Nomura Q1 2026 Earnings Call Transcript

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July 29, 2025

Key Takeaways

  • Positive Sentiment: Group net revenue rose 16% to JPY 523.3 billion, income before taxes grew 64% to JPY 160.3 billion and net income climbed 45% to JPY 104.6 billion, delivering an EPS of JPY 34.04 and an annualized ROE of 12%, the highest since FY 2020/21.
  • Positive Sentiment: All four divisions—Wealth Management, Investment Management, Wholesale and the newly formed Banking—posted sequential revenue and profit growth, with Wealth Management recording net inflows for the 13th straight quarter and a record AUM of JPY 94.3 trillion.
  • Neutral Sentiment: Investment Banking revenue fell 27% from the prior quarter after an exceptionally strong Q4 but remained the highest first‐quarter result since FY 16/17, supported by robust M&A advisory activity in Japan.
  • Neutral Sentiment: The Common Equity Tier 1 ratio was 13.2%, within the 11–14% target range, despite higher risk‐weighted assets from normal business activities and the pending acquisition of Macquarie’s U.S. asset management arm.
  • Negative Sentiment: Nomura incurred JPY 6.6 billion in Q1 expenses to compensate clients for phishing scam losses and plans to implement enhanced security measures, including passkey authentication, this fall.
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Earnings Conference Call
Nomura Q1 2026
00:00 / 00:00

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Operator

Good day, everyone, and welcome to today's Nomura Holdings First Quarter Operating Results for Fiscal Year Ended March 2026 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.

Operator

Please note that this telephone conference contains certain forward looking statements and other projected results, which involve known and unknown risks, delays, uncertainties and other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these projections. Such factors include economic and market conditions, political events and investors' henchmen, liquidity of secondary markets, level and volatility of interest rates, currency exchange rates, security valuations, competitive conditions and size, number and timing of transactions. With that, we'd like to begin the conference. Mr. Hiroyuki Moriuchi, Chief Financial Officer. Please go ahead.

Moderator

Moriuchi, CFO speaking. Thank you very much for joining us this evening. Let me brief you on the results of operations for the first quarter. First of all, please turn to Page two of the document. This is a page on the executive summary.

Moderator

Group net revenue came in at JPY 523,300,000,000.0, up 16% over last quarter. Income before income taxes grew 64% to 160,300,000,000.0, while net income was JPY 104,600,000,000.0, an increase of 45% compared with last quarter. The introduction of reciprocal tariffs for The United States and increase in geopolitical risk led to an uncertain market environment, but all four divisions including the newly established banking division achieved growth in both revenues and profits compared with last quarter. In addition, the sale of fixed assets by Nomura Properties announced last quarter contributed to income before income taxes of around JPY56 billion in the first quarter. As a result, EPS was JPY 34.04 and annualized ROE was 12%.

Moderator

Next, let's look at the performance of each business starting with Wealth Management on Page five. Wealth Management first quarter net revenue increased 6% to JPY105.8 billion and income before income taxes rose 8% to JPY38.8 billion. Despite the stock market's sharp decline in April, the provision of consulting services tailored to clients' needs resulted in an increase in primary bond sales and secondary stock transactions that captured market fluctuation and flow revenue, etcetera, grew 16%, partly owing to the newly established Japan Stock Investment Fund. Recurring revenue assets saw a net inflow for the thirteenth consecutive quarter. Meanwhile, the recurring revenue cost coverage ratio over the last four quarters reached a high level of 69% owing to our efforts to keep costs down.

Moderator

Please turn to Page six for an update on total sales by product. Total sales increased 24% to JPY 6,700,000,000,000.0. Sales of stock rose sharply compared with the previous quarter, partly owing to a tender offer worth more than JPY 1,000,000,000,000. Sales of bonds increased 42% owing to large primary transactions including unsecured SoftBank Group corporate bonds. We will now look at KPIs on Page seven.

