, strategically smaller. value

are we mark market securities, investment to the conducting For valuation.

So, P&L impact. there’s

shares Some reduce absolute strategically would we held the approaches reflect on But sell-off. not of to amount to like use the and that through P&L directly capital.

accounting error this Another before before as sure conducted regarding transactions bonds hedge explained issued not to hedging, risks, of that extent the of have kind thing we to tracking treatment. counterparties, perform this, like with they the market. what being mark hedge I external not to order valuation, we I’m are XXXX economic issued bonds but but have is In we XXXX.

hand, the to other market the On hedging positions, we are mark the conducting valuation.

there misalignment a there. So, is

So accounting there economically, but is hedging, that’s terms, we conducting mismatch are arising.

bonds hedging before the but economic the we time have value said what XXXX after applying fair is started that’s item for for I about valuation. this. XXXX, So,

or mitigated. hedging reduced. to bonds for And when they we addressing been will transactions the that believe volatility for the needed come has the fluctuation be issued then before So, the are volatility XXXX, maturity,

So, over economic the manageable. become hedging time, impact on will our performance more

Hideyasu Ban

the you Thank explanation. for

Takumi Kitamura

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