But if you look at the past two years, the market environment has been even tougher than what we expected. So things are different from what we expected which means we have to bring forward our cost reduction programs. And we are working on our cost reduction of $1.2 billion for the overall firm we have announced this cost reduction. And for wholesale, the cost reduction will be $1 billion. This is what we announced as our cost reduction expectation.

As of March end, the progress is 80%, 80, so roughly US$800 million of costs has already been reduced. So we are very sensitively monitoring costs or expenses. But on the other hand, the impact on revenues from the cost reduction is limited. And as shown on the right, we are delayering the organization of our wholesale division, and the media has been taking up this issue quite a lot. But our wholesale CEO, Jasjit Bhattal and also our Ex-Head of Global Markets, Tarun Jotwani, the two gentlemen have left our firm.

And we have a set of new position Wholesale Chairman and CEO, who covers investment banking, fixed income and equities and they have direct communication with each division. We have changed our organization. And what we’re doing is, we are trying to avoid the double layers or triple layers in our organization. This is not acceptable. And we also have to be very nimble in our communication. The environment does not allow us to have these multi-layers in our organization.

And as part of the cost reduction, we are currently delayering within investment banking, and also fixed income and equities. We are doing the same as we did for the overall Wholesale division. And let me summarize, where we stand at the moment. 2011 and earlier, we had a dominant position in Japan. However, the needs among customers for overseas transaction was increasing and we were not able to respond to these new needs.

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