Kabu Reports Overall Sluggish Revenues in May

Kabu, an online securities broker, has published its monthly business results for the month of May. Taking a look at the preliminary figures, it appears that May was not a strong month for the firm.

Kabu, which is a subsidiary of the Mitsubishi UFJ Financial Group, reported a decline in market making, which is generally the firm’s largest source of revenue. During the month, revenue for this segment was ¥595 million ($5.5 million).

When measuring this against the previous month, which recorded a revenue of ¥636 million, last month’s figure for Kabu is lower by 6.4 percent. In fact, it is the lowest revenue the broker has reported for this segment, tying with January, which reported revenue of the same value.

In May, revenues generated from commissions was ¥478 million. Weighing this against the previous month, it is down by ¥21 million or 4.2 percent. It is also the lowest monthly revenue generated since January.

For brokerage commissions, fees generated from options and futures contract trading contributed the most to the overall value. Specifically, this segment had revenue of ¥65 million, which represents an increase of ¥16 million or 32.7 percent.

Net operating income for Kabu in May managed to increase ever-so-slightly, by ¥1 million or 0.08 percent, rising from ¥1.313 billion in April to ¥1.314 billion last month. This is the second strongest result so far this year, behind March.

Kabu Non-Traditional Revenue Surges in March

Non-traditional revenue, which includes API revenue, equity commissions excluding financial product intermediation, and credit-finance balance, however, noted a solid increase month-on-month.

Throughout the month of May, Kabu generated ¥605 million in non-traditional revenue. This is stronger than April’s result of ¥548 million by ¥57 million or 10.4 percent. It is also the strongest monthly value achieved all year.