Although we faced a challenging second quarter due to the Euro Zone Debt Crisis, business rebounded in the second half of a year and we are profitable on a full-year basis. Our $1.2 billion cost reduction program is progressing on schedule. And in anticipation of tighter regulation, we have reduced risk-weighted assets and strengthened our risk management.
As I said on the call last quarter, the effects of the downgrade by Moody's has been limited in terms of posting additional collateral trading revenues and funding costs. Looking ahead, we will maintain our robust financial position and abundant liquidity while focusing on serving our clients as Asia's global investment bank.
Now I will hand it over to our CFO, Junko Nakagawa to give you an overview of our result.
Junko NakagawaThis is Nakagawa speaking, the CFO. It is very nice to be given this opportunity. I would like to now present you an overview of our results for the fourth quarter and full-year ended March 2012. Please turn to page three of the documents entitled consolidated results of operations. All business divisions were profitable on a pretax basis in the fourth quarter, while worldwide revenues and net income increased both, quarter on quarter and year-on-year basis. Net revenue in the fourth quarter increased 23% from the prior quarter to 499 billion yen. Pretax income increased 76% to 60.8 billion yen and net income rose to 24% to 22.1 billion yen. As shown on the slide, pretax income rebounded in the third and fourth quarters after bottoming out in Q2. Full-year net revenue was 1.5359 trillion yen representing an increase of 36% from the previous year due to the conversion of Nomura Land and Building into the subsidiary of Nomura Holdings. Pretax income declined 9% year on year to 85 billion yen as a result of the difficult second quarter in Wholesale. Net income declined 60% from the previous year to 11.6 billion yen due primarily to a 13.3 billion yen decline in pretax income resulting from a reform of corporate tax system in Japan.