Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the sustainability of the current strong revenue environment in the Wholesale fixed income business, and are you satisfied with the current profitability? A: Takumi Kitamura, CFO, explained that the securitization business in the US was strong, with a focus on improving fund turnover and diversifying the securitization portfolio. While satisfied with the current profitability, Kitamura noted there is still room for improvement, particularly in rates products, which are showing signs of recovery.
Q: Regarding the sale of real estate and asset efficiency, are there other targets to improve asset efficiency, and what is the process for selling assets? A: Kitamura stated that the sale of the Takanawa property was due to the completion of new headquarters with training facilities. There are no current plans to change the ratio of holdings in NRI stocks or other assets.
Q: Can you provide insights on the shareholder return policy, especially in light of the commemorative dividend and potential buybacks? A: Kitamura confirmed that the JPY10 commemorative dividend is separate from the regular dividend payout. The policy of a 50% or more return ratio remains unchanged, and proceeds from asset sales will be used for shareholder returns, potentially including share buybacks.
Q: How is the investment trust business in Wealth Management evolving, particularly with private credit products? A: Kitamura noted that private products are being strengthened, with careful screening to ensure quality offerings. While the frequency of new product launches may not be high, the focus is on aligning with clients' risk appetites.
Q: What impact have the tightened rules on client visits had on Wealth Management, and how do you plan to manage costs in this segment? A: Kitamura mentioned that while there has been some impact on new customer acquisition, existing client relationships remain strong. Cost control measures are stable, with potential short-term increases due to IT investments aimed at future cost reductions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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