Crypto trading drives a 457% increase in profit for Monex in Q2

Alan Sayer
July 28, 2021 1:59 pm

The Monex Group has released its Q2 financial figures recently. These show that crypto trading has become the most significant portion of its profit base from April to June 2021. The company made a pre-tax profit of ¥11.1 billion, this came from revenues of ¥27.32 billion. This revenue increased by ¥13.02 billion from the Q2 2020 revenue, almost a 100% growth. 

Although revenues have experienced a dramatic increase, the same cannot be said for expenses. The Q2 2020 expenses stood at ¥12.3 billion, with 2021 showing a slightly higher figure at ¥16.2 billion. This means that a large proportion of the revenue increase will go towards making up profits for the company. 

The pre-tax profit of ¥11.1 billion is almost ten times the amount for Q2 of 2020, which stood at ¥1.99 billion. This is clearly a much more considerable increase when compared to the rise in revenue. As already mentioned, revenue increased by almost 100%, while expenses only increased by around 30%. This is what allowed the pre-tax profit to increase by a much larger magnitude than revenue.

Monex Group

Monex has passed this financial improvement onto shareholders. The basic earnings per share increased by more than 400% in the same period as the previous year. Shareholders have seen a rise from ¥5.57 per share in 2020 compared to ¥28.18 in 2021.

Crypto has helped to drive this increase in revenue and profits. The figures show that crypto trading brought in more than 80% of the total profit for the Monex Group in Q2 2021. Out of the ¥11.1 billion total pre-tax profit, crypto trading was responsible for ¥9 billion. 

This comes from the crypto exchange Coincheck, which Monex acquired in 2018. Part of the reason for the significant increase in revenue and profits is that Coincheck was undergoing a period of trading trouble after it was the victim of theft. Monex has been able to rebuild trust in the brand, and as such, revenues have increased. The figures also show that while Bitcoin is still a big name in the crypto world, it is not as dominant as it once was, making up just 12% of the total Coincheck revenue.

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Having gained a degree in economics, Alan entered the world of financial services starting his career in London and then moving to New York for a number of years. His first post at a City bank saw him establish a reputation as an forex trader. Having recently returned from New York after eight successful years, Alan is now a prosperous trader in his own right concentrating on commodities and forex.
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