NMR - Earnings call transcript Q1 2022

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Takumi Kitamura

Good evening. This is Takumi Kitamura, CFO of Nomura Holdings.

Now on our First Quarter Results of the Fiscal Year Ending March 2022, I'm using the document titled consolidated results of operations. Please turn to Page 2. Net revenue increased 108% quarter-on-quarter to ¥353.3 billion, while income for income taxes improved to ¥78.5 billion, as shown on the top right. income quarter ¥XX.X reasons. due before a recovering income last loss to segment taxes billion, was from Three two main

Investment Last last Wholesale April contribution; in quarter by of was Management made billion a quarter's Research Real we this ROE -- First, last significant no impairment US with and from in a part client of again this an of gain was impacted and realized and our That we but improved. performance year charge second, transactions Wholesale Institute. quarter, Holdings. performance the ¥XX.X billion, established billion, annualized continued. loss. exited income representing sale taxes strong Nomura momentum while longer was all Nomura quarter, grew in revenue June, quarter-on-quarter, income was around of our also ¥XX.X we increase X.X%, before quarter, Investment an this positions a in Segment ¥XX.XX EPS Banking billion ¥XXX ¥XX.X booked income present billion was was of income in ¥XX.X ¥XX.XX. the booked Estate Net May. stake from Fixed Other in

Sorry.

in wave early to assets. make due this, a each with on net down XX% business, X. Retail remained look let's stocks another efforts in to the to equity Despite of down May, billion. investment pushing expand progress pandemic slump sales markets continued sidelines we the trusts. Retail the clients while quarter and closer to on and revenue in client our of Retail income starting first ¥XX XX% tax is Now, Page declined billion, take before at income to ¥XX

year of hit was and had client when out and inflows Discretionary while, the investment trust of on right up last net trillion. Page quarter services; shown right, assets the we high ¥XXX this X marking This trillion we revenue Growth CIO shows reported billion. highest in started ¥XX.X revenue billion, but monitoring we to As ¥XX.X on given is services, that the bottoming started was ¥XX.X down billion, investments assets inflows billion, levels with quarter, record ¥XXX indicators. top factors of securities a another right of lift of clients trending to November positive The been purchases. representing retail at cash and since top consulting-related of net these a introduced net bottom the market net active recurring to but left bottom shown to ¥XX.X shown the XXX,XXX. on and to inflows the number revenue, recurring restrictions of trending sluggish the smoothly combined for face-to-face

Now Page X.

know, graph The you the shows Banking reclassification Asset we As on division created new Merchant and Management new under it figures held for comparisons. disclosure revenues, Asset equity Century format past of Business Management Babcock the Investment the Investment the revenue left on may to make Investment Management gain/loss a mark-to-market gain/loss the divisions and business. April top gain/loss the dissolved easier American here such as from securities the investment Management. & Investments, Brown's includes and under relatively leasing stable and to gain/loss, private includes for aircraft related Nomura X. business

this changes and is on value investment such, depending subject exits. fair fluctuation As in figure to

realized which investment X% billion. ¥XX.X timing Business ¥XX and was at to ¥XX.X there overlap billion, rise meant in an billion, booked First was before gains of the gain/loss grew performance the This extra March in down gain/loss, revenue billion this billion In Nomura investee the over XX% ¥XX.X billion. Capital quarter, related company in XX% fees, IPO Investment quarter June. Partners the last performance in came Management of We net a a ¥XX at increased total taxes was at of XX% which performance unrealized January was revenue on around quarter. to to income there quarter. last while ACI quarter. end ¥XX by booked fees income of contributed recognizing driven

ETFs assets on inflows shows high management the The fees under management business were of graph As right of into at to left. assets assets bottom management, ¥XXX Please for alternative business and had trust boosted bank the and steadily X. the which turn graph advisory breakdown this provides Core the turned been investment which under have in the trust fund asset business, quarter, increase to we at record positive of investment on the the A on on centered billion Wealth top quarter, trillion wraps, quarter, the a X giving on left left, through ESG-related inflows ¥XX.X under trust and increased. Page investment shown end turn to the right. Inflows management. to and bottom bottom which investment and total to Page the due an Wholesale. international showed and is ¥XXX our saw this flows, partly shows grown last shown channel billion. Square, negative inflows for but on exclude The products, Please line top June. MRFs,

