Monex Group posts a 474% increase in pre-tax income
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Monex Group, based in Japan, has released its financial results for the 2023 financial year. The results show a notable drop in revenue and profitability annually. In the results, the company reported a significant growth in US profitability while the income also increased significantly.
Monex Group reports income uptick
The financial services company reported a pre-tax income of JPY 2.2 billion in the recently released financial results, representing a 474% increase. The Japanese group ended the last quarter of the 2023 financial year between January and March with a total operating revenue of over JPY 19 billion. The operating revenue jumped by 5% from the previous quarter.
The EBITDA came in at 34% higher than JPY 4.5 billion. Monex also owns many financial service businesses in Japan and other countries. The company also owns TradeStation in the United States and runs a cryptocurrency exchange in Japan known as Coincheck. It also operates several core asset businesses.
During the fourth quarter, the conglomerate reported JPY 405 million from its Japanese operations alone. The majority of profits reported by the company came from its US business segment at JPY 1.9 billion.
There were significant valuation gains on several portfolio companies, which resulted in profits of JPY 187 million from the company’s investment division. However, the same profitability was not reflected in the company’s crypto operations, as they reported a loss of JPY 152 million despite a drop in advertising expenses.
Boosting the growth of different segments
The conglomerate also shared more insights into its Japanese operations. The conglomerate said that despite a drop in FX revenues because of the declining market volatility, there were significant gains in how the company managed its held USD deposits and the revenues derived from the mutual fund business. These sectors skyrocketed the company’s profitability and resulted in significant gains.
The report by Monex also said that the revenues reported by the company came from a diversified portfolio at Monex Securities. The revenue diversification was attributed to growth in other areas apart from the Japan entities brokerage commissions. The revenue growth in these areas triggered the overall gains seen by the company during the quarter.
There has been a notable increase in US profitability, with the growth being attributed to increased commissions and a rise on trading volume. The interest income reported from customer cash deposits also increased because of a surge in US interest rates. The US Federal Reserve has increased interest rates severally over the past year, which has affected most businesses.
The operating revenue reported by the conglomerate for the entire financial year also dropped by 10.7% to JPY 79.3 billion. The pre-tax profits for the year also dropped by 77.6% to JPY 4.66 billion. The net profits reported during the period came in at JPY 3.3 billion, representing a 74.5% decline.
