Japanese Retail Broker Kabu Reports Lowest Monthly Revenue in January 2019 in the Last Three Years

kabuMitsubishi UFJ Financial Group subsidiary, Kabu released its preliminary financial results for January 2019, reporting lowest monthly revenue in the last three years. 

In terms of commission fees, the broker managed to rake in 461 million Yen ($4.61 million) in January 2019, the lowest monthly revenue generated since 2016. For the five-month period till January, the firm averaged 619.6 million yen ($5.61 million) in brokerage fee-based revenue.

The brokerage revenue from different instruments that Kabu offers to traders witnessed a fairly evenly decline. The revenue derived from equities trading dropped to 209 million yen ($1.89 million), which is nearly 33 per cent lower 301.6 million yen ($2.73 million) in the equities trading-based revenue that the firm averaged in last five months. The market-making segment, the firm’s largest contributor to the revenue also experienced a drastic slump in January 2019.

The market-making activities reported at 595 million yen ($5.38 million) in January, a fall of 242 million yen ($2.19 million) from December 2019. The net operating revenue totalled 1.23 billion yen ($9.26 million), which is $4 million lower from the December 2018 figures

E*TRADE’s DARTs Came in Lower in January 2019, both Monthly and Yearly Wise

E*TRADE Financial Corporation released its daily average revenue trades (DARTs) for the month of January 2019, pointing lower figures than December 2018 figures. In the month, the DARTs came in at 282,499 contracts per day, a decrease of 9 per cent month-over-month from 310,889 ‎in December 2018. On the yearly time frame, the figure is 10 per cent lower year-over-year, which came in at 315,572 in January 2018.

In terms of new accounts growth, the group added 90,174 gross new brokerage accounts on January 2019, compared to 74,598 accounts in December 2018. The latest figures also include data from the recent acquisition of brokerage accounts from Capital One. This brings the company’s overall accounts approximately to 7 million accounts in January 2019, compared to 6.95 million accounts in December 2018. 

The broker’s customer asset rose to $453 million in January 2019, which is 12 per cent higher year-over-year from $410 million in January 2018. On a monthly basis, the January figures are 9 per cent higher from $436 million in December.