Nomura (8604) investor relations material

Upward revision of 2030 financial targets

• 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 previous targets and about 3x FY2024 results, 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 recurring revenue cost coverage over 100%, recurring revenue assets of ¥41 trillion, and Workplace client assets of ¥15 trillion by FY2030/31; Investment Management targets JPY 180 trillion AUM and PTI of ~¥150 billion; Wholesale seeks a revenue to modified RWA ratio of 7%+.

• Banking division, established in 2025, is positioned as a new growth pillar, targeting JPY 50 billion pre-tax income and significant expansion in loan and trust assets.

• Commitment to maintain a total payout ratio of 50% or higher, balancing growth investments and shareholder returns, with a consolidated dividend payout ratio of 40%+.

Strategic business transformation and growth initiatives

• Wealth Management has shifted to an asset management-based model, with recurring revenue assets and workplace business driving stable growth, and aims for collaboration with Banking and systematic talent development.

• Investment Management is evolving into a global platform, leveraging recent U.S. and European acquisitions, focusing on active ETFs, private credit, cross-selling, and targeting a 5-6% private asset ratio by 2030.

• Wholesale division has achieved record profitability, improved cost-to-income ratio, diversified its product mix, reduced revenue volatility, and is targeting further growth in fee-based and capital-efficient businesses.

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

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

Technology, cost discipline, and operational efficiency

• Accelerated use of AI and technology investments to enhance client experience, operational efficiency, and talent development across divisions.

• Structural reforms (SRC 2.0) target an additional $500 million in cost efficiencies, with disciplined cost control and resource allocation to further reduce the cost-income ratio and enable investment in growth.