Kabu Finishes April with a Substantial Decline in Revenues from March

There has been a gradual decline in revenues since the beginning of the year

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.

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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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Acceptance down

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.

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