Nomura (8604) Investor Day 2025 summary

Progress and results of transformation

• Achieved record net income of JPY 340.7 billion and ROE of 10% in FY2024/25, surpassing targets, with all business divisions contributing to profits.

• Wealth Management shifted to a recurring revenue model, with recurring revenue assets at JPY 1.3 trillion and cost coverage ratio improving from 39% to 67%.

• Investment Management AUM grew to JPY 89.3 trillion, with alternative assets at a record JPY 2.6 trillion and business revenues at JPY 163.7 billion.

• Wholesale Division diversified its portfolio, reducing daily earnings volatility by 30% and achieving international revenue growth.

• Strategic alliances with regional banks expanded client assets and new account openings, supporting future growth.

Management vision and financial targets

• Aims to achieve group-wide income before income taxes of JPY 500 billion and ROE of 8–10% or more by 2030, focusing on sustainable growth and expanding from public to private markets.

• Strategic resource allocation is shifting toward recurring, capital-light businesses, with increased focus on international expansion, especially in the Americas.

• New Banking Division established as the fourth pillar to drive groupwide collaboration and stable earnings growth.

• Capital policy sets CET1 ratio upper target at 14%, balancing capital efficiency, growth investment, and shareholder returns.

• Proactive dividend and buyback plans, with excess capital above 14% returned to shareholders if no attractive investment opportunities arise.

Wealth management strategy

• Targeting recurring revenue assets of JPY 37 trillion and cost coverage ratio of at least 80% by 2030, up from JPY 23.5 trillion and 67% in FY2024/25.

• Growth driven by deepening client relationships, new client acquisition, and productivity enhancements through digital tools and alliances with regional banks.

• Comprehensive alliances with six regional banks have grown client assets to JPY 3.4 trillion, with 88,540 new accounts opened since 2020.

• Workplace business supports asset building for company employees, expanding reach to emerging wealth clients.

• Digital transformation is increasing client engagement and recurring revenue inflows, with app users generating 5x higher net inflows per account.