...My name is Ogino. I b ecame the president in April. I would like to explain the new mid-term management plan, Passion for the Best 2026, starting this fiscal year. Page five, overview of the previous mid-term management plan. The last three years have seen steady progress toward a wealth management business model in the retail segment. Asset-based revenue exceeded the target, reaching JPY 24.9 billion in the fourth quarter of FY 2023. Assets under custody hit the record high at 91 trillion JPY. The bottom chart shows the trend of the ordinary income by segment. Our hybrid strategy diversified portfolio and successfully built a balanced income structure. Page six. FY 2023's consolidated ordinary income was JPY 174.5 billion, a little short of the target of JPY 200 billion.
The right table shows actual results versus target ordinary income by segment. The retail division's double circle means that the ordinary income was even above a JPY 40 billion target in FY 2023. The Retail Division outperformed the target, backed by growth in asset-based revenue, driven by fund rapid balance increase and recovery in the flow revenue. In Global Markets, client flow expansion helped revenue recovery in equity and FICC, but it didn't get to the level as we had aimed at. Global investment Banking didn't meet the target, although M&A business expanded. The last line, Daiwa Next Bank, exceeded the target by growing interest income supported by higher interest rates. Page seven, income and expenditure improvement. From FY 2019 to 2023, we could structurally curtail a total of cost of JPY 40 billion.
In FY 2024 and onward, we plan to achieve additional cost savings of JPY 4.4 billion, but the costs are trending up because the personnel cost is rising due to wage hikes to engage competitive workforce, while aggressively investing in IT projects to enhance customer experience and business efficiency. There is no end to the cost reduction effort, and we will continue to challenge without setting any sanctuary. Page nine, summary of the new midterm plan. The basic group management policy is to maximize customer asset value. This is the tenth midterm plan. I have been involved in formulating all the past midterm plans in one way or another, except the very first one.
In defining the basic policy of the latest plan, we had a really hard thinking about what our group needs to do to survive and prosper by making our purpose meaningful in the society. We concluded that the answer to this is to maximize customer asset value. Every business division in the group will acquire deep understanding about customers, so that we can offer the most relevant and optimal solutions to fit economic environments and customer situations. Thus, we will do our best to contribute to customer asset value maximization. The new midterm plan established the numerical targets for 2026. The group-wide consolidated ordinary income target is JPY 240 billion or higher, with ROE of around 10%. In addition, we use base income as a KPI to measure stable and predictable income growth. The base income target is a minimum JPY 150 billion.
The base income is a total of ordinary income from Wealth Management Division, securities asset management, and real estate asset management. On top of the base income, we will add earnings from alternative asset management, GM and IB, and inorganic strategy execution, including alliance with external partners. Page 10. We changed the segment reporting in April. Naming was a change to better represent our evolving business model. We put together some group companies in the same segment for more integrated operation and stronger synergy effect. Page 11. This is the future vision toward FY 2030. There is no big change in directions. We will build a business portfolio that is resilient against external environment volatility. There are four points. The first is strengthening wealth management business. Segment ordinary income will reach JPY 140 billion in FY 30.
Wealth Management Division's ordinary income will go above JPY 110 billion. The second point is to advance and transform asset management business. The AUM target for FY 2030 is JPY 60 trillion+. In addition to securities and real estate asset management, we will expand into fund business such as private equity, business succession, and venture capital funds. Alternative Asset Management Division, which is a former Investment Division, will transform from proprietary trading to fund management business. Leveraging the proven track record, this division will structure world-class alternative funds to manage external investor assets. The third point is to reallocate management resources and to enhance management capabilities. Lastly, pursuit of a disruptive growth strategies like external alliances, M&As, and other inorganic strategies. Those programs will be executed in parallel to achieve JPY 350 billion+ ordinary income in FY 2030.
Page twelve. We will continue to aim for higher capital efficiency and ROE. As you find here, the capital usage ratio of a GM&IB was 48% of the total in FY 2023. The ROE of this division is low because their business uses lots of Basel capital to hold trading positions for their products. On the other hand, the Wealth Management and Asset Management Divisions are capital light, and their ROEs are higher. But we should not allocate management resources just based on these numbers. Being a comprehensive securities group, Wealth Management and GM&IB divisions work closely like two wheels of a bicycle. They are indispensable to each other. As Wealth Management and Asset Management Divisions grow bigger, the relative capital usage ratio of a GM&IB becomes smaller. We are not simply decreasing the capital usage ratio of a GM&IB for its own sake. Page thirteen, Group KPIs.
