Monex Group Reports Weaker Third Quarter Revenues YoY

The Monex Group has published its consolidated financial results for the third quarter of its fiscal year ending on March 31, 2020, revealing a drop in quarterly profit for the Japanese financial services firm.

The Monex Group operates numerous retail brokerages. The company’s financial results for the third quarter for its 2020 fiscal year actually detail the company’s performance for the nine months from April 1, 2019, until December 31, 2019.

During this nine-month period, the Japanese financial giant reported total revenue of ¥38.7 billion. Due to a reduction in operating revenue, the revenue for the period has fallen by 5.0 percent from the ¥40.8 billion revenue reported in the prior-year period.

Quarterly profit for the nine-month the period was ¥2.1 billion, whereas the nine months ended December 31, 2018, achieved a quarterly profit of ¥2.6 billion. Therefore, quarterly profit has fallen by 18.4 percent year-on-year.

Monex Group is planning to transform Japan unit

According to the statement released this Friday, Monex is planning on transforming its Japan segment, which includes its retail brokerage Monex, Inc., from a brokerage model into an asset management model.

This change “aims to increase client assets after deducting commissions and management fees. Japan Catalyst, Inc. will drive the development of asset-management and asset-creation businesses,” the report said.

Breaking down the results into segments, trading volume in Monex Securities increased more than market growth, with segment profit increased to ¥900 million during the third quarter.

Commission-free race hurts US operations

In the United States, which has been a region of strength for the Group, the third quarter did not deliver as strong as a performance, with segment profit falling to ¥300 million, driven down by the lower interest rate and commission-free trading environment.

Coincheck, the Group’s cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term which has long been a sore point for the Japanese financial services firm, yet again reported a segment loss due to prolonged lower market trading volume.

“Coincheck has drastically reduced costs to cope with possible low market trading volume, with the aim to secure an increase in profits during a market recovery,” the company said in the report.