Japan’s Monex Group published its final results for the fiscal year of 2023, reporting a decrease in revenue and profitability in annual figures. In the last three months of the fiscal year, the financial services conglomerate brought in a pre-tax income of JPY 2.2 billion, which is an uptick of 474 percent.
Monex’s Quarterly Numbers Increased
According to the official release, the Japanese group ended the fourth quarter of FY 2023, between January and March, with a total operating revenue of over JPY 19 billion, which increased 5 percent from the previous quarter. The EBITDA came in 34 percent higher at JPY 4.5 billion.
Monex owns an array of financial services businesses in Japan and overseas. It owns TradeStation in the United States and operates the crypto exchange, Coincheck in Japan, apart from its core asset management businesses.
The conglomerate generated JPY 405 million from its Japanese business segments alone during the quarter, while most of the profits came from the US business at JPY 1.9 billion. The valuation gains on several portfolio companies resulted in profitability of JPY 187 million from the investment segment. However, Monex’s crypto businesses turned a loss of JPY 152 million despite a reduction in advertising expenses.
Boosts to Various Segments
For its Japanese business, the conglomerate highlighted that despite a decline in FX revenue due to lower market volatility, gains in the management of held USD deposits and mutual fund-related revenues pushed the profitability higher.
“Revenue stream has become more diversified at Monex Securities due to the steady increase in revenues other than Japan equities brokerage commissions,” Monex stated.
The significant increase in US profitability was caused by increased commissions as trading volumes jumped. Also, the interest income from customer cash deposits grew due to the continued climb in US interest rates.
As for the entire fiscal year, the operating revenue of Monex Group declined 10.7 percent to JPY 79.3 billion. The pre-tax profits plummeted 77.6 percent at JPY 4.66 billion, while it netted JPY 3.3 billion in profits, which is down 74.5 percent.