There are 12 KPIs, including ROE, ordinary income, the base income, along with the customer assets, digital, and sustainability-related KPIs. Page 14, segment-by-segment breakdown of FY 2026 ordinary income targets. There is no dependency on a particular division to attain the target. Every division will grow the income both organically and inorganically, while achieving higher ROEs sustainably. Page 15. The first example of the inorganic strategy is capital and a business alliance with Aozora Bank, which was announced on May 13. Daiwa will underwrite a third-party allotment to be implemented by Aozora for a JPY 51.9 billion, acquiring the 50.54% of the stake. Aozora Bank will become an equity method affiliate of Daiwa. We decided to enter the alliance because by leveraging the strength and customer base of the two companies, we will be able to create synergy.
Daiwa's expertise and network will accelerate the transformation of Aozora's retail business model into asset management business model. For us, Aozora's very sophisticated financing functionality and a network will enable Daiwa to better solve the problems of a broad range of our clients, such as high net worth, large enterprises, to startups. The alliance will cover four business areas, including wealth management. The two companies have already set up a management council to discuss further collaboration. We will aim to achieve and expand the business' synergy through alliance with Aozora Bank in a short time. Page 16. The next example is capital and a business alliance with Japan Post Insurance, announced on May 15. Japan Post Insurance will underwrite a third-party allotment to be implemented by Daiwa Asset Management for JPY 52.5 billion, acquiring 20% of the stake after the capital injection.
Japan Post Insurance, Kampo, is the largest asset owner in Japan. The inorganic alliance with the Kampo will bring in more assets under our management, as well as talented people and sophisticated investment advisory capabilities. We aim to grow AUM through this alliance, contributing the government's plan to promote Japan as a leading asset management center. This transaction will decrease our share in Daiwa Asset Management's profit from 100% to 80%. In return, we will manage more than JPY 1 trillion of Kampo assets, which will become the revenue source for us. As AUM grows, we will be better positioned to attract more external investors other than just Kampo, with more revenue potential. Furthermore, we plan to allocate the injected capital of JPY 52.5 billion to growth investment projects, including inorganic strategy. Promising a growth investment will further expand the consolidated income.
Incidentally, this transaction also has a positive effect on our consolidated capital adequacy requirement. In our view, the net impact of this alliance will be far above the loss of 20% of share in the profit of a DAM, considering the revenue growth driven by synergy, together with effective use of JPY 52.5 billion of equity.... Page 18. Now, strategy by division. Before I explain our strategies, let me touch upon growing income from wealth management and structural changes in America. The charts show revenue and the net income trends of Morgan Stanley's Wealth Management Division and Charles Schwab post-Lehman Brothers shock. Morgan Stanley grew revenue 2.7 times in 14 years, net income 17 times. The right hand is the trend of Charles Schwab, which is often perceived to be an online brokerage specialist. The revenue driver has been a face to face wealth management model.
The revenue of Charles Schwab grow 4.4 times in 14 years, net income 6.4 times, but the percentage of brokerage fees against the total revenue declined from 24% in 2009, down to 17% in 2023. On the other hand, their net interest income grew significantly as they increased face to face wealth management revenue and banking business. The other country's retail business experience provides useful reference in planning our ways to expand wealth management business. In Japan, elderly people own a large share of financial assets. This creates a huge potential for consulting a business in areas like inheritance planning, business succession, real estate transaction, and so forth. Daiwa's strength is face to face consulting. I am convinced that there is a massive business opportunity out there for us. Page nineteen. Wealth management is the most important strategic division in our group.
We changed the segmentation in April. The new Wealth Management Division includes former Retailer Division of Daiwa Securities, Daiwa Next Bank, Daiwa Connect Securities, and Fintertech. Wealth Management Division will maximize customer asset value by strengthening collaboration among these entities to boost synergy. Page 20. It takes time for a transformation to a wealth management model. We have reformed our business to become more centered on customer satisfaction. As a result, the asset-based revenue grew 8% year-on-year from FY 2021 to 2022, and grew even faster at the rate of 14% from 2022 to 2023. If the asset-based revenue grows 10% per annum on the average, the ordinary income of the Wealth Management Division will exceed JPY 110 billion in FY 2030. The asset-based revenue is influenced by the market condition, of course.
We will aim for sustainable profit growth by accelerating the transition to wealth management or business model, so that we can expand asset-based revenue going forward. Page 21 describes how stock assets will grow toward JPY 110 billion in ordinary income, backed by wrap account services, investment trust, and foreign currency deposits. By the end of FY 2030, we will grow the assets in wrap accounts to JPY 9.9 trillion, investment trust assets to JPY 8.6 trillion, and foreign currency deposits to JPY 1.3 trillion. The target ratio of asset-based revenue to total cost is 100%, and the target ratio against fixed costs is 150% in FY 2030. Page 22 is about Daiwa Securities' strategy based on customer attributes. Ultra-high net worth and high net worth clients have strong consulting needs.