Moderator

As shown on the top left, recurring revenue assets saw a net inflow for the thirteenth consecutive quarter at JPY278.9 billion. Meanwhile, as shown on the top right, recurring revenue declined versus the previous quarter. This was because of a decline in recurring revenue assets during the quarter as a result of the decline in stock prices in April and because of the absence of investment advisory fees in the first quarter, which are collected on a half yearly basis. However, owing to the net inflows of recurring revenue assets and market recovery, recurring revenue assets recovered to JPY 24,600,000,000,000.0 at the June. Next, please turn to Page eight for Investment Management.

Moderator

Net revenue was up 18 to JPY 50,600,000,000.0, while income before income taxes rose 39% to 21,500,000,000.0 yen As you can see on the bottom left, investment gain and loss improved sharply quarter on quarter to 9,900,000,000.0 yen This reflected an improvement in investment related to American Century Investments and driven by private equity investment from Nomura Capital Partners. Business revenue fell 6% owing to a decline in Nomura Babcock and Brown net revenues and the lower performance fee compared to the previous quarter, but asset management fees which make up the line's share of business revenue remained solid. Please turn to Page nine for an update on the asset management business, which is the key source of business revenue. As you can see on the top left of the page, assets under management at the June hit a record high level of JPY94.3 trillion owing to market recovery. Net inflows came to around 108,000,000,000 yen as shown on the bottom left with net outflows from the investment trust business totaling around $2.00 7,000,000,000 yen and net inflows to the investment advisory and international businesses of around JPY315 billion.

Moderator

In the investment trust business, investment trusts excluding ETFs and MRFs saw net inflows of around JPY280 billion driven by newly established Japanese equity investment funds, while ETFs saw outflows of approximately JPY670 billion. These ETFs outflows are presumed to be due to selling by certain investors, individuals waiting to reinvest and profit taking. Despite net outflows related to global equities, the investment advisory and international businesses saw net inflows owing to inflows into yen bonds and international high yield bonds. As you can see in the bottom right, we continue to build out our private asset businesses steadily while the yen strengthened during the quarter. Alternative assets under management reached a record high, driven by continued growth in net inflows.

Moderator

Please turn to Page 10 for Wholesale. Wholesale net revenue rose 1% to JPY261.1 billion and income before income taxes increased 12 to 41,900,000,000.0 yen Global markets revenues increased 8% and investment banking revenues fell 27% dropping back after strong Q4 performance, but still reached the highest level for Q1 since fiscal year twenty sixteen and 2017, the first fiscal year for which a comparison is possible. Please turn to Page 11 for an update on business line performance.

Moderator

Firstly, Global Markets net revenue increased 8% to JPY 2 and 23,100,000,000.0. Fixed income net revenue was up 18% at 124,800,000,000.0 yen Let's look at product breakdown. In macro products, rates successfully monetized the increased market volatility and client flows resulting in substantial revenue growth in Europe. FX emerging revenues rose sharply in Asia. In spread products, credit revenues grew in Japan and Europe as the business successfully captured client flows and the securitized products maintained a strong momentum driven mainly by originations in The U.

Moderator

S. Equities net revenue fell 3% to JPY98.3 billion. Equity products net revenue was driven by strong performance in derivatives business in The Americas. Execution services revenue fell following a strong performance in The Americas in the previous quarter. Please turn to Page 12 for Investment Banking.

Moderator

Net revenue was JPY 37,900,000,000.0, down 27% from the previous quarter when performance was particularly favorable. That said, as seen on the bottom right, it was the highest amount on record for the first quarter of the fiscal year based on the comparable data going back to fiscal year twenty sixteen-twenty seventeen, net revenue was driven by business in Japan reflecting ongoing efforts at companies in Japan to improve capital efficiency and achieve growth. By product in advisory, many M and A deals chiefly in Japan were announced and completed including deals expected to be profitable after the second quarter. In the league tables from the period from January through the June this year, In advisory, we ranked highest in the Japan related M and A league table and eleventh in the global M and A league table demonstrating its global presence. In financing and solutions, Revenue rose in DCM in response to an increase in the value of domestic corporate bonds issued and the sale in DCM partly owing to seasonal factors.

