Nomura (8604) investor relations material

Upward revision of 2030 financial targets and strategic vision

• ROE target raised to 10%-12% or more, and income before income taxes to over JPY 750 billion by 2030, a 1.5x increase from the previous target and about 3x the FY2024 result, reflecting accelerated progress and improved profit-generating capacity.

• All KPIs have progressed faster than anticipated, prompting upward revisions to key metrics across divisions.

• Each division has revised KPIs: Wealth Management aims for a recurring revenue cost coverage ratio over 100%, recurring revenue assets of JPY 41 trillion, and workplace assets under custody to over JPY 15 trillion; Investment Management targets JPY 180 trillion AUM and JPY 150 billion pre-tax income; Wholesale seeks a revenue to modified RWA ratio of 7%+ and cost-to-income below 80%.

• Banking division, established in 2025, is positioned as a new growth pillar, targeting income before income taxes of JPY 50 billion by 2030.

• Commitment to maintain a total payout ratio of 50% or higher, including share buybacks, while balancing growth investments and shareholder returns.

Business model transformation and growth initiatives

• Wealth Management has shifted to an asset management-based model, with recurring revenue assets and workplace business showing strong growth; 2030 targets for recurring revenue assets raised to JPY 41 trillion and workplace assets under custody to over JPY 15 trillion.

• Investment Management revised its 2031 targets upward to JPY 180 trillion AUM and JPY 150 billion pre-tax income, focusing on global expansion, private markets, and integration of recent U.S. and European acquisitions.

• Wholesale division has achieved record profitability, improved cost-to-income ratio, and is targeting further growth in fee-based and capital-efficient businesses, with a focus on international expansion and cross-divisional collaboration.

• Strategic partnerships and alliances have driven combined client assets in Wealth Management and Investment Management above JPY 300 trillion.

• AI and technology are central to operational efficiency, client service, and talent development, with targeted investments in digital platforms and data-driven solutions.

Division-specific strategies and priorities

• Wealth Management focuses on collaboration with Banking, expanding product offerings, and systematic talent development to enhance client satisfaction and business growth.

• Workplace business and platform strategies are expanding the client base, especially among emerging wealth segments and through partnerships with regional financial institutions.

• Investment Management is strengthening its global platform through acquisitions, product innovation, and a focus on private assets, targeting a 5-6% private asset ratio by 2030.

• Wholesale is upgrading 2030 targets, emphasizing high-ROE businesses, balanced growth, and enhanced operating leverage through cost discipline and resource optimization.

• Banking division is expanding through new services like Deposit Sweep, broader collateral eligibility, and infrastructure investments, aiming to deepen integration with Wealth Management.