Kabu, a subsidiary of Mitsubishi UFJ (MUFJ), released its preliminary financial results for April this Monday. The securities brokerage firm saw a substantial decrease in commission, trading and fee-based revenues.
These decreases are largely explained by the firm’s decline in trading volumes for April. As reported by Finance Magnates, the company saw a precipitous decrease in trading activity in April – continuing a trend that has seen declining trading volumes for the firm as 2018 has progressed.
An ongoing decline in trading volumes has meant an ongoing decline in revenues. April saw the firm posting total revenues from brokerage services of ¥594 ($5.4 million). This was down from ¥780 million ($7.12 million) in March – a 24 percent reduction that matches almost exactly the decrease, in percentage terms, of the firm’s over-the-counter FX (OTC) trading volume from April to March.
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Kabu also saw a decline in revenues from acceptance fees. These decreased from ¥918 million ($8.38 million) in March to ¥740 million ($6.76 million) this April. This was equivalent to a 20 percent decline.
Less significantly, in monetary terms, was Kabu’s decline in trading gains for April. The firm saw a decline from ¥124 million in trading gains in March to ¥89 million last month. Though this was not a significant amount of revenue loss when compared to other, larger parts of the company’s business, it was still a 29 percent reduction.
It wasn’t all bad news for Kabu this April as the firm saw a slight increase in revenues from business-to-business-to-consumer revenues. These increased from ¥137 million in March to ¥138 million in April – a 0.7 percent increase.