Investor Presentaiton
Challenges facing Wholesale
■Fixed Income revenue declining against market backdrop
Cost flexibility constrained owing to rigid indirect costs
Wholesale revenue, costs, PTI
(billions of USD)
Revenue
2
1
NOMURA
7.0
7.7
7.6
7.2
6.0
6.8
6.5
4.9
-24%
Costs
7.5
6.9
6.5
-8%
6.4
5.9
5.6
5.3
5.1
(Direct
Costs)
5.1
4.8
4.6
4.5
4.0
3.7
3.5
-11%
3.3
(Indirect
Costs¹)
2.4
2.1
2.0
1.9
1.9
1.8
1.8
-1%
1.8
FY 11/12
FY 12/13
FY 13/14
FY 14/15
FY 15/16
FY 16/17
FY 17/18
FY 18/19 1-3Q
(Annualized)²
PTI
-0.5
0.8
1.1
0.7
0.1
1.5
0.9
-0.2
1.
2.
Indirect costs include Corporate expenses directly related to Wholesale and other Corporate expenses allocated to Wholesale based on certain criteria.
On April 1, 2018, Nomura adopted Accounting Standards Update 2014-09 "Revenue from Contracts with Customers" and revenues and expenses related to certain Execution Services transactions are now shown
as net value rather than gross value. As a result, revenues and expenses for FY2018/19 1-3Q declined by approx. 13.4 billion yen. Excluding Goodwill impairment charge of 81 billion yen in Q3 FY 18/19.
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