Moderator

Next, please turn to Page 13 for banking division, which became an independent division in April. In banking, net revenue was JPY 12,800,000,000.0, a rise of 12% and income before income taxes was JPY 3,600,000,000.0, an increase of 19%. KPIs such as loan outstanding and investment trust balance stayed buoyant as you can see and income from lending activities and trust and agent services held firm. In May, work to upgrade Nomura Trust and Banking's core banking system was completed and preparations for the adoption of sweep accounts in next fiscal year have been going smoothly. Next Page 14.

Moderator

Group wide expenses were JPY 363,000,000,000, a 2% increase from the previous quarter. Compensation and benefits were JPY186.3 billion, rising 8% reflecting an increase in performance linked bonus provisions. Information processing and communications expenses were 57,200,000,000.0 yen a decline of 5% mainly attributable to yen appreciation and also owing to factors including the dropping out of one time expenses recognized in the previous quarter. As an additional detail, other expenses came to 51,800,000,000.0 yen nearly the same amount that was recognized in the previous quarter. This includes 6,600,000,000.0 yen related to compensation for losses arising from illegal trades in client accounts due to phishing scams and JPY2.7 billion related to the acquisition and integration of The U.

Moderator

S. Asset management business of Macquarie Group. Other expenses look the same as the previous quarter because professional fees and other transaction related expenses declined. Finally, financial position, Page 15. In the table on the bottom left, you can see that Tier one capital was about JPY 3,400,000,000,000.0, down about JPY 100,000,000,000 from March and risk assets were about JPY 22,900,000,000,000.0, an increase of about JPY 1,400,000,000,000.0 with a result that the common equity Tier one ratio was 13.2% at the June, within the 11% to 14% target range we introduced at the Investor Day in May.

Moderator

This ratio is down from 14.5% at the March, attributable to an increase in risk assets arising in the course of normal business activities in the agreement to acquire all equity of The U. S. Asset management business of Macquarie Group factors that had the effect of depressing the ratio by about 0.8%. After the closing of the acquisition, the method of calculating the regulatory capital ratio will change and the effect of the acquisition on the ratio will change. This concludes our overview of our first quarter results.

Moderator

I would like to close with some final remarks. The first quarter got off to an uncertain start as The U. S. Introduced its tariff policy in early April and various events pointed to heightened geopolitical risk under such circumstances. We think our business got off to a steady start with revenue and profit rising quarter on quarter in every division.

Moderator

In the first quarter, EPS was JPY 34.04 and ROE was 12%, which are the highest respectively since the first quarter and the 2020 and 2021. On this basis, we have attained the quantitative target announced last year for 2030 of consistently achieving ROE of 8% to 10% or more for five straight quarters. The Nikkei stock average has been above the 40,000 yen level recently gradually making up for ground loss when it declined in April. Net revenue in wealth management In Japan, Nikkei stock average has been above the 40,000 yen level recently gradually making up for ground loss to when it declined in April. Net revenue in wealth management thus far in July has been slightly above the first quarter since mid June.

Moderator

Client sentiment has gradually improved in tandem with an easing of market uncertainty lifting the volume of business involving stocks and investment trust. In July, recurring revenue has been rising in response to a recovery in market prices with inflows of recurring revenue assets continuing to exceed outflows. We think wealth management will be able to shine precisely because of the changing conditions and we look forward to continuing the conversation with our clients. In Wholesale, equity products have been doing well in Global Markets business. Corporate actions aimed at improving capital efficiency and growth, particularly in Japan remained at a high level in Investment Banking.