As shown billion. and net revenue on ¥XXX.X the loss ¥XX.X income was before taxes left, top billion, was

trading equities ¥XX.X regional booked ¥XX.X with an largely as Americas earlier, billion affected. of As a bottom this, by the performance in booked remaining revenue was US I said client. arising Of and additional revenues, the loss billion loss a shows provisions net as ¥X.X on loan was transactions significantly from breakdown in of was left The the expenses. was loss billion impacted

EMEA excluding trading and X%, trading Please US in breakdown by Japan and for the XX net a quarter-on-quarter, to volatility to a last and rates. due declining a Page driven Markets business in to line. revenue related improved Cash Global billion, slowed from lower revenues slowed revenues turn While ¥XX.X to with both Derivatives delivered quarter transactions loss volumes. Equities by client. drop AEJ steady

Japan, to by spread right AEJ top as Credit down. income such heat strong revenues shows, we quarter, the Credit arrow FX the and Securitized Americas in slowed in the for higher is and Securitized and but good shows into map Products ¥XX.X EM AEJ as Japan in on revenues driven pointing a down. pointing both and map heat the yield. Products. had The performance billion, emerging are the Credit products As increased tapped and Fixed demand

supported M&A turn Next, fundraising shown revenue increased. a diverse deals Investment and page ECM was cross-border XX. this Banking. strong Key third billion, on another quarter. quarter, Net the Please sustainability-related supported We over Greentech. to quarter deals of by range strong ¥XX had revenues revenues driven right. we marking and also with are Nomura multiple ¥XX.X DCM and billion. the

Research. seeing multiple from bottom co-lead We results mandates right. ECM alliance on alliances in are the shown with strategic Wolfe We through manager won Americas,

trillion, billion by last this billion dropped declined risk in benefits in our end provisions show left page for to on and ¥XXX loss Other ¥X table with client financial the about Tier booked overview the Please issuance Our deal rose position. expenses as to the expenses. loan alliance charge non-interest bottom capital XX trillion present The for Compensation earnings billion announced of in market risk a March, an turn US billion New Australia May higher due line lower risk. Total an was of trillion we pay transactions XX at off with Zealand declined from performance. for to ¥X.X to March X related mainly already. got our ¥XX.X to managed retained good as to due also X bonds. ¥XXX.X of turn start and credit affiliate up page ¥XX.X XX%, Please the by and Jarden ¥XX we in and of on from impairment quarter and Tier to to stringently additional due end Risk-weighted not a billion, positions the the drop quarter. assets and first ¥XX.X declined executed expenses as declined non-interest billion. to to XX% about ¥XX volatility,

effective ended one. Recent to will meet strong over the month transformation due prior retail to fees markets. saw slightly make trending grown we Recurring a and XXXX division, company this our by more a driven of continue for key listed, saw but global a where of ratio And above they As annualized slowing X private number in retail to first March normalized revenue has XX.X%, investee by grew an Wholesale in very the year, approach the result, July segment quarter, mix needs strategy year ratio about revenue revenue market, markedly. stable recent the a record in macroeconomic the and billion despite M&A. was on and March contribution April, of expand of private plays strong to strong Management each newly a reached earnings. and conclude, role wave uncertainty trusts were fiscal XXXX. to performance brokerage fiscal basis, markets established That revenues this quarter into pandemic. due has both decline momentum was investments results. the improving our the are a the about from revenue Retail capital today's Tier we clients. financial but has pandemic, into of to maintained concludes and in positive XX.X% quarter ended but equity the in to Investment overview a the XX% of our our accounted investment To high. year our highlighting slowed June-end from Investment a reported before performance discretionary CETX Banking recurring ¥XXX

of such US but and months. basis, restart billion line their and due March prudent remain in spike loss, to market the inflation the central we risk July, activity variant in slower quarter annualized rebalance talk taxes start income on are with related low There prompt lot a the XXXX the as second to full and banks. risks the trending to optimistic. have there gone by the has to ¥XXX tapering Delta macroeconomic wholesale slower muted the ¥XX of been than was has liquidity investors and Excluding first, can a Recent billion the taking to of activities taken out volatility target. portfolios economy, to to and summer a we income an approach off In tend expectations before or our

pursue to pandemic once expect is opportunities. over growth to changes structural and We see push the

sustainable helping unchanged. remains growth to announced last by Our achieve resolve vision issue social year management