Our services and support will cater to their specific needs. The next page explains more details. Page 23. We offer total asset consulting services in the form of portfolio solutions to cover not only financial assets, but also non-financial assets like real estate, which accounts for almost half of the high net worth customer assets. Asset consultants and inheritance planning consultants conduct hearing sessions with the customers to understand their needs around business succession, inheritance, and real estate, using external resources of our partners as well. The new alliance with Aozora Bank adds more services to our offerings, such as lending and trust, enabling us to give even more sophisticated and comprehensive consulting services. In order to provide optimal portfolio solutions, we have strong tools for asset management planning and asset inheritance planning.
Visualization of the management efficiency of our total financial assets, including assets deposited with non-Daiwa firms or institutions, is very convincing and makes our service distinct and valuable from a customer viewpoints like no other companies. Page 24. Targeting ultra-wealthy segment, we will add more high-level professionals. In October last year, we launched a Private Banking Strategy Department. This organization will offer more sophisticated support to the sales team to provide customized, value-added services to the ultra-high net worth.... consultants will acquire more skills while being supported by relevant organizations and systems. We will review and change the underlying systems as well as consulting support organization and evaluation system. For the mass market, we will take the optimal approach by combining people and digital to go into digital marketing so that we can support customers very efficiently.
We will allocate more consultants to activities customized for high net worth, while the customer support and call centers will play an important role in the mass market. We will establish a support system powered by artificial intelligence and digital technology. Page 25. Daiwa Next Bank. Positive interest rate is returning, and the spread is getting bigger. We can expect its greater contribution to the group earnings by growing a deposit base. As a company under Wealth Management Division, Daiwa Next Bank will work even more closely with the Daiwa Securities to pursue new business line expansion. Daiwa Next will invest in a broader asset classes, such as credit and alternatives, to generate more income. Portfolio will be designed not only from a spread gain perspective, but also from a capital efficiency perspective. The bank will also continue to grow foreign currency deposit balance. Page 26.
Daiwa Connect Securities has an important role in increasing touchpoints with the beginner investors on the back of the new NISA. Leveraging its branding strategy as a smartphone-only securities house with a compelling UI and UX application, it will steadily grow customer base and stimulate transactions in installment-type investment accounts, thus securing a stable income source. In the right hand is a Fintech story, recording single-year profit for the first time in the fifth year of operation. Fintech has really deepened collaboration with the Daiwa Securities in real estate investment loans. Fintech will create a new cash flow by challenging new technology and business, such as Web3, crowdfunding, and NFT. Page 27. We will continue to expand customer base through alliances with external partners. Our collaboration with the Japan Post Group started in May 2022 by offering fund wrap services at Japan Post Bank.
As of the end of March 2024, the balance was JPY 101.8 billion, demonstrating a continuous growth. The monthly contract value has been trending up over time and even gaining speed this fiscal year. This is because both the Japan Post Bank consultants and customers have deeper understanding now. This business is expected to grow stably. In Kochi Prefecture, we collaborate with Shikoku Bank, which has a massive customer base and a branch network. The alliance has delivered better-than-expected results. The securities balance had reached JPY 320 billion by March end of our 2024. The Shikoku collaboration gives us access to customers who would be otherwise beyond our reach, and with our securities expertise, we can expect a growth in transactions. Daiwa will actively continue to pursue more alliances with partners that own a strong customer base. Page 28.
Asset Management Division has three sub-segments. Please look at page 29. First of all, securities asset management. Daiwa Asset Management stays away from cost competition. Instead, it fights with high value-added products with a differentiation point, such as alternatives. It will also focus on a business with the sales companies and institutional investors. AUM, as of the end of March 2023, stood at JPY 32 trillion. Since FY 2020, the division has grown a fund wrap business, diversified sales channels, and developed a flagship fund, creating a momentum of a fund inflow. It was ranked as number three out of 82 companies in terms of fund inflow. Page 30. Our group holds 50% of the stake of our Global X Japan, an ETF specialist company. Its AUM grew three times YOY.
In February 2020, we invested $120 million in a Global X ETF in New York. The bonds will be converted to common stocks in February 2025. When converted to our stocks, we will have 20% of our Global X equity. We expect income contribution from this stake on the back of rapidly growing AUM. ETF market is expected to develop here in Japan, too. We will continue to grow AUM by offering unique products to drive a transition from savings to investment. Page 31. To elevate the level of asset management, it is important to find and foster effective emerging asset managers.... The EMP initiative serves this purpose and will lead to offering products to satisfy the best interest of the customers, and will contribute to the Japanese government's vision to become a leading asset management center.
