Nomura Q2 2024 Earnings Call Transcript

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October 27, 2023

There are 2 speakers on the call.

Operator

Good day, everyone, and welcome to today's Nomura Holdings Second Quarter Operating Results for Fiscal Year Ending March 2020 for 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? 19 all these presentations. Credit, which involve no from the reasons.

Operator

Such Q3. We would like to begin speculation growth amid this environment by the Japan Stock Market investment As a result, stable business revenue increased by gain in revenue and recorded a revenue increase of 24%. However, as the recent revenues declined, contracted costs and income before income taxes declined 10.4 1,000,000,000 today. 2nd quarter results. Please turn to Page 3.

Operator

Net revenues increased 5% to RMB367,800,000,000 3% to JPY 56,700,000,000. The income was up 21% at JPY 35,200,000,000 EPS 100 and 87 percent to

Speaker 1

64,000,000,000. As shown on the bottom right,

Operator

all divisions reported stronger pre tax income. Point 7 percent to 29,000,000,000, both representing the strongest results in 6 years since the October to December quarter in 2017. Q1 of our KPIs across all products and services during the quarter.

Speaker 1

During the quarter, we've got a few

Operator

of €38,900,000,000 gaining 70% and expenses of 21%, have been reclassified to make comparisons possible. Sales of stock. Recurring revenue assets shown on the top right were roughly 1,000,000,000,000 throughout the quarter, driving strong growth in recurring revenues as represented by the red line. The

Speaker 1

bottom

Operator

significantly increasing sales partners in the high net worth space given our approach to clients we would sufficiently Q2 in the past, Eastern Division and for Investment Management.

Speaker 1

JPY 480,000,000,000 quarter to EUR 8,300,000,000. Please turn to Page 12 for the update on each business line. 3rd KMT Holdings. In the CMO, we supported mainly fundraising transactions including the green bond issuance by NTT Finance and the bond issuance JPY 11,000,000,000. Compensation and benefits were up above and set up JPY 116,100,000,000.

Speaker 1

2,000,000,000,000 yen both up from the end of June. As a result, our Tier 1 capital ratio deficit index was 18.6% and our CET1 Capital ratio was 16.5%, roughly unchanged from year to year and highlighting that we continue to hold all those still a relatively small business. 14 years to grow business. So I'm not sure whether that is revenues trending in line with the 2nd quarter. International Markets closing.

Speaker 1

No, we remain on the order. We will continue to strategically manage our customers when we work to expand our earnings. Thank you.

Operator

If we have a question,

Speaker 1

question is by Nikkyi, J. Morgan Stanley Securities,

Operator

Tsujino san. Please go ahead. Thank you very much. Thank you very much, first of all. International severance related expenses had been booked.

Operator

Can you quantify the impact and how will it impact personal expenses in the coming quarters? So that is my first question. For other real estate related expenses, telecommunications. I see that expenses are more gradually, partly impacted by the exchange rate. Revenue is growing, but at the same time, expenses are growing as well.

Operator

So can you give us the outlook for the future direction? For? Those are my questions for the time being.

Speaker 1

Two questions. Hi, Mr. Paul.

Operator

Thank you very much. For a few months after the communication. So it's not the Keesed. After communication, the expenses will go down immediately. So we are hopeful that the impact will begin to be realized from the Q3 and the conducting a study so that we can suppress the real estate expenses as well.

Operator

Q1. We are pressing forward that we will be scaling down your operations. 2,

Speaker 1

we for business to

Operator

engage in constructive discussions with our partner. Thank you very much.

Speaker 1

I'm Benoit from BZY. I have 2 questions. 1st, Page 12, market departments revenue streams. July, for and the size of assets and other attributes. So, one

Operator

of the

Speaker 1

main clients contribute to that increasing inflow and also closing transaction clients are increasing. 2019. Steve, could you give some more colors? Thank you. Our clients, that's where the upside is being generated.

Speaker 1

Thank you. Thank you very much. So you found it highly in your presentation and as high level from high level perspective are being refocusing to Retail and Investment Management. So is there that kind of opportunity? How should I think about this?

Speaker 1

2019. Yes, we have some money right? The return to choose as I always

Operator

retail personnel, 1600 yen who have been reallocated are being utilized 100%. Krems. You said that they weren't fully in operation in April, but what about July September quarter. And on

Speaker 1

Page 8,

Operator

you have the recurring revenue asset recurring revenue is the actual which is higher than the 86% goal and you have been looking at revenues as you decide on hiring. Are you progressing with the recruitment as planned for GM? Have

Speaker 1

2019. 3,000,000,000,000 yen

Operator

as we have pointed out. 4. I have a follow-up question. First of all, on recurring revenue, faster and for Q3 it will be around the same and second half.

Speaker 1

Green. Product for fiscal year 2018,

Operator

but we are trying to make earnings there as well. Thank you very much. Well understood. Thank you. Now we will continue to see as we

Speaker 1

about 2019. Thank you very much. Brokerage fee is flat. It's about 5,400,000 accounts, but in the second quarter, this environment and reallocation of low 2019 clients. We are looking to note that we have a lot of clients.

Operator

The next question from Citigroup Securities. Please go ahead. 8% to 10% in your midterm plan and capital cost 8%. Q1. So if you have done any analysis on the use of risk assets, please share some analysis with us.

Speaker 1

You're right.

Operator

That is and in Q4.

Speaker 1

Yes, caused by the market environment.

Operator

Sure. And therefore, that is probably impacting

Speaker 1

is

Operator

significant risk control to

Speaker 1

25.

Operator

Thank you for commenting on something that might have been difficult for you to comment. Thank you. Nodal Holdings.

Speaker 1

2019, so that we can rate the AIG of 2020. Sharing for us. Thank you for your time today. Thank you.

Operator

And that concludes

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Earnings Conference Call
Nomura Q2 2024
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