Since then, we are swiftly implementing the announced cost reductions and we expect to have over 80% completed by the end of March this year. During the third quarter, we started to see some of the effects of the cost reduction program, but we expect the full effect to start contributing to our performance from the next fiscal year. In anticipation of changing market conditions and tighter regulations, we reduced risk assets and enhanced our risk management. We will continue to expand our offering of products and services that add value to our clients while maintaining our robust financial positions and ample liquidity as Asia’s global investment bank.
The recent management changes reflect our determination and although they were amicable departures, our intention is to create a flat management organization that allows for simpler communication lines and faster decision making processes while we also streamline our cost structure. While we expect the environment to continue to remain challenging for the time being, our focus is to continue expanding revenues by leveraging our geographic advantage as Asia’s global investment bank and proactively responding to the needs of our global clients.
With that, I would like to hand you over to our CFO, Mr. Junko Nakagawa, to give you an overview of our Q3 results.
Junko NakagawaThis is Junko Nakagawa, CFO. Based on the presentation, I would like to go over the highlights of the Q3 results for fiscal year March 2012. Please turn to page 3. Both revenues and income increased during the third quarter and all divisions were profitable on a pre-tax basis. As we contend with the debt crisis in Europe and challenging market conditions, Nomura’s long-term commitment to being a client-driven organization remains unchanged and we are adapting swiftly to the new revenue environment, expanding revenues and reducing cost by $1.2 billion as previously announced in order to lower our breakeven point.