Nomura : FY2023/24*2 3Q Pillar 3 Regulatory Capital and Liquidity Coverage Ratio Disclosure

Pillar 3 Regulatory Capital and

Liquidity Requirements Disclosures

for the quarterly period ended December 31, 2023

Nomura Holdings, Inc.

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CONTENTS
PART 1: NHI Consolidated Capital Ratios	3
CHAPTER 1 DISCLOSURE ON CAPITAL ITEMS	3
CHAPTER 2 CONSOLIDATED BALANCE SHEET WHEN THE REGULATORY SCOPE OF CONSOLIDATION IS APPLIED	8
CHAPTER 3 QUANTITATIVE DISCLOSURE	10
CHAPTER 4 TERMS AND CONDITIONS OF THE CAPITAL INSTRUMENTS	15
CHAPTER 5 MAIN FEATURES OF REGULATORY CAPITAL INSTRUMENTS	25
CHAPTER 6 DISCLOSURE ON LEVERAGE RATIO	45
PART 2: NHI Consolidated Liquidity Requirements Disclosures	47
CHAPTER 1 QUANTITATIVE DISCLOSURE ON LIQUIDITY COVERAGE RATIO	47
CHAPTER 2 QUANTITATIVE DISCLOSURE ON NET STABLE FUNDING RATIO	48
PART 3: Disclosure Policy	50

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PART 1: NHI Consolidated Capital Ratios

CHAPTER 1 DISCLOSURE ON CAPITAL ITEMS

						(Unit: JPY million, %)
CC1: Composition of regulatory capital
				a		b
Basel III	Item
				Reference
template No.		December 31,		September 30,
				numbers
				2023		2023
					of CC2
Common Equity Tier 1 Capital: Instruments and Reserves(1)
1a+2-1c-26		Directly issued qualifying common share capital plus	2,907,935		2,845,473
	related capital surplus and retained earnings
1a		out of which, capital and capital surplus		1,294,696		1,285,334	1a
2		out of which, retained earnings		1,692,429		1,639,513	2
1c		out of which, investments in own shares (-)		79,190		79,375	1c
26		out of which, expected outflow of funds from		－		－
	businesses (-)
		out of which, amounts except for the above items	－		－
1b		Share warrant related to common share		－		－
3		Accumulated other comprehensive income and other	370,507		442,562	3
	disclosed reserves
5		Adjusted amount of minority interests related to		－		－
	Common Equity Tier 1 capital
6		Common Equity Tier 1 capital before	(A)	3,278,442		3,288,035
	regulatory adjustments
Common Equity Tier 1 Capital: Regulatory Adjustments(2)
8+9		Intangibles other than mortgage-servicing rights (net	161,756		160,673
	of related tax liability)
8		out of which, goodwill (net of related tax liability,	36,434		35,574
	including those equivalent)
9		out of which, intangibles other than goodwill and	125,322		125,099
	mortgage-servicing rights
		Deferred tax assets that rely on future profitability
10		excluding those arising from temporary differences	1,250		1,820
		(net of tax liability)
11		Cash flow hedge reserve		－		－
12		Shortfall of provisions to expected losses		44,347		46,018
13		Securitization gain on sale		－		－
14		Own credit valuation		66,076		64,119
15		Defined-benefit pension fund net assets		9,170		9,163
16		Investments in own shares (if not already netted off	497		491
	paid-in capital on reported balance sheet)
17		Reciprocal cross-holdings in common equity		－		－
		Investments in the capital of financial institutions
		that are outside the scope of regulatory
18		consolidation, where the Group does not own more	－		－
		than 10% of the issued share capital (net of eligible
		short positions) (amount above 10% threshold)

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							(Unit: JPY million, %)
					a		b
Basel III	Item
				Reference
template No.		December 31,		September 30,
				numbers
					2023		2023
						of CC2
19+20+21		Amount exceeding the 10% threshold on specific		－		－
	items
			out of which, significant investments in the capital
19		of financial institutions that are outside the scope	－		－
	of regulatory consolidation (net of eligible short
			positions)
20		out of which, mortgage-servicing rights		－		－
21		out of which, deferred tax assets arising from		－		－
	temporary differences (net of related tax liability)
22		Amount exceeding the 15% threshold on specific		－		－
	items
23		out of which, significant investments in the		－		－
	common stock of financial institutions
24		out of which, mortgage-servicing rights		－		－
25		out of which, deferred tax assets arising from		－		－
	temporary differences (net of related tax liability)
			Regulatory adjustments applied to Common Equity
27		Tier 1 due to insufficient Additional Tier 1 and Tier	－		－
			2 to cover deductions
28		Total regulatory adjustments to Common	(B)	283,100		282,287
	Equity Tier 1 capital
Common Equity Tier 1 Capital
29		Common Equity Tier 1 capital ((A) - (B))	(C)	2,995,342		3,005,748
Additional Tier 1 Capital: Instruments(3)
31a			Additional Tier 1 instruments classified as		－		－
		shareholder's equity
31b			Additional Tier 1 instruments classified as share		－		－
30		warrant
32			Additional Tier 1 instruments classified as debt		375,000		375,000
			Additional Tier 1 instruments issued by special		－		－
			purpose vehicle, etc.
34-35		Adjusted amount of minority interests related to		1,592		1,693
	Additional Tier 1 capital
33+35		Capital instruments subject to transitional		－		－
	arrangements included in Additional Tier 1 capital
33		out of which, instruments issued by Group or		－		－
	special purpose vehicle controlled by Group
			out of which, instruments issued by consolidated
35		subsidiaries of Group (except for the special		－		－
			purpose vehicle mentioned above)
36		Additional Tier 1 capital before regulatory	(D)	376,592		376,693
	adjustments