Moderator

In July thus far, net revenue in Wholesale has been tracking in line with the level in the first quarter and continues to be solid. We would like to provide some more context on the issue of illegal trading in clients' accounts resulting from phishing scams. In response to instances of illegal trading, we raised the security level in stages and the number and scale of damages have come down from the peak. Our plan now is to accelerate the implementation of more sophisticated security measures and rollout passkey authentication system that uses more secure biometric authentication sometime this fall. But we should mention here that even our existing security protocols have been examined by external parties and have been judged to be up to spec with industry standards.

Moderator

We have been in direct contracts with almost all clients that have been affected by the attacks and we plan to deal with the situation thoroughly in consultation with them. We plan to monetize business opportunities while continuing to pay close attention to our risk thresholds and cost controls. We ask for your continued support.

Moderator

The first question is by Watanabe san of Daiwa Securities. Watanabe please go ahead. Watanabe of Daiwa Securities. I have two questions. First of all, phishing scam and the compensation for losses.

Moderator

Q1 JPY 6,600,000,000.0. But up to June, all of the illegal transactions had been reflected. And I think your policy is to bring back the position of the clients back. Is it going to be expended? Is it going to be reflected in your credit cost?

Moderator

And then on Page 11, if you look at the current growth, FICC was weak while equity was strong. Other than ForEx, what's the backdrop to FICC and equity trends? And also if you have monthly trends for FIC and equity, we would also appreciate such information. Thank you. Watanabe san, thank you for the question.

Moderator

First of all, on the phishing scam and the compensation, whether the cost reflects the transactions up to June. Up to June 28, on the assumption of restoring their positions, we estimated the cost counting the trays up to June 28. So I think it's safe to say that all of the illegal trays up to the June had been reflected. And also, where will this expense appear on which line other expenses? It's included in the line of other expenses.

Moderator

I hope I answered your first question. Yes. Thank you very much. That was Watanabe speaking. Then this is the CFO speaking.

Moderator

In comparison to peers, excluding ForEx equity strong, fixed income rather weak, that was your impression. And regarding fixed income, as you rightly pointed out, if we exclude strong yen, then in comparison to the American peers, think we've been able to catch up to a certain extent. However, we may appear to be slightly weak because of the confusion of the April market. The Japanese rates product that was rather lagging and that had caused some impact. Japan's rates after May, we have been able to capture customer flow.

Moderator

However, due to the lag in April that had reflected been reflected in our performance And Japan credit, SPPC securitization slightly up. There was bouncing back from that strongness. And also the monthly trend at the global level fixed income in April, there was slight strength 30% in the mid-30s, but May, June more or less the same. So Japan was rather weak, but outside of Japan, there was some strength. And on the equity side in April, there was confusion and that increased volatility in trade.

Moderator

We have been successfully been able to do risk management. So as far as equity is concerned, slightly or close to 40% revenue was gained for equity. So April was strong. So that's where we are today. I hope I answered your question.

Moderator

Watanabe speaking. Thank you very much. And can I also confirm the reasons behind the strength in equity? Equity, this is the CFO speaking. Equity, yes, our performance was strong, especially The Americas customer flows led to U.

Moderator

S. Derivatives performance being significantly strong? Thank you. Watanabe speaking. Thank you very much for your responses.

Moderator

Now next person asking a question is Ms. Tsujino of BoFa Securities. Tsujino san, please. Thank you. Regarding global markets, in July, what is the situation that you could is there any particular situation you can talk about so compared to the other period during that term for Japan and also for overseas?

Moderator

Could you add some color of GM situation? And then secondly, about technical details for each region, EMEA is in the red ink, but looking at the GM geographies, FICC in Europe increased in profit, but why is this situation? Thank you, Tsujino san for your questions. Firstly, your first question, situation after or in and after July, any comment from our end? Overall, in GM, the business is not so bad and especially equity is strong and fixed income is relatively weak.

