Takumi Kitamura: Thank you very much for that question. In the fourth quarter, as you mentioned, Niwa-san, as top line was robust, the biggest factor was — well, for a quite a while macro-related businesses, especially rates that were challenged, but they came back. The business came back. As a result, revenue recovered. In addition, the last couple of years, we have placed focus on equity product and securitized products and credit, and they have constantly grown. So in that sense, this momentum is expected to continue. Also, IWM, International Wealth Business is — it’s growing steadily. So revenue contribution is expected there. The last couple — or last few years, over the last two years or so, so including the first half of this year, the situation has been challenging, as you know.
And this time, in the fourth quarter, the numbers in U.S. dollar basis, so it’s slightly above the fourth quarter number two years ago. So finally, through the — after going through that tough situation, we have come back to where we stand now. But as we look at our peers’ situation, the wholesale revenue level, our level does not seem inferior compared to our peers. So the capability of generating revenue is held by us. However, since breakeven point is relatively high, so when revenue comes down, then we lose bottom line profit, that’s the situation. So cost control is continued. And as mentioned, product line is being enriched and we are focusing on the recovery of rates business. And through such measures, we can expect continuity or sustainability of the performance.
And regarding EMEA, as you mentioned ¥18.8 billion of negative number, so minus ¥14 billion, then the number is negative. So our — so it’s a hub of our global business. So certain size of footprint will be retained in EMEA. And all along, in EMEA, we had limited revenue drivers. So we were overly dependent on rates business. And for a while, the rates business was not so spectacular. That was the reason for that stagnation. And the rates bond team now has the new leader who has got on board, and the team is being rebuilt. So we are starting to see the benefit and effect in the fourth quarter. So we have expectations for that part of the business. And we have depended on rates business, but we need to take countermeasures through that situation.
So we would like to increase revenue drivers, especially in Americas. Equity business is successful. So it is not that we are taking excessive risk but such businesses are what we are considering for expansion and also securitized products. In a globally consistent manner, we could conduct business. And from Americas, securitized products business in Europe could be monitored and overseen, and we are taking measures for that. So top line revenue drivers are going to be increased moving forward. So that the numbers will look better than the most recent numbers. That’s all. Thanks.
Koichi Niwa: Thank you very much. Regarding Wholesale risk asset control, could you elaborate on that? So 7.9% is the profitability. So value at risk is not used much. Then you have sufficient capital, then more capital could be allocated to go after more revenue from my view as an amateur, but from the viewpoint of accumulating revenue, what is your view on the usage of the risk assets? Could you give some more colors?
Takumi Kitamura: So thank you very much for your comment. So return or profitability on resource needs to be monitored all the time. And in the material, what we’ve shown is return on risk-weighted assets. Other than that, there are various resources such as leverage exposure and unsecured funding. And also, there are such resources though not necessarily regulated, so we are looking at various resources as we think about resource allocation. So if in the short term, if we find business opportunities, then temporarily, some funding will be allocated. So most important thing is to manage resources with discipline.
Koichi Niwa: Thank you very much for your explanation.
Takumi Kitamura: So that question was asked by Niwa-san from Citigroup Securities.
Operator: [Operator Instructions]. The next question is by SMBC Nikko Securities, Muraki-san. Please go ahead.
Masao Muraki: If possible, I have one additional question, I wish to ask. Today, BOJ Governor’s press conference was done, and he said that the rates will be hiked up to neutral level, money market fund. At what rate will there be revival? And then if it’s revived, you can expect significant amounts of funds. But as a trigger of cross-selling in wealth management, what are the hopes?
Takumi Kitamura: Thank you for the question. At the moment, money market fund, we don’t have that at the moment, frankly speaking. On this point, unless rates come higher, it would be difficult. But then at what level, frankly speaking, it’s very difficult to respond. I don’t know. Is it money fund or Nomura Trust Bank, which is a separate subsidiary? We are studying the possibility of accepting deposits. So in terms of idle funds, will they go to MMF or deposits for tentative parking of idle funds? If rates come higher, we are hopeful that idle funds begin to move around. Then within Nomura Group, for example, they could be used to purchase variable products or sell those products to purchase something else, there could be more flexibility and more action. So there are such hopes. I’m not sure whether I’ve been able to respond to your question, but that’s where we are.
Masao Muraki: Thank you very much for your response.
Operator: [Operator Instructions] As there is no more question, we would like to finish question-and-answer session. Now we would like to make the closing address by Nomura Holdings.
Takumi Kitamura: Thank you very much for your participation today. So regarding the performance, what we have done over the last several years, our efforts seem to have gradually delivered results, especially in Retail division. Revenue grew greatly, and the cost control has been effective. So compared to last year, cost is — has increased only by 5% and bottom line profit increased by 3.7x. So we see the result. As for Wholesale, which has been challenged in macro business, but we see recovery and the product lines that have underpinned the Wholesale have become solid. So — and the revenue is becoming more diversified. So moving forward, of course, market environments and especially geopolitical risks have to be monitored closely.
But if anything, our view is optimistic. Here at Nomura Group, in December 25, next year, we are celebrating our centennial anniversary. And as we do so, the founding principle and corporate philosophy will be cherished. So that — and we — in this situation, we created a purpose, we aspire to create a better world by harnessing the power of financial markets, that is the newly created purpose of Nomura. So compared to our peers, our purpose is longer, but it’s a specific purpose. And to achieve this, we will focus on our areas of competitiveness, pursue our — this time, we’ve been talking about situation by business, but we have — the collaboration across the business divisions will be the key for us. So we’d like to pursue added value by — through collaboration, and we’d like to proactively invest in growth areas and control costs stringently in order to raise our corporate value and achieve sustainable growth.
Thank you very much for your continued support. Thank you very much once again for your participation.
Operator: Thank you for taking your time, and that concludes today’s conference call. You may now disconnect your lines.