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						(Unit: JPY million, %)
				a		b
Basel III	Item
				Reference
template No.		December 31,		September 30,
				numbers
				2023		2023
					of CC2
Additional Tier 1 Capital: Regulatory Adjustments
37		Investments in own Additional Tier 1 instruments	－		－
38		Reciprocal cross-holdings in Additional Tier 1		－		－
	instruments
		Investments in the Additional Tier 1 instruments of
		financial institutions that are outside the scope of
39		regulatory consolidation, where the Group does not	－		－
	own more than 10% of the issued share capital (net
		of eligible short positions) (amount above 10%
		threshold)
		Significant investments in the Additional Tier 1
40		instruments of financial institutions that are outside	－		－
	the scope of regulatory consolidation (net of eligible
		short positions)
42		Regulatory adjustments applied to Additional Tier 1	－		－
	due to insufficient Tier2 to cover deductions
43		Regulatory adjustments to Additional Tier 1	(E)	－		－
	capital
Additional Tier 1 Capital
44		Additional Tier 1 capital ((D) - (E))	(F)	376,592		376,693
Tier1 Capital
45		Tier 1 capital ((C) + (F))	(G)	3,371,935		3,382,441
Tier 2 Capital: Instruments and Provisions(4)
		Tier 2 instruments classified as shareholder's equity	－		－
		Tier 2 instruments classified as share warrant		－		－
46
	Tier 2 instruments classified as debt		－		－
		Tier 2 instruments issued by special purpose vehicle,	－		－
		etc.
48-49		Adjusted amount of minority interests related to		374		398
	Tier 2
47+49		Capital instruments subject to transitional		－		－
	arrangements
47		out of which, instruments issued by Group or		－		－
	special purpose vehicle controlled by Group
		out of which, instruments issued by consolidated
49		subsidiaries of Group (except for the special		－		－
		purpose vehicle mentioned above)
50		Provisions		－		－
50a		out of which, general provisions included in Tier 2	－		－
50b		out of which, eligible provisions included in Tier 2	－		－
51		Tier 2 capital before regulatory adjustments	(H)	374		398

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						(Unit: JPY million, %)
				a		b
Basel III	Item
				Reference
template No.		December 31,		September 30,
				numbers
				2023		2023
					of CC2
Tier 2 Capital: Regulatory Adjustments(5)
52		Investments in own Tier 2 instruments		－		－
53		Reciprocal cross-holdings in Tier 2 instruments and	－		－
	other TLAC liabilities
		Investments in Tier2 instruments and other TLAC
		liabilities of financial institutions that are outside the
54		scope of regulatory consolidation, where the Group	－		－
	does not own more than 10% of the issued common
		share capital of the entity (amount above 10%
		threshold)
		Investments in the other TLAC liabilities of financial
		institutions that are outside the scope of regulatory
		consolidation and where the group does not own
54a		more than 10% of the issued common share capital	－		－
		of the entity: amount previously designated for the
		5% threshold but that no longer meets the conditions
		(for G-SIBs only)
		Significant investments in Tier2 instruments and
55		other TLAC liabilities of financial institutions that	－		－
	are outside the scope of regulatory consolidation (net
		of eligible short positions)
57		Regulatory adjustments to Tier 2 capital	(I)	－		－
Tier 2 Capital
58		Tier 2 capital ((H) - (I))	(J)	374		398
Total Capital
59		Total capital ((G) + (J))	(K)	3,372,309		3,382,840
Risk-Weighted Assets(6)
60		Total risk-weighted assets	(L)	18,344,672		18,212,210
Capital Ratios and buffers(7)
61		Consolidated Common Equity Tier 1 ratio ((C) / (L))	16.32%		16.50%
62		Consolidated Tier 1 ratio ((G) / (L))		18.38%		18.57%
63		Consolidated total capital ratio ((K) / (L))		18.38%		18.57%
64		Total of group CET1 specific buffer requirements	3.27%		3.25%
(%)
65		Of which: capital conservation buffer requirement	2.50%		2.50%
	(%)
66		Of which: countercyclical buffer requirement (%)	0.27%		0.25%
67		Of which: G-SIB and/or D-SIB additional		0.50%		0.50%
	requirements (%)
68		Common Equity Tier 1 available after meeting the	10.38%		10.57%
	group's minimum capital requirements (%)

