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Monex Japan Profits Drop, Overseas Business Leads to Small Q3 Loss

The Japanese brokerage business of Monex Group was the best performing for the company in the quarter ending December 31st.

The Japanese business of Monex has cushioned the impact of the global operations of Japanese financial services company Monex Group. The firm reported its quarterly results for the quarter ending on the 31st of December. By Japanese accounting standards this is the third quarter of fiscal 2016.

The Japanese brokerage business of Monex Group, Monex Inc has reported revenues increasing by 31 per cent when compared to the same period last year to ¥27.4 billion ($232 million). That said, the increasing stream of revenues for the Japanese retail broking business of the company in the third quarter did not help the bottom line.

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Monex Inc reported profits falling by a third to $2.5 billion ($21.6 million) when compared to the same period last year. The decline comes amid a reduced value of client collateral held at the brokerage, which dipped by almost 3 per cent when compared to the end of March 2015 to ¥239.5 trillion ($2.11 trillion).

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The results of the Japanese brokerage did not help the financial results of the Monex Group. The company fully owns the U.S. centric business TradeStation, and retail foreign exchange brokerage IBFX Inc. Back in 2014, the latter sold its MetaTrader accounts to FXCM, leaving the business centralized on clients of the TradeStation platform.

Looking at the figures released for the whole group of companies, the Monex Group announced losses in the third quarter declining 12 per cent when compared to the previous quarter to ¥12.9 trillion ($109 million). This resulted in a net loss for the quarter totaling ¥396 million ($3.35 million).

Total revenue figures of Monex Group for fiscal 2016 until the end of December 2015 amounted to 41.9 trillion which is higher by 13.3 per cent when compared to a year ago. At the same time the company is registering year-on-year profit growth totaling 67.5 per cent at ¥3.2 trillion ($27.9 million) after taxes and ¥4.6 trillion ($39 million) before taxes.

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