We will you the addition next building Thank the and private very focus to markets also to work out to public firm take level. on in much. in

Operator

comes Mr. go question SMBC first the Now Mr. Nikko. ahead. Muraki from of Muraki, please

Masao Muraki

Thank I questions. have you. is two from This Muraki SMBC.

from US peers. left, fixed year-on-year basis the department, market line a revenue in the is XX. on income First, page with Top

liquidity the times, and to for downside? that that was another do US And August, was first question like on goes how content create For if the is what is at looking your My well, report, the than newly evaluate are my exceeded, going That exposure Could the from Also that a risk financial at of your a and elaborate limit report, added. quarter? peers. equities by it second report, But action management. time, bit performance Suisse That if you the limit Credit then risk exceeds that the after the I you was slightly is exposure the outlook? times left compared -- to long is ask of XX of question exceeding than the But immediately more taken. would the pages, enhancement identified away situation limit and XXX more kind the a publicized looking weaker was with first as their question. wording monitored. Yesterday, but cause. of reports, XX appears about be securities by a will

to is also, into credit you. risk enhancement disclose What is risk the of you time what that on as disclosure? Thank you or make the and the escalation before Could are procedure management? procedures place? monitoring put in and those place have frame what your risk, limits of much you case? possible? market And So is as specific breached, in liquidity if kind So the

Takumi Kitamura

you much. is This Thank very Kitamura.

rates peers, we the the rates declined market as So Muraki quarter? it global markets especially regarding our the is to when evaluate The first how question, line normalized. with markets Regarding revenue in in business, performance revenue, business. comes as is your which fixed for our first the US do – in global our core business income, said, Mr.

is market our the underperforming as also revenue normalized. was our That's Equity normalized, business So rates evaluation. somewhat.

XXXX-XXXX not excluding this USA, from XXXX/XXXX are is number that investment the overall impact level anything, incident wholesale's XXXX pandemic, above ¥XX billion. However, compared – now. so billion, line performance bottom that is If the in is ¥XXX FY that as bad. This is banking. the FY includes Annualized with we before

that we So have accumulated the power. means,

in we we on we have daily line USA, environment. the profit. excluding at difficult have But billion acknowledged acknowledge basis, numbers, the bottom looking of a So the incident that – ¥XX

evaluation performance market a is conditions. into now, the our quite So mixed moves outlook future, And was that our there towards is decent. of market the The as the seem views unstable.

it comes We prudent. there But of be being quite risk forward, believe and we some when course, are downs. the will So will bad. environment not that be to taking, ups moving

As of expectation by so the announced in triggered progress and mentioned package there tapering those them administration will economy by be matters. inflation moves earlier, central discussions reopening and infrastructure by and Biden banks, on

will and urge moving be to some there twists factors their will turns rebalance be ahead. But positions. So investors that would there various

forever, that continue easing to invested left especially monetary been be not will of situation current have lots the money created somewhere. So

in we with funds sometime be see invested. such to the start waiting will move future, to the So

Regarding the future risk factors.

variant Delta the of as also result the further spread of deceleration the possible. a and economy that Firstly, is of virus,

So spread on of level have the how widening, the seems conviction are it market's to in the we – down move now. Indian interest market become come yield variant, and consensus quite level of recover expands, Delta as the conviction the But volatile. have depending to they of recovery relation and economic

is infection, with are where risk wouldn't So geopolitical of risk we are the spread although watching naturally. the certain, factor And the off. but market heightened become risks not market we carefully another

my is according our So the I and question, that To management policy, to have about. regarding but individual inquired your you to question. first that lot, second answer your a At spoke limits we risk set. Nomura, procedure

limits. are limits So

there be not are to they breached. So

the risk are exposure, the of plan follow such the have situations, where of is to those Our that based and assets rarely, second and plan can to defense. reduction line cases defense, preset, the time be risk. limit, certain that line there are time, variance. line risk applying various a regarding the But ensuring is there the But rules the types of we what and for to regarding line hedging, the developed But market office, course, with control upon risks. in the breached. reduction, the are of people there's reduce conduct market finance management meaning limits. the risk, escalation. suppressed. By front we risk a liquidity In in are easiest are will will first by But period limits And is credit risk-weighted be of

risk. through probably So market can such measures, address we

On time us rules. mentioned stringent the risk more other as hand, credit address. for But earlier, limits to are takes I

my So then That there case a answer. taken. is Thank action breach, immediate if of concludes is you.