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				(Unit: JPY million, %)
		a		b
Basel III	Item
			Reference
template No.	December 31,		September 30,
		numbers
		2023		2023
			of CC2
Amounts below the Thresholds for Deduction(8)
72	Non-significant investments in the capital	169,084		184,164
instruments of other financial institutions
73	Significant investments in the common stock of	216,212		221,862
financial institutions
74	Mortgage-servicing rights (net of related tax liability)	－		－
75	Deferred tax assets arising from temporary	9,297		8,905
differences (net of related tax liability)
Applicable Caps on the Inclusion of Provisions in Tier 2(9)
	Provisions eligible for inclusion in Tier 2 in respect
76	of exposures subject to standardized approach (prior	－		－
	to application of cap)
77	Caps on inclusion of provisions in Tier 2 under	6,212		6,341
standardized approach
	Provisions eligible for inclusion in Tier 2 in respect
78	of exposures subject to internal ratings-based	－		－
approach (prior to application of cap) (if the amount
	is negative, report as "nil")
79	Caps on inclusion of eligible provisions in Tier 2	41,972		41,724
under internal ratings-based approach
Capital Instruments Subject to Transitional Arrangements(10)
82	Current cap on Tier 1 instruments subject to	－		－
transitional arrangements
83	Amount excluded from Tier 1 due to cap (excess	－		－
over cap after redemptions and maturities)
84	Current cap on Tier 2 instruments subject to	－		－
transitional arrangements
85	Amount excluded from Tier 2 due to cap (excess	15,055		17,046
over cap after redemptions and maturities)

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CHAPTER 2 CONSOLIDATED BALANCE SHEET WHEN THE REGULATORY SCOPE OF CONSOLIDATION IS APPLIED

			(Unit: JPY million)
CC2: Reconciliation of regulatory capital to balance sheet
	a	b	c
Item
Balance sheet as in	Under regulatory
	published financial	scope of	Reference of CC1
	statements	consolidation
Assets
Cash and cash equivalents	4,337,013	4,305,042
Time deposits	489,290	489,290
Deposits with stock exchanges and other segregated cash	285,785	285,785
Loans receivable	4,957,782	4,894,399
Receivables from customers	321,907	321,840
Receivables from other than customers	1,188,688	1,176,993
Allowance for doubtful accounts	(3,916)	(3,916)
Securities purchased under agreements to resell	15,847,867	15,847,867
Securities borrowed	4,617,342	4,617,342
Trading assets	20,150,489	19,038,661
Private equity investments	111,483	66,402
Office buildings, land, equipment and facilities	466,799	417,716
Non-trading debt securities	349,185	263,734
Investments in equity securities	88,300	88,300
Investments in and advances to affiliated companies	451,731	451,731
Other	1,092,983	1,085,935
Total Assets	54,752,735	53,347,127
Liabilities
Short-term borrowings	874,630	826,776
Payables to customers	1,445,279	1,445,279
Payables to other than customers	2,441,592	2,441,463
Deposits received at banks	2,214,784	2,214,784
Securities sold under agreements to repurchase	18,938,950	18,900,106
Securities loaned	1,509,921	1,515,937
Other secured borrowings	289,881	289,881
Trading liabilities	10,539,740	10,651,455
Other liabilities	1,331,862	1,233,112
Long-term borrowings	11,805,441	11,067,783
Total Liabilities	51,392,085	50,586,580
Equity
Common stock	594,492	594,492	1a
Additional paid-in capital	700,203	700,203	1a
Retained earnings	1,693,510	1,690,228	2
Accumulated other comprehensive income	370,507	370,507	3
Common stock held in treasury	(79,190)	(79,190)	1c
Noncontrolling interests	81,124	81,124
Total equity	3,360,649	3,357,367
Total liabilities and equity	54,752,735	53,943,947

