Monex Inc Reports Sluggish Q3 Despite Uptick in FX Trading

The brokerage reported losses for its key financial indicators for the nine months ended December 31, 2018.

Monex Group, Inc., has reported the financial results for the third quarter of its 2019 fiscal year for its wholly-owned subsidiary Monex Inc. Despite a strong performance in foreign exchange (forex) trading during the third quarter, the brokerage achieved a lackluster performance during the nine months ended December 31, 2018.

Monex Inc sees a strong uptick in FX trading

Earlier today, Monex Group reported its financial results on a group level. As Finance Magnates reported, in its Japan segment, where Monex Inc. operates, segment profit was ¥1.1 billion ($10.12 million) for the third quarter. This is a jump of 36 percent when compared to the previous quarter.

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In Japan, through FX Plus, which is part of Monex Inc., trading volume largely increased during the quarter, which contributed to a rise in the total forex revenue. Furthermore, the market share of traded currency in FX trading hit 1.5 percent for the first time since 2011.

Despite this, overall, the broker managed to report losses across the board for its key financial indicators. However, it is important to note that the above financial figures were for the third quarter (October 1, 2018, until December 31, 2018) of the company’s 2019 fiscal year.

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Whereas the “third quarter” results supplied by the Monex Group for its subsidiary Monex Inc. today is actually the financial statement for the period up until the end of the third quarter, so the nine months ended December 31, 2018.

Monex Inc sees YoY drop for the nine-month period ended December 2018

Operating revenue for the nine months ended December 31, 2018, was ¥22.81 billion. When comparing this to the prior year nine-month period, this is down by 6.9 percent, as operating revenue for the same time frame in 2017 was ¥24.49 billion.

Net operating revenue also recorded a year-on-year loss, falling by 7.3 percent from ¥21.92 billion in the nine months ended December 31, 2017, to ¥20.32 in the current nine-month period.

Taking a look at operating income, the Japanese brokerage posted a notable drop of 34.6 percent year-on-year. This saw operating income falling to ¥2.73 billion in the nine-month period in 2018.

Ordinary income fell by the same percentage as operating income – 34.6 percent year-on-year to hit ¥2.76 billion. Profit didn’t do much better, with the nine months ended December 31, 2018, achieving a profit of ¥1.93 billion, 34.4 percent less than the same period in 2017.

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