Daiwa Corporate Investment, DCI, has accumulated know-how through management of more than 90 funds since its inception. Daiwa Fund Consulting, DFC, has an excellent eye for distinguished managers as a research expert. Combining their capabilities, we will launch two funds, one for private assets and the other for liquid assets. The private fund was launched as of May 15, 2024. First, we contribute seed money to this fund, and then we will solicit LP investment by institutional investors who are interested in emerging managers discovered under the EMP initiative. Page 32. Real estate management has steadily grown and made a stable profit contribution since 2009 entry, with increasing AUM, along with acquisition of management companies and REITs. This division also has a warehousing function. Real estate companies don't like a direct transaction with the competitors in the same industry.
This is why we are approached by sales propositions from many places. Our warehousing function leverages the group creditworthiness to support acquisition of our properties. The acquisition process is further facilitated by our strengths, namely, a fast decision-making process and agility. Page 33. Sumty entered capital and a business alliance with us in 2019, and became an equity method company. Sumty's source of income was to primarily develop rental condos, then sell them to REITs and external investors. Going forward, Sumty will develop, lease, and operate hotels, too. We will continue to expand real estate asset management business through alliance with Sumty. Page 34. Investment Division will transform from proprietary trading a business to fund management business. Daiwa Corporate Investment is a long-time player among venture capitals. It has 40 years of fund management experience.
Together with a long principal investment track record of our Daiwa PI Partners and Daiwa Energy and Infrastructure, we are in a good position to attract the fund from outside sources. Fund business will become the core of this division. Page 35. Daiwa PI Partners will strengthen its sourcing in the distressed segment to continue to earn a stable principal investment return. It will also put resources into management of the domestic private equity fund, which was launched last year. Daiwa Energy and Infrastructure's investment balance was JPY 173 billion at the end of FY 2023. In 2030 or so, the balance will be larger, combining its own capital of JPY 250 billion and the external capital.
Going forward, it will take advantage of its strong global network to grow investment balance in the renewable energy and infrastructure areas outside Japan, where the market has scale. Page 36, Global Markets. The performance varies from year to year because of the susceptibility to market conditions. But Global Markets has been making about an average JPY 36 billion a year in ordinary income over the past 10 years. We will continue to allocate resources to business lines that contribute to improvement of the consolidated ROE at a group level. We will improve capital efficiency by optimizing employed capital based on the profitability of each product. Page 37. There are two focus areas in GM. One is a stronger collaboration between GM and wealth management. Private companies in the mass market are expected to become busy with many activities in the future.
With the AI technology, we will match customer attributes and scenario analyses to develop better-suited proposals. The other focus is to strengthen our Japan equity sales capabilities, which is one of our strengths, by globally increasing our customer touchpoints. Our satellite offices in North America and other locations will create more customer touchpoints. In Asia, we will build Japan equity business based on our relationships with Asian equity investors. In addition, we will enhance service quality and profitability by unlocking our number one research position in analyst rankings, as well as stronger relationship between GIB and issuers, and better corporate access service for institutional investors. Page 38. Next, Global Investment Banking. We were designated as the lead manager in big PO and IPO projects last fiscal year, in addition to strategic share unwinding projects. As a result, ECM achieved a dramatic revenue growth.
The value of a bond issuance by DCM grew amid rising interest rates and stronger demand from investors.... Looking back the last fiscal year, Japanese companies faced a big challenge to improve capital efficiency. Some companies reviewed existing business portfolio and strategic shareholding, others changed ownership structure and/or executed M&As as a growth strategy, which created need to raise fund. The domestic IB business, in general, benefited from a strong tailwind blowing from the favorable equity market. Given that, there are more frequent and diversified corporate actions happening. We changed the organization and team structures in part. The new organization is better fit to approach unlisted companies and to offer real estate-related solutions. We will continue to beef up GIB to offer a broad range of solutions, leveraging the collaboration among various companies in the group. Page 39.
M&A business is the area where we can grow big without spending much capital. We established Daiwa Corporate Advisory as a unified brand in 2019. Since then, we have expanded the business scope through alliance and acquisitions. As a result, the top line has been rising, and M&A revenue hit a record high last year at JPY 48.9 billion. We are beginning to see signs of M&A market recovery in Europe and Americas, and there are a record number of projects in the pipeline. Page 40. Overseas business made a profit for 8 years in a row by identifying competitive advantages of each region and optimizing resources for growth and profitability. In Americas, we aim to maximize profits from FICC business, in particular, as this is the driver of overseas business and our strength as well.