Masao Muraki

you Kitamura. Thank much, Mr. very

my follow-up question, first my question regarding is Regarding risk.

these wholesale true business China been as days, But a risk risks materialize the has mentioned retail in case, possibility You a in risk? risks. geopolitical is in that at China's geopolitical your But or drawing local there regulatory will attention. business

Takumi Kitamura

couple I you. But trended immediately quite last Hong in are and But a acknowledge Kong days, carefully That at business does have it point equities our volatile in equities Chinese not this the Thank we This The manner, affect is is monitoring situation. answer. regarding my of that. matter, this time. Kitamura.

Masao Muraki

clear Thank you Kitamura for answer. very Mr. Thank much, you.

Kazuki Watanabe

ask policy. Daiwa capital like This to from is Securities. Watanabe two questions on I'd

research a is – cash profit in about XX.X%. you billion is share number next there dividends, revenue. CETX shares. by around me the on And can to your First, tell And is institute percentage the thinking buybacks? ¥XX selling a up of And about

has US taken consideration the into the I that incident. think from losses

first me your that of profit what the in? of So be would quarter, could in brought the so would tell the be that thinking level And you dividends? back loss distributable of billion ¥XX

Takumi Kitamura

This is Kitamura. you. Thank

first your buybacks time. think I why question conduct not a share this is we did

point buybacks. had discussions just in At not we and conducting share Now, may, we different be for as we it, some promised time, in quite honestly, will in had sometime made we this if – have future. the we timing I considerations, right the have thought, and is

we Second the the the of incident. loss year, dividend around dividends excluded distributable we the the is had impact and US of last When on end the profit. from distributed and dividends thinking fiscal

consistent, So, fiscal this of did this end differently it what last we if time time, it we will compared not apply be to year.

this difficult actually would that around. treat be So to it time differently

Kazuki Watanabe

Wantanabe. is This

confirmation. a Just

you cash So, billion, even considerations incident? sale if had from of NRI JPYXX from around, in you making I U.S. be think, would loss the that

Takumi Kitamura

that making we yes, consideration. will So be

Kazuki Watanabe

you Thank very much.

Wataru Otsuka

from is JP Thank Securities. Morgan Otsuka you. This

question first the My questions. two have about page I X. is So

is So, this look ask at to is about. I numbers way want The a new disclosure. to the what

it's have is but So I'm without about sure Nomura Consulting would Plus this IPO of have previous mentioned, billion. portion, thinking first The IPO this have JPYXX my revenue been billion number looking the lower number? believe at the way that the Partners portion, lower of not is gain. quarter. billion, or this this investees than JPYXX of been previous everything, -- this I number time, the right gain/loss then Is Capital might is been compared with this it this Alpha from the JPYXX IPO than could quarter's question. This number

Takumi Kitamura

Kitamura. is you. billion investment JPYXX.X the is This gain. Thank

previous course, pointed investment the the we out. billion, JPYXX.X exclude previous or billion, number number, Merchant quarter, remaining partially Banking includes as department's you short numbers. former In if So, a quarter. of will then the smaller Actually, gain, be in JPYXX markup this the the

JPYXX.X deducted from apple So that billion, we number apple and not to billion is JPYXX comparison. this JPYXX – that have,

what then division, disclosed so to as ACI Management booked number back billion lines. or go the you if Asset JPYXX was So of gains report, financial ACI was previous to previously was

I your previously. gain, investment hope the question. in included was number I remaining other The answered

Wataru Otsuka

much. clear. very was you thank That Yes,

question about page the move Let second personnel XX on is My about next to me question. expense.

on numbers there improvement. as basis Q-on-Q on the you the unfortunately, we if been recent and a three loss depending But profit quarter the performance, related most loss, second this personnel expense segments revenue that income? US incident pre-tax has that then, is is with to quarter excluding from -- it the linked quarter sorry, show I previous a this And down, in So, take this an compared is believe.

