Investor Presentaiton
1
Challenges facing Wholesale
2
NOMURA
External factors: Secondary trading environment worsening
(billions of USD)
Internal factors: Rigid cost structure
(billions of USD).
Global Wholesale fee-pool1
Wholesale direct costs vs. indirect costs
232
2011-12 Avg.
vs. 2018
■FY12/13
■FY18/19 1-3Q
(Annualized)²
Advisory
19
212
200
14%
21
Financing/
21
13%
4.8
57
-31%
Solutions
66
64
11%
3.3
Secondary
trading
156
125
115
26%
2011-2012
(Average)
2016
2018
Direct costs
-13%
2.1
1.8
Indirect costs
Margin compression with electrification
Leverage ratios, MiFID-II, other regulatory requirements
Shift from active investments to passive
Complicated organization structure
Remain high indirect costs due to responding to
regulatory requirements, lagging peers in reducing costs
Behind the curve in strategic digital transformation
1.
Source: Coalition, Nomura estimates
2.
Excluding goodwill impairment charge of Y81bn in Q3 FY18/19
3View entire presentation