To increase the coverage, we are going to open a satellite office in Los Angeles, in addition to Palm Beach office in Florida and a Charlotte office in North Carolina. In Europe, we acquired Irish M&A boutique IBI Corporate Finance to expand the geographical coverage. Adding to the network in Ireland, where GDP is growing very fast, DC Advisory offices will work together more effectively. Hiring of bankers and people transfers were conducted as seed investment in order to have a broad coverage of M&A business in Europe and America. Among all the M&A advisory companies serving mid-cap transactions, we are the only one that boasts such a huge global network. This is a strong competitive edge. In Asia and Oceania, we will more strongly promote Japanese equity and expand high net worth business to a wider area. Page 41.
Most recently, we acquired 15% of Ambit Finvest stake, a non bank company in India. Finvest operates more than 165 branch offices across India, offering SMEs and their owners both secured and unsecured loans and secondhand commercial vehicle loans. This company will become a conduit to access the fruit of a growing non-bank business in India. We are executing alliance strategies in other areas such as Asia, Americas, Europe, and so forth, to expand our business domains. Page 43, financial and capital strategy. We will keep the right balance among financial soundness, capital profitability, growth investment, and shareholder return, while aiming at higher sustainable corporate value. The dividend payout ratio has been a minimum 50%, reflecting the consolidated earnings every six months.
During FY 2024 through 2026 midterm management plan period, we will set a floor for a full year dividend at JPY 44 per share. Please turn to page 46 for details. We began preparation for earnings forecast disclosure two years ago. However, looking at the recent ordinary income, volatile GM and IB recorded the ordinary income 15.7 times bigger versus last year, and even stable Wealth Management Division's earning was 2.3 times higher than last year, well above initial forecast. Is it appropriate or misleading to disclose earnings forecast now when there is such a high volatility in our earnings? I believe we need a little caution before starting this disclosure. Having said that, transformation to wealth management business and portfolio diversification are making earnings less volatile in a Wealth Management Division, securities Asset Management Division, and a real estate Asset Management Division.
Considering that a stable profit stream is solidifying the group's consolidated earnings for sure, and to respond to investors' strong request to make a dividend outlook more predictable, we decided to set a floor at JPY 44 for full year dividend for three years under the new mid-term plan, in addition to the current dividend payout ratio policy of 50% or higher. Page 49. Sustainability activities in business have become a norm in our age. We will continue to work hard on sustainability initiatives across the group, while ensuring the business sustainability, too, because these efforts have power to drive changes, in our view. Page 51. One of our corporate values is people. Human capital is clearly stated as the source of competitive edge of Daiwa Securities Group.
Based on this people value philosophy, we make necessary investment in hiring and the development of the people, allocating the right people in the right places, and establish fair evaluation and compensation systems. Sustainable engagement is one of the KPIs with a target of a minimum 80%, because engagement has high correlation to business performance. Since the start of the engagement survey, our score has been high relative to other Japanese companies. We will keep monitoring our strength and issues to achieve better performance. Page 52 is about digital strategy. Ahead of other companies, we deployed ChatGPT as a trailblazer. We will apply this technology to external services for the benefit of customers. The first step was implementation of a KOTO AI operator. KOTO answers questions about a social tipping service called KASSAI, which is operated by Fintech. KOTO was developed in a short period of just two months.
This technology proved to be effective, as the number of accesses and inquiries increased significantly since its launch. We will continue to utilize the latest technology in every situation to enhance the sustainable value of the existing business and to deliver disruptive value creation. Page 53, corporate governance. Upon the approval of all motions at the upcoming annual shareholders meeting, 50% of the board membership will be outside directors, and half of the board members will be women. Lastly, we have been constantly working in earnest to move to a wealth management business model. As a result, stable earnings increased, and our earn income structure is less susceptible to external environments than before. Going forward, our group will further develop wealth management and asset management businesses, as they are less volatile in profitability and more predictable in terms of market growth.
On the other hand, more agile and volatile GM and IB will pursue revenue and income upside. In February this year, the Nikkei average topped the peak price recorded during the bubble economy. Japan was finally liberated from the past trauma. The whole society has come to be conscious of equity governance more than ever before. The securities group is expected to play a bigger role now. As I said at a press conference in December last year to announce the succession of our presidency, I am managing this group with a sense of speed. I am doing everything I can, one after another, starting with things like creating a good workplace atmosphere by introducing business casual clothing policy to new advertising commercials and external alliances. I deeply value engagement with investors and analysts, and I'm looking forward to having more dialogue with you.