The Monex Group has published its consolidated financial results for the third quarter of its fiscal year ending on the 31st of March, 2020, revealing a drop in quarterly profit for the .
The Monex Group operates numerous retail brokerages. The company’s financial results for the third quarter for its 2020 fiscal year actually details the company’s performance for the nine months from the 1st of April 2019 until the 31st of December 2019.
During this nine-month period, the Japanese financial giant reported total revenue of ¥38.7 billion. Due to a reduction in operating revenue, the revenue for the period has fallen by 5.0 per cent from the ¥40.8 billion revenue reported in .
Quarterly profit for the nine-month the period was ¥2.1 billion, whereas the nine months ended December 31, 2018, achieved a quarterly profit of ¥2.6 billion. Therefore, quarterly profit has fallen by 18.4 per cent year-on-year.
Monex Group is planning to transform Japan unit
According to the statement released this Friday, Monex is planning on transforming its Japan segment, which includes its retail brokerage Monex, Inc., from a brokerage model into an asset management model.
This change “aims to increase client assets after deducting commissions and management fees. Japan Catalyst, Inc. will drive the development of asset-management and asset-creation businesses,” the report said.
Breaking down the results into segments, trading volume in Monex Securities increased more than market growth, with segment profit increased to ¥900 million during the third quarter.
Commission-free race hurts US operations
In the United States, which has been a region of strength for the Group, the third quarter did not deliver as strong as a performance, with segment profit falling to ¥300 million, driven down by the lower interest rate and commission-free trading environment.
Coincheck, the Group’s cryptocurrency exchange which has long been a sore point for the Japanese financial services firm, yet again reported a segment loss due to prolonged lower market trading volume.
“Coincheck has drastically reduced costs to cope with possible low market trading volume, with the aim to secure an increase in profits during a market recovery,” the company said in the report.
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