Takumi Kitamura

this speaking. you, Kitamura is Thank

expense, difficult because expense in quarterly quarterly quarter. technical at on some well, of involved, especially factors to basis, the fourth the look on it's basis a Regarding personnel a personnel

quarter-on-quarter your Compared effect. big For could example, Change something to that situation. our – have model. match is the quarter, model doesn't bonus bonus or concentrated previous with comparison a analysis

much during as of of course, possible year out the an other But there the is revenue rule important to volatility factors. factors course, or as well. bonus that, such we is as fiscal considered the Of special however period, trying thinking are cannot about equalize our also, we are P&L, And factor.

So is factors the also And that in involved. technical are especially not Q-on-Q accounting first quarter, easy. comparison

in As you impact to know, deferred from first the And compensation is accounting employees. tends quarter. that concentrate granted to our

expense first and the factor So look quarter a tends there also of personnel big, other weak is and factors. to Yen Japanese

but So various my here. involved factors there answer not that are straightforward, is

Wataru Otsuka

Thank Mr. Kitamura. Okay. the expense X, page ratio you, XXX%. Then

this incident So is then you bit a high XX% factors linked and it's ratio to the around excluded, US mentioned. the that's but

So, the it's and tricky? volatile

Takumi Kitamura

Yes. speaking. Kitamura

line Wholesales cost a percentage middle a year the the itself, factors income ratio various So, the full and – expense Mr. that volatile, as in that we is the with KPI should take KPI, ratio of is quarter-on-quarter, look Wholesale. XX%. is of the in This so XX% number calculated ratio income Otsuka But number. excluding or at quarter,

Wataru Otsuka

Thank you Mr. very the for clear much, Kitamura answer.

Operator

UFJ comes question Morgan Mitsubishi from Ms. Stanley, Tsujino. next The

Natsumu Tsujino

market the contents down. the average has what market question division. what's we compared the time, come situation fixed to to you expect can equity, worse question. continue? much I the second the peers, not US on, are we improvement, at when did be you're can to Can If doing Should than in say, different when so for situation that question, you But that areas my going it please? one-on-one? first that were a And of with at could and see look the this that you income, on have what into equity that And on the First, year, last And the US so do would comparing situation, that. talk so equity, you or areas I we look look expect about reply basically, we you do quarter, last products, year?

Takumi Kitamura

This is Kitamura.

clients, There's rest streams global and we -- of from So there's market flows. revenue clients, the so of have coming revenues. revenues two from

trading XX%. And we year. there volatility about that. look when were to to So When the as because in we bonds volume is declined that the components a are at we at trading at. two result, somewhat compared look revenue look last has of client the last And compared government year, low down

ask bid, the yes, So lower. is

And curve been set. a a return time has it is revenue, been seen where that the we've factors, have an trade. quarter, this direction -- activities get been been this our first in that macro this is And the And not risk environment clients. that we quarter, have hasn't we lower yield the of revenue activities, middle to of trading the -- So of of the around, from lower because able replacement given of environment.

direction the will Moving yield mixed. that I've be mentioned rates interest the rates be and spread. But as are of inflation trend will be expansion of the mixed, would probably overall there the and the forward, the

And be environment it business, especially we where around to we it. that should So will in a see how business in that better is fixed environment, have be our fixed able especially an income. income, for

biggest the think be tapering. catalyst I would So,

Natsumu Tsujino

Tsujino. is This

we higher. income, US you when done so thought at look fixed So, have I earnings, could your peers' or for that better

compared there concern to to is peers, anything is the that you? So of

Takumi Kitamura

we're It US Kitamura. happens year. of sort with that so what did just is sharing similarly peers last the This

quarter, and well. first they look when did the at we the we credit, products securitized as Now look at

think as a other business, that more job. rates our has pronounced strength On in faring we hand, us, done as And been that or for in year. even we've this core our relatively performance peers, slowdown could US I the the good environment, say well our

Natsumu Tsujino

evaluate is The gain I unrealized much. unrealized should plus that of the are valuation gains the realized be going you in more gain the gain against so canceling the unrealized think distributable of realized we and to I so are kind will gain, portion said -- when we think thinking very earnings, and from you -- a fluctuation there this is it mean, your from you in distributable There of what fluctuation are that? don't for gain US around I loss. and there of profits? the ACI, gains, than earnings, a realized temporary Thank what unrealized incident is your this But unrealized dividend. ACI, and thinking is -- And a how Tsujino. in is actual the the dividend This alpha, profit of and volatility see be part since

