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Nomura Holdings, Inc. (NMR)
Investors Day 2012 Call
June 04, 2012 12:00 am ET
Takumi Shibata – Representative Executive Officer, Group Chief Operating Officer, Director
Masao Muraki – Deutsche Securities
Natsumu Tsujino – JPMorgan
Takehito Yamanaka – Credit Suisse Securities (Japan) Limited
Katsunori Tanaka – Goldman Sachs
Makoto Kasai – Citigroup
This is Takumi Shibata. Thank you, very much for attending today despite your very busy schedules.
First of all, I would like to start with a recap of the years up to March 2012. And as you’re aware, over the past 12 quarters, we were profitable for 11 quarters. And in Q2 of last year, we booked a loss. However, from Q3 and also for Q4, we booked profits in all business segments at the pretax level, so things are recovering.
As for ROE, it was 3.5% in Q3, but it improved to 4.2% in Q4. So, not good enough yet, but it is recovering. For the non-interest expenses, this includes the Nomura land and building, but if you exclude that on a year-over-year basis, expenses went down by 5% year-on-year. And I will touch upon later, this includes the restructuring expenses, but we do not feel the benefits or the effects of the restructuring yet, the cost cutting yet.
As for the revenues, the revenues have been adjusted to the post head count reduction levels. So, revenues are post restruction, but expenses are before restructuring. As for the changes in the environment, as you know, Nomura has been responding to the regulatory environment and we have been saying that things will become very stringent in the future. And as for the business environment, things will be tough. But this is what we have been saying from the past.