Matsui Securities Co (8628) Q1 2025 earnings summary

Executive summary

• Operating revenues for 1Q FY2024 rose 12–12.5% year-over-year to JPY 9,895 million, driven by higher trading activity and increased margin transactions.

• Net operating revenues climbed 14.8–15% year-over-year to JPY 9,448 million, with net income up 22.6–23% to JPY 2,894 million.

• Ordinary income increased 18% year-over-year, and the ordinary income ratio improved to 43%.

• Enhanced digital services and new product offerings, including expanded U.S. stock coverage and FX promotions, contributed to customer engagement.

• Trading value grew 14% year-over-year, and average margin balance increased 26%.

Financial highlights

• Commissions received grew 7.6–8% year-over-year to JPY 5,218 million, with brokerage commissions at JPY 4,944 million (up 7.2%).

• Net trading income surged 40–40.3% year-over-year, mainly from FX trading.

• Net financial/interest revenue increased 22–22.5% year-over-year to JPY 3,535 million, driven by higher margin transaction balances.

• SG&A expenses rose 12–12.4% year-over-year, mainly due to higher personnel and advertising costs.

• Compared to the previous quarter, operating revenues and net operating revenues declined by 4% and 5%, respectively, while net income rose 5%.

Segment performance

• Mutual fund AUM and holders continued to grow, exceeding 100,000 accounts.

• U.S. equity trading value increased fivefold in 18 months.

• Forex business expanded with new features and higher customer engagement.