Moderator

But overall, performance is in line with the first quarter level. And also could you give me a moment to address your second question? For Japan and overseas Situation of Japan business in Japan is not weak, but overseas business is stronger than the business in Japan. That's our impression. Are you talking about both equities and fixed?

Moderator

Thank you. In Japan, fixed income is weaker than equities and equities are stronger. And for each region. In The USA, in Americas, recently we see a solid performance. In EMEA, the business is in line with our assumptions.

Moderator

And in AEG, there is some slowness, but it's within the assumed level or assumed range. Okay. And your second question, so the reason why the weakness the reason for the weakness in EMEA, why was loss incurred? That's because due to market factors, laser business was weak. So that was the reason.

Moderator

Also in EMEA, when we look at the cost, personnel cost due to the compensation regulation in Europe, in the first quarter, the cost that had to be recognized in the first quarter was inflated because of the regulatory impact. So those are the two factors that explain the slowness in EMEA. Other than them, the remainder is accumulation of smaller items. I couldn't catch what you said regarding what you said about the market. I couldn't catch what you said.

Moderator

Could you repeat? I said, Laser Digital, we have a digital asset business and that was affected by the market conditions and the performance there was not so strong. Okay. Understand. Was it so weak?

Moderator

But the market was recovering, if I recall, April through June. Market was weak in January through March, generally speaking regarding crypto asset. And flow aside from Japan, flow overseas in the April through June quarter flow was there was a sufficient flow in my understanding. Thank you. Not only the Bitcoin, but we hold various currencies and we also conduct venture startup type investing as well.

Moderator

So we received we were affected on multiple fronts. Okay, understood. Thank you.

Moderator

The next question is by Muraky san of SMBC Nikko Securities. Muraki san, please go ahead. Muraki of SMBC Nikko. On capital policy and M and A, I have a few points I wish to ask. Page 15, capital policy.

Moderator

You're the new CFO, Moriuchi san. I want to confirm with you your basic policy. Here hierarchy of capital policy, what's the priority? What's at the helm of capital policy? And also Q2 share buyback CET1 ratio, Macquarie closing on the debt assumption 12.5 probably at pro form a basis, but target range that would be the midpoint of the target range.

Moderator

What's the probability of risk taking? And what do you think about the level? Is it high, low? And regarding Macquarie, December was the original target date for closure. Has there been update?

Moderator

And also intangibles amortization and contribution to profits. If you have any updates on those points, I would also appreciate it. Thank you. This is Morioji speaking. Thank you for your questions.

Moderator

First question was on capital policy and what our priority in capital policy that is how I interpreted your question. First of all, it's about business strategy. Going forward in our business strategy investment, what's the expected investment and what are the specific opportunities and what are the strategies to capture those opportunities? Those are the points we need to think first. And in such a strategy, if we are not able to find many investment opportunities, then we will tilt towards returning benefits to the shareholders.

Moderator

But if we think that there are many opportunities, we've committed to more than 50% return of benefit to shareholders. So that taking into consideration, we will try to strike the ideal balance. A related point, 12.5%, it's the midpoint of the range between 11% to 14%. What's our evaluation of the level? In terms of capital, capital will become slightly thin.

Moderator

So it's probably thinning the capital rather than being at the midpoint. Set one, the lower bound 11%. It's difficult from the capital soundness perspective. So especially regarding wholesale, this will be the limit as you try to capture business opportunities. We say that and that versus usage, there could be some buffer, but taking into consideration the possibility of that buffer becoming tight, then it may be on the lower side.

Moderator

So is it too low so much so that it would be difficult to return benefits to the shareholders? No, not that level, but it may be slightly lower than the midpoint. Thank you. And again, this is the CFO speaking. Regarding Macquarie, do we have some updates?

Moderator

The original plan was to close by December. At the moment, Each country's regulatory authorities are being approached and we're in the filing process towards closing. And also by them coming into our group, there would have to be some linkage with the functions like IT and also they have to be booked into our accounting system. So consolidation system has to be worked out and we are currently conducting discussions with our counterparties and these consultations are proceeding extremely smoothly. So at this stage, are there any critical issues that would hinder closing?