Takumi Kitamura

is Kitamura. This

I gains and to unrealized your was the the ACI think first around how P&L. around So, think we impact question about our

AUM the increased they when expanding. been that know market could so why the to we extent increase also regarding I earnings inflows. reason AUM at are consideration there. have what don't we But ACI, on we is the non-listed sort we a of Now company, I There And moving take ACI's valuation, look have is factors. they And since earnings, our what comment valuation into expect of their forward. for in this. by There are

valuation, we are not the I ACI, non-listed conservative. So a be there. there quite make And the is an it of unrealized is mentioned, straightforward. valuation it as may ACI, company But therefore, when evaluating gain we

ask do. what it's proof they bit that -- if a it is difficult course, a Of to you

conservative. entities, we we when at sort the our look even -- that party quite way are do we think we is Now evaluate ACI of third valuation

Now I the around your question. was thinking that dividends, think second

I've P&L, course, will explaining. core course, since performance of stabilize of basic of market, Now important. -- to we part are is as earnings, That be striving been matter, our to are return, revenues. a we our of thinking what stabilize our that, fluctuations of And be our in shareholder linked is the there around that's course, course, our the that with business of but

as also stable possible as is to make returns important. In that, to addition dividend

So that and taken comprehensive our on we in manner, how has that been a amount. is dividend decide

the want in is But very be there stable we stable able much. to – P&L, be as dividend our earnings we make you that Thank there as would fluctuations fluctuation since Now our a on much there is inevitably. large payments possible. thinking to

Futoshi Sasaki

Thank you. from Sasaki This is of Bank America.

to So questions. please of each my answer

mentioned after comment And First on After you retail about question of July. is wholesale, you the retail. the current situation the also first What due last situation? of is situation the didn't in quarter the July, current current so year. in quarter first looking at the as performance, was to in and sales year, the last first stopped same the but level total activities quarter the sales the COVID,

So how situation? the do you current evaluate

Takumi Kitamura

but and about the slow approach our on is clients' that, a Thank retail you is to thought I of This so other that's there off that, start been Kitamura. COVID the situation, me is in or for question. the division type by that. concerns situation July; repeat I of assets, the uncertainty the in initiatives as is the infections to retail touched about hand, expand our macroeconomic customers of July The upon let follows: because of the spread focus.

in have investment enjoyed continuously and investment discretionary inflow. services net July, even the So trusts

Futoshi Sasaki

Mr. first you, quarter, the total there Then was the factor regarding level sales Kitamura. QX? sales of in Thank that any level in total impacted special the

Takumi Kitamura

equities, This were slow. first the is especially the customers by the of declined on And the because total our XX% sidelines. staying quarter, customers' sales, Kitamura. the In activities

However, our manner. in business significant transformed being model a is

single-mindedly are we clients. on focused of assets the expanding So

market, with not, we we that will continue of the But see initiatives, then we satisfied came the some decline with are situation. avoidable. the a not course, from certain our result, juncture. a And As once extent, support of have But to in as what necessarily, recovery. we was happened

Futoshi Sasaki

Kitamura. Thank you, Mr.

family that you've them? there business, a in way Now implemented, conduct the incident, a has wholesale offices, as you single-family discussed. challenge. Nomura, was especially with and the been has your been have are the changes transactions business believe, there offices? that, with in any I been with loss US Regarding But to changed has But regulatory tightening

Takumi Kitamura

you. speaking. Thank This is Kitamura

say huge various family and singular Nomura's needs and cannot We comment. have all products. assets. And on of clients making we their asset to our and the Family family of offices, management terms many on end the global that financing, Regarding offices the proposals there and make in generalize Nomura's are family – blame. capabilities of offices a family platform cannot office are

those clients. are believe, in we So needs appropriate those of the satisfying services of ours,

On the institutional office much clients. with obtain that only is family can regular investors, the investors, other hand, we information there compared from so

we the to do can So obtain we we managing risks. do will best clients, what from we office can will information and in them, family

this there our were management. time, So in exposed weaknesses risk

continue So management that, we certain would like risk to services. strengthening providing by frameworks, regarding

So – trend. discussed, market that. if regarding favorable. end But But tightening I'm to due urges to cannot will Then the we aware what the speaking, going offices and something to control trend, result? is up become directly. the regulatory then regarding the it's more, Honestly be family being regulatory regulatory keep we regulatory tightening disclose monitoring open the will the more of

