Japanese retail FX broker, Kabu has released its December month performance figures this Thursday, recording an overall positive momentum and results showing an uptick from November figures. Kabu is a subsidiary of Mitsubishi UFJ (MUFJ).
For the company, November month was a disappointing one as it experienced an overall decline in performance including net revenue, trading revenue, brokerage commissions and more. The December volume and revenue for the firm is more of a relief and welcome turnaround.
Compared to November 2018, the income from broker commission fees increased to ¥599 million in December 2018, representing an increase of ¥7 million or 1.2 per cent. The increase was contributed by an uptick in revenues from the futures and options trading during the month. The revenue generated from the Futures and Options in December 2018 came in at ¥88 million, which 15 per cent higher or ¥13 million as and when measured against the previous month.
But, despite the increase in F&O revenue, the revenue from the equity credit decline to completely offset the gains. The revenue from equity credit in December was ¥209 million which is 5 per cent or ¥12 million higher compared to the November figures.
Overall the net operating revenue increased to ¥1.667 billion, which is 9 per cent or ¥154 million higher compared to the November figures. In the November month, the net operating revenue dropped by almost 14.37 per cent or ¥254 million month-on-month.
In December, the revenue from acceptance fee was ¥837 million, against the ¥717 million in November, which is about 14 per cent or ¥120 million month-on-month increase. The Non-Traditional revenue during the month of December also witnessed solid growth. It increased by 28.4 per cent or ¥195 million to reach ¥787 million. In November, the revenue from the Non-Traditional sources declined by about 20 per cent month-on-month.
Non-Traditional revenue is the sum of revenues that excludes API revenue, stock brokerage commissions excluding financial product brokerage and credit financial balance.