Moderator

No, for the time being, there appears to be no such issues. And regarding profit contribution, intangibles, there's the NDA that we have signed. So until closing, it's difficult for us to comment further on the level. Thank you. Thank you very much.

Moderator

This is Muraki speaking. On the first point, you want to increase it one, in other words, you want to raise it to the higher level of the range, but risk asset, Macquarie Asset Management, Credit risk increased due to the agreement you reached. Market risk has increased, but considering your current market operations, RWA market operations RWA is about to increase in June. Do you think that there has been increase in this quarter? What do you think about the trend in risk weighted assets? Thank you. Thank you for the question. This is the CFO speaking.

Moderator

Why is RWA increasing in the market? One, in the current business exposure is increasing in some areas and that's being reflected in global markets and in investment banking, especially the global markets. But pipeline and activity and opportunities have become quite visible. So within our company, we are struggling to do the management of financial resources, but there is high performance and RWA may increase, but it's increased to a certain level. So we may have to manage more stringently. Thank you. Thank you very much for your response.

Moderator

The next question comes from JPMorgan Securities, Sato san. Please go ahead. I am Sato from JPMorgan Securities. It's a simple confirmation. Firstly, in the first quarter, you had special factors related to the 2,700,000,000.0 yen related to acquisition of Macquarie business and the compensation for the damage 6,600,000,000.0 So what is how are you reflecting these factors into different segments?

Moderator

And second point is regarding investment management, especially ETF outflow, JPY $670,000,000,000. So has the situation already settled by the June? Thank you. Thank you for your questions. Regarding special factors, where in the segment are we booking them?

Moderator

As for sale of Takanawa facilities, it's in others in segment others. And as for Macquarie and fishing compensation, they are in the headquarters or corporate account. And your second question regarding outflow of ETF fund, By the June, the situation has settled down. In the first quarter, we had ETF outflow and our speculation is that it's due to the activities of certain investors, which led to outflow. So excluding the activities of specific investors, the situation would have been stable.

Moderator

Thank you. Then Page eight of the material investment management cost, the cost on a Y o Y basis or Q on Q basis cost has slightly gone up. Is it if the increase is not due to special factors, what's the reason for the cost increase? Thank you. Regarding Y o Y, the personnel cost increased and the performance linked bonus increased for one thing.

Moderator

Also Nomura Capital Partners investment performance linked compensation increased somewhat. That's another reason. Understood. Thank you very much.

Moderator

The next question is by Morgan Stanley, MUFG Securities, Nagasaka san. Nagasaka san. Please go ahead. Nagasaka, Morgan Stanley MUFG Securities. Thank you very much for the presentation.

Moderator

On client sentiment, I have two questions on Investment Banking division and Wealth Management division. Regarding Investment Banking, if we look at the results of American banks in the April quarter, they are have dropped bright pictures regarding their guidance and engagement with clients is becoming more active. Those are some of the comments issued by American banks. Regarding Nomura, are you seeing recovery of corporate sentiments and more engagement with corporate customers? You said that the pipeline is full, which we understand.

Moderator

But including the outlook, what do you think about the posture of the corporate sector? Have you seen change or any other uniqueness in Japan? Can we still expect a stable deal completion in the Japanese market? Next on wealth management, the recurring assets net increase since July. But do you think that the customer behavior has changed when the market is down or even in the midst of uncertainties, do you think that the investment appetite has remained strong?

Moderator

Have you felt any changes in the client posture? This is the CFO speaking. Thank you for your questions. The first question regarding the client sentiments and especially on Investment Banking. First, if we compare Japan and overseas regarding Japan, there are slightly different behaviors in comparison to other markets.

