WRITE for ATol ADVERTISE MEDIA KIT GET ATol BY EMAIL ABOUT ATol CONTACT US
WSI
Asia Time Online - Daily News
             
Asia Times Chinese
AT Chinese



    Japan
     Jan 31, 2006
Online brokers log record profits

TOKYO - All five of the leading online securities firms had by Friday posted record profits for the April-December period, thanks to a surge in commission revenue from individual investors on the back of active stock trading.

At each company, net profits for the nine-month period rose, while revenue was boosted by frequent traders as well as by first-time users of Internet brokerages.

Matsui Securities reported Friday that group net profit shot up



54% during the nine-month period to 14.2 billion yen (US$120.7 million).

Commission revenue at the firm rose sharply due to the upswing in stock trading during the October-December quarter, while there was also aggressive use of margin trading, where investors use funds and stocks borrowed from securities firms.

Pretax profit for the nine-month period was 25.2 billion yen.

"We believe we can reach our initial pretax profit target of 33.3 billion yen because January figures are stronger than December's," Matsui Securities president Michi Matsui told reporters.

Also on Friday, Rakuten Securities said its group operating revenue, the equivalent to sales at non-financial companies, more than doubled to 20.91 billion yen, and net profit jumped 366% to 6.47 billion yen. It attributed the increases to efforts to lure investors with fee cuts.

Meanwhile, E*Trade Securities saw its parent-only after-tax profit climb 170%. The firm started compiling results on a consolidated basis this fiscal year, so no year-on-year group comparisons can be made.

Monex Beans Holdings saw its group net profit go up 73% to 9.14 billion yen, while kabu.com Securities logged a parent-only net profit gain 66% to 4.71 billion yen.

As of December 31, the five firms held a combined total of almost 2.68 million accounts, a gain of nearly 70% on the year.

E*Trade Securities opened its millionth account Wednesday. "The number of young people and women opening accounts is increasing due to the strong trend away from savings and to investment," said president Taro Izuchi.

According to the company, since April, 60% of new account holders have been first-timers.

(Asia Pulse/Nikkei)

 

 
 



All material on this website is copyright and may not be republished in any form without written permission.
© Copyright 1999 - 2006 Asia Times Online Ltd.
Head Office: Rm 202, Hau Fook Mansion, No. 8 Hau Fook St., Kowloon, Hong Kong
Thailand Bureau: 11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110