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			(Unit: JPY million)
CC2: Reconciliation of regulatory capital to balance sheet
	a	b	c
Item
Balance sheet as in	Under regulatory
	published financial	scope of	Reference of CC1
	statements	consolidation
Assets
Cash and cash equivalents	4,105,049	4,069,861
Time deposits	454,861	454,861
Deposits with stock exchanges and other segregated cash	316,894	316,894
Loans receivable	4,724,587	4,656,029
Receivables from customers	340,112	337,858
Receivables from other than customers	1,052,927	1,041,150
Allowance for doubtful accounts	(5,780)	(5,780)
Securities purchased under agreements to resell	16,973,370	16,973,370
Securities borrowed	4,796,490	4,796,490
Trading assets	19,520,628	18,469,481
Private equity investments	111,212	66,098
Office buildings, land, equipment and facilities	462,872	432,286
Non-trading debt securities	390,620	309,524
Investments in equity securities	106,421	106,421
Investments in and advances to affiliated companies	450,359	450,359
Other	1,014,663	1,011,053
Total Assets	54,815,292	53,485,961
Liabilities
Short-term borrowings	1,065,078	989,169
Payables to customers	1,328,775	1,328,775
Payables to other than customers	2,560,593	2,560,462
Deposits received at banks	2,064,278	2,064,278
Securities sold under agreements to repurchase	18,591,260	18,552,566
Securities loaned	1,739,100	1,745,096
Other secured borrowings	291,383	291,383
Trading liabilities	11,141,358	11,248,418
Other liabilities	1,219,157	1,122,238
Long-term borrowings	11,442,057	10,727,223
Total Liabilities	51,443,044	50,629,612
Equity
Common stock	594,492	594,492	1a
Additional paid-in capital	690,841	690,841	1a
Retained earnings	1,642,918	1,639,636	2
Accumulated other comprehensive income	442,562	442,562	3
Common stock held in treasury	(79,375)	(79,375)	1c
Noncontrolling interests	80,808	80,808
Total equity	3,372,248	3,368,966
Total liabilities and equity	54,815,292	53,998,578

Note: The amount shown in (a) may differ from the amount shown in FORM 20-F and other accounting disclosures of the Consolidated Balance Sheets, due to the difference in rounding.

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CHAPTER 3 QUANTITATIVE DISCLOSURE

1. Quantitative Disclosure

1. Key metrics

(Unit: JPY million, %)

KM1: KEY METRICS

	a	b	c	d	e
Common
disclosure	December	September	June	March	December
template
31, 2023	30, 2023	30, 2023	31, 2023	31, 2022

Available capital

1	Common Equity Tier 1 (CET1)	2,995,342	3,005,748	2,971,093	2,828,797	2,871,061
2	Tier 1	3,371,935	3,382,441	3,347,011	3,203,714	3,247,793
3	Total capital	3,372,309	3,382,840	3,347,368	3,204,118	3,248,223
RWA
4	RWA	18,344,672	18,212,210	17,833,741	17,323,921	17,934,115
Risk-based capital ratios as a percentage of RWA
5	Common Equity Tier 1 ratio (%)	16.32%	16.50%	16.65%	16.32%	16.00%
6	Tier 1 ratio (%)	18.38%	18.57%	18.76%	18.49%	18.10%
7	Total capital ratio (%)	18.38%	18.57%	18.76%	18.49%	18.11%
Additional CET1 buffer requirements as a percentage of RWA
8	Capital conservation buffer	2.50%	2.50%	2.50%	2.50%	2.50%
requirement (%)
9	Countercyclical buffer requirement	0.27%	0.25%	0.13%	0.12%	0.11%
(%)
10	Bank G-SIB and/or D-SIB additional	0.50%	0.50%	0.50%	0.50%	0.50%
requirements (%)
11	Total of bank CET1 specific buffer	3.27%	3.25%	3.13%	3.12%	3.11%
requirements (%)
	CET1 available after meeting the
12	bank's minimum capital requirements	10.38%	10.57%	10.76%	10.49%	10.11%
	(%)
Basel III leverage ratio
13	Total Basel III leverage ratio	63,844,147	65,283,968	61,835,108	56,865,053	58,706,412
exposure measure
14	Basel III leverage ratio (%) (row 2 /	5.28%	5.18%	5.41%	5.63%	5.53%
row 13)

(Unit: JPY million, %)

KM1: KEY METRICS

	a	b	c	d	e
Common	Fiscal year	Fiscal year	Fiscal year	Fiscal year	Fiscal year
disclosure
ended March	ended March	ended March	ended March	ended March
template
2024, 3rd	2024, 2nd	2024, 1st	2023, 4th	2023, 3rd
	Quarter	Quarter	Quarter	Quarter	Quarter

Liquidity Coverage Ratio

15	Total HQLA	6,437,090	6,035,514	6,479,694	6,529,743	5,895,882
16	Total net cash outflow	3,393,772	3,130,968	3,142,419	3,225,612	3,274,287
17	LCR ratio (%)	191.5%	193.7%	207.1%	203.8%	181.1%
Net Stable Funding Ratio
18	Available stable funding	17,955,343	17,449,924	16,719,876	15,971,165	15,323,658
19	Required stable funding	15,675,465	15,564,259	14,646,910	13,317,821	12,602,939
20	NSFR ratio (%)	114.5%	112.1%	114.1%	119.9%	121.5%

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