Moderator

We feel so in the past couple of years. On continuous basis, the demand seem to have been quite high regarding activities. Corporate Governance Court, Stewardship Code was adopted a few years ago and close to ten years have passed. And in the recent one or two years, we have seen quite strong enthusiasm amongst the corporate sector. In other words, they think that they need to take action.

Moderator

So this may be unique to Japan different from overseas markets. And on the other hand, overseas market, after the Trump tariff news, there had been some delays to deals and we were no exception. But that kind of delay has become stabilized. So we can't it may be correct to say that the sentiment is improving, but in terms of pipeline increasing, I think the signs are brighter. And in the wealth management division, regarding wealth management in April, there was a market shock and there were some clients who took the wait and see attitude.

Moderator

But in April, May and June, Flow revenues were sound. But because the shock was quite significant to a certain extent, clients took the sidelines. But it didn't go as far as going into panic status. So in that sense, investors remain calm and literacy amongst the clients has improved. And we are expecting that they will become even mature as investors. Thank you. Thank you very much for those responses.

Moderator

The next person asking the question is ACBI Securities, Otsuka san. Otsuka san, please go ahead. I'm Otsuka from ACBI Securities. Can you hear me? Yes.

Moderator

Thank you. This is Otsuka. I have two questions. First, phishing scam. 6,600,000,000.0 yen that's the number you've talked about.

Moderator

But according to media report, the online securities and the face to face securities firms, their responses are different. Online security firms, they make compensation to cover 50% of loss mostly. But in your case, is it one as some media reports said 100% of damage will be compensated for by Nomura, but what is your approach? Thank you. Online security firms, well, they make a financial compensation to cover 50% of loss or damage.

Moderator

In our case, our approach is restitution that's different from 100% financial compensation. In other words, before the damage on clients, our approach is to bring everything back to the situation before the damage. So the restitution is our approach. So that's different from online brokers' approaches. Okay.

Moderator

So it's not monetary compensation that you are making. Yes, exactly. So our basic approach is restitution bringing situation back to the previous state. And of course, that damage suffered by clients and depending on the specific situations, it is not that we apply the same restitution approach all the time. So it is possible that on a case by case basis, we consider the monetary compensation, but the basic stance or approach is to restore the situation back to the previous state.

Moderator

Thank you very much. My second question is about the policy holding sale and your revenue. So there is the I do not find carved out numbers. So it may be difficult for you to answer, but global markets equity execution and investment banking, those are the areas where we see the numbers. But Nomura Securities standalone numbers such as trading securities and the underwriting of securities.

Moderator

In the first quarter, there seems to be a slowdown from last year. Is it the right understanding? That's my second question. Thank you for your question. Regarding the sale of policy holdings, as you say, global markets sale over securities through block trade or that kind of opportunity or the offering by investment banking such as EBV.

Moderator

So that kind of ECM and transactions will be another approach. But as you say, the last year or two, we have had a high level of activities related to policy holdings of shares, but pace of activity is slowing down even though our activities will not come down to zero, but we expect normalization of pace of our policy holding related activities. Okay. Then thank you. Then in Investment Banking, you have mentioned pipelines and deals.

Moderator

If anything, you are referring to the advisory side of business? Yes. Moriichi speaking. In IB, OE4C pipeline in IB in the area of M and A advisory. For DCM, we have a certain level of strength.

Moderator

On the other hand, for ECM this year, last year's activity was quite at quite high level. So we see slowness with ECM this year. Okay, understood. Thank you very much for your explanation.

Operator

As there is no more question, we'd like to conclude question and answer session. Now we'd like to make closing address by Nomura Holdings.

Moderator

Thank you very much for joining us. This was the first session for me to speak to the analysts. In future quarterly results announcements and in various other activities, will be depending on your great support. We will be working hard. I will be working hard.

Moderator

So I solicit your continued support. Thank you very much.

Operator

Thank you for taking your time. And that concludes today's conference call. You may now disconnect your lines.

Analysts
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