Retail broker Invast Securities released its financial results for November of 2018 this Friday.
The Japanese firm saw a small decline in its operating revenue for the month.
In October, Invast Securities reported operating revenue of ¥431 million ($3.8 million).
Last month, that figure dropped to ¥423 million ($3.7 million) – a not particularly significant 2 percent decline.
When looking at the year as a whole, however, things were actually positive for Invast Securities.
Aside from January, when volatility was particularly high, the company only had higher revenue in August and October.
In fact, for the year thus far, the company’s average monthly revenue has been ¥377.7 million ($3.3 million).
Highest Client Deposits in Two Years
From a year-on-year perspective, things were even better.
In November of 2018, Invast Securities reported revenue of ¥408 million ($3.59 million).
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That meant this year saw a small increase of 4 percent when compared to last year.
But, again looking at the year as a whole, things were more positive than they would seem when just comparing November of last year to the same month this year.
The ¥408 million that the company reported in November of last year was its highest monthly revenue intake for the entirety of 2017.
In fact, average monthly revenue in 2017 was ¥339 million ($3.0 million) – less than this year thus far by just over 10 percent.
Growth this year seems to stem from an ongoing increase in the level of margin deposits made by customers.
These don’t correlate exactly with an increase in revenues. January of this year, for example, was the biggest revenue-generating month for Invast Securities, even though client margin deposits were much higher in October and November.
Nonetheless, in most instances, more client deposits, especially when there has been greater market volatility, will generate more revenue for a broker.
This has played out for Invast Securities. Client margin deposits in November were ¥80.5 billion ($709 million). Aside from October, when they were equal to ¥80.8 billion ($712 million).
Those were the highest margin deposit levels that the broker has seen in the past two years. As such, although it’s not to be expected, it’s also not too surprising that the firm performed well this month.