Futoshi Sasaki

Kitamura. Mr. you, Thank

in impact? revenue you've in Regarding would How your be future, in the that downsized or your there some the brokerages I prime regions. prime brokerage some no believe regions, hit will

Takumi Kitamura

the it itself, positioned supporting role is This overall brokerage is business business. PB, as to The Kitamura. the playing prime equity

Nomura business have might derivatives. Asian limited. equities brokerage prime is equity and Japan in on has the downsized, our impact been US performance but strength some So and equities

we businesses. continuing For areas, be those by will risk refined having with the management, those

will performance on you. sense, business that or be in limited. impact Thank So our the

Futoshi Sasaki

answer. Kitamura Thank you, for Mr. your

Koichi Niwa

the the there. the Page This to personnel on management haven't of and investment question is unrealized is area what two thinking bottom the gain My alternative disclosed expenses. the you related IRR, have and is questions the around right AUM in investments, X, Niwa. that in I

much is from the and unrealized vintage. how So investment the period gain there,

gain and level a this to this seen see in So, capital you expense. quarter, about expense the expect the is is that first gain question acquire capital something talking is as forward level regularly talent personnel you've that international moving personnel Next well? around -- and to

troubles and which are think the people when retain that, how to other to doing the -- costs, or of the recruits, with you new increased new the is you are how them? tolerate that it and what -- -- think seems So, would and having higher going all to are joiners for increasing, the about companies be posing a having pressure that that seems you it outflow when on pressure niche we compensation

Takumi Kitamura

first On Kitamura. This your is question.

the profit I to So area, products. from -- on alternative alternative from, investments, our AUM, the not came area. that assets the will alternative clients' On the investment we are investing large we mean,

So the profit. and X know could bit a the much from that business, it's are we how coming is difficult Banking Merchant expect. a profits different to If

is could an Now, we markup see if this of of from the there course exiting way. would when position, profits we and

say what expect it we or could was So How to is level. the difficult moving forward. much what

second costs So, the point, on. newspaper at -- that difficult see young talent. comment And on On look when we to newspaper companies compensation gaining reports, expense increasing we your personnel is are something and to talent. that capture

their and what we retain they are think talent, need important doing what's fair our So a I to evaluation give what to contribution. most of is

conducting the and has growth, return I and And think their growth, where provide to that a diversity, growth, opportunities, most expectation support to provide been career their capability working that And to we can employees. or have place, to high to opportunities, you to platform the engagement education training place provide increase with of to is and their flourish. a things people career to expect important.

by retaining by different that, surveys different been talent. an -- engagement intend So, But course, And retain of well. conducting and attracting is or implementing attract we've and to wage, talent. compensation initiatives, talent to in important factor we salary, as in addition

hand, people role past. of is other changing just the employees compared to so more the or quite bigger the substantially, a picture, On

necessary people people. but will replaced needless company, That mean, -- they we I future attract capital that could by that, to changing to, in the need be a and for well. say, to understand what that important things be expect change very is, what replaced. to Now, need could We and as human what don't is that do, to need

answer think a I think rise about Did your that, possible to question? it when So, some is cost to extent. personnel control I we

Koichi Niwa

your to need changed? looking part, this of peers, look XX%, up. your at doesn't on you at to I'd further question a when be ask like that medium-term latter your profitability new Even

Takumi Kitamura

change target. no Kitamura. is No, to that This intention

Koichi Niwa

This is you Niwa. very Thank much.

Takumi Kitamura

Also, way, others And today. up, your or working This equities quarter, are growth. sowing first we decent. But stabilizing for are And to of result moves are on down. ups we expansion for invest some time going haven't starting in I much time as the a There seeds not downs, assets. about of example, entity out we show had we there positive Thank you for talk in items such the are is I today, also, this, and future very our enhancement Kitamura. are some was as of effectiveness. in establishing going centers. are on reflected came some revenue, the And believe to private though it's there P&L, contact we but believe, working and client activities are to enrichment for are

contribute bottom that effort I new utmost thank Thank to make support. these very for grow We and continued would line today. to so you our and So, will start bear and your the to you, your they activities, you ask and see. much, fruit, that time for profit like

Nomura (NMR) 1 Aug 212022 Q1 Earnings call transcript