Monex Group, a Japanese forex brokerage, reported on Friday its preliminary consolidated net profit posted a drop of 90.6% to JPY 300 million in April-December 2016, or the first three quarters of the current fiscal year (FY), ending 31 March, 2017. In comparison, a year earlier the group’s net profit for the same reporting period amounted to nearly JPY 3.2 billion.
Meanwhile, Monex Group’s consolidated operating revenue went down by slightly over 20% to JPY 33.5 billion in the nine months under review, down from JPY 41.9 billion a year earlier.
The group’s overall significant drop in financial metrics was due to a significant loss of JPY 447 million it generated in Q2 of the FY. Otherwise, during the rest of the quarters Monex Group performed strong.
Monex Inc’s financial performance dives in Q1-Q3 FY 2017
In a separate statement Monex Group’s said its main subsidiary in Japan, Monex Inc., registered a 55% annual drop in profit to JPY 1.15 billion in April-December. The relapsing result was on the back of a declining net operating revenue of JPY 19.5 billion, or 21% lower on the year. Meanwhile, Monex Inc.’s operating revenue dropped by an annual 90% to JPY 19.5 billion for the reporting period.
In comparison, for the same period a year earlier the company’s profit exceeded JPY 2.5 billion and its net operating revenue was JPY 24.7 billion.
Monex Inc.’s assets exceeded JPY 654.7 billion at the end of December, up from some JPY 559 billion at end-March, or the end of the preceding FY.
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.
It consists of Japan-based holding company Monex Group Inc. and its Japanese subsidiaries Monex Inc., Monex Ventures, Trade Science Corp., Monex Hambrecht, and Monex-Saison-Vnaguard Investment Partners, which is a joint venture in which the group holds a majority stake. In addition, the group owns TradeStation Group, which is in charge of the operations in North America and Europe, and Monex International, aka Monex Boom Group, which is in charge of the Asian business.