Invast Securities Discloses Mixed Results in Second Quarter FY2017

Invast’s latest metrics release follows on the heels of a September update to its financials earlier this month.

The Japanese forex broker Invast Securities reported its financial metrics for Q2 of the fiscal year ending March 30, 2017, which were emblematic of lagging performance, according to an Invast statement.

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Net operating revenues at the Japanese broker managed to rise to $15.2 million (¥1.6 billion) during Q3 2016, having soared 83.4% YoY compared to Q3 2015. However, operational expenses for the entire quarter jumped to $16.6 million (¥1.7 billion), which constitutes a jump of 97.3% YoY.

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In addition, Invast’s net operating income also experienced a similar drop during Q2 FY2017. The broker reported a loss of $475,327 (¥50 million) in the reported quarter, compared to a profit of $1.9 million (¥200 million) in the same period of last year. On a related note, the quarter net loss attributable to parent company shareholders amounted to $522,884 (¥55 million) compared to solid gains of $884,067 (¥93 million) in the year earlier.

Invast’s latest metrics release follows on the heels of a September update to its financials earlier this month. For the month ending September 2016, operating revenues at Invast Securities came in at $2.3 million (¥239 million), up 13.8 percent from $2.1 million (¥210 million) in August 2016. Invast’s September revenues have put the brokerage back on the right track but the figures are not at the higher levels recorded in the first quarter of this year. The latest revenues stand at the third lowest so far in 2016, indicating that a continuing uptrend next month would be more than welcomed.

The decline in revenues and volumes is a scenario that has been faced by many brokers in 2016 following the Brexit referendum, and more recently, seasonal lulls during the month of August. September 2016’s operating revenues were also substantially lower than in the same period in 2015, falling by 28.2 percent YoY from $3.2 million (¥333 million) back in September 2015.

In terms of the total amount of deposited margin at the broker, Invast experienced a rather marginal rise in September 2016, reporting a figure of $666 million (¥69.18 billion), compared with $662 million (¥67.66 billion) in August 2016, equating to a small increase of 2.2 percent MoM. Over a yearly timeframe, this figure reflected a YoY fall of -1.7 percent from $677 million (¥70.4 billion) in September 2015.

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