Monex Group, the owner of the Japanese forex brokerage Monex Inc. reported the preliminary results of the subsidiary for the first half of the fiscal year ending on 31 March, 2017 – from April 1 2016 to September 30, 2016.
The report shows a sharp 66.9% decline of the profit to JPY 1.1 billion from JPY 3.3 billion in the same period of last year.
The operating and the net revenues also posted a decline – of 24.2% and 25.8%, respectively. At the same time, the operating income decreased 90.6%.
The assets of Monex Inc. also dropped from the start of the period under review to the end. As of March 31, 2016, the total assets of the brokerage were nearly JPY 559 billion, while in the end of September they declined to JPY 548 billion. The net assets decreased from JPY 53.4 billion to JPY 52.2 billion over the same period.
The H1 2017 FY report is much in line with the Q1 results, which were released in August. They showed Monex remains profitable, but 85% less than in the same quarter of the previous financial year. The operating revenue in April, for example, was below the lowest levels of FY 2016.
Several months within the reported period were also particularly bad for Monex. In May the daily average revenue trades (DARTs) fell to its third lowest number for all time. The decline continued in July and August, while in September the results showed signs of recovery.
Monex Group operates internationally and consists of a group of companies based in Japan, Asia, North America and Europe. Monex Group operates under three retail trading brands – Monex, TradeStation and Boom. The majority, or about 60%, of its revenue comes from operations in Japan and the remaining 40% from operations in the US.