Group Revenue Growth and Strong ROE
Group-wide net revenue of JPY 551.8 billion in Q3, up 7% quarter-on-quarter; return on equity 10.3% for Q3 and 10.8% on a 9-month basis, meeting the 2030 quantitative ROE target (8%–10%+) for the seventh consecutive quarter.
Four Main Divisions Delivered Record Pretax Income
Combined pretax income for the 4 main divisions rose 8% QoQ to JPY 142.9 billion, the highest level in 18.5 years; 9-month income before income taxes rose 15% year-on-year to JPY 432.1 billion and net income for 9 months rose 7% to JPY 288.2 billion.
Wealth Management Momentum and Net Inflows
Wealth Management net revenue increased 14% QoQ to JPY 132.5 billion and pretax income rose 29% QoQ to JPY 58.5 billion; recurring revenue reached an all-time high of JPY 52.7 billion and recurring revenue assets had a record net inflow of JPY 503.9 billion (recurring assets total JPY 28.1 trillion, all-time high).
Wholesale — Global Markets and Investment Banking Strength
Wholesale net revenue rose 12% QoQ to JPY 313.9 billion and pretax income rose 17% to JPY 62.3 billion; Global Markets net revenue +9% to JPY 256.8 billion, fixed income +12% to JPY 136.9 billion, equities +5% to JPY 119.9 billion, and Investment Banking net revenue surged 31% QoQ to JPY 57.1 billion (strongest since FY2017).
Investment Management AUM and Business Revenue Highs
Assets under management reached an all-time high of JPY 134.7 trillion at end-December; net inflows of JPY 115 billion (11th consecutive quarter of net inflows); business revenue (stable revenue) reached an all-time high of JPY 57.8 billion.
Share Buyback to Enhance Shareholder Returns
Announced a share buyback program running Feb 17–Sept 30 with an upper limit of 100 million shares and JPY 60 billion in amount to enhance shareholder return and capital efficiency.
Capital and Financial Position
Tier 1 capital of JPY 3.6 trillion (up JPY 60 billion QoQ), risk-weighted assets JPY 24 trillion (up JPY 700 billion), and common equity Tier 1 ratio at 12.8%.
Banking and Product Sales Positives
Banking net revenue rose 7% QoQ to JPY 13.7 billion and pretax income rose 31% to JPY 4.2 billion; total sales across products increased ~JPY 300 billion to JPY 6.6 trillion, with equities +4% and insurance sales remaining strong.