Rakuten Securities Inc, one of the largest foreign exchange brokers in Japan, has reported its financial results for the fiscal first quarter ending March 31, 2020, which were characterised by upbeat revenues and profits, according to a Rakuten statement.
Rakuten Securities yielded an operating revenue of ¥17.6 billion ($161 million) during the Q1 2020, a gain of 20 percent from ¥14.3 billion in the year earlier.
The same narrative was noted across the profit attributable to owners of the parent company (net income), with the figure coming in at ¥3.9 billion ($36.4 million) which is higher by 16.7 percent compared to its 2019 equivalent.
In terms of overall assets, the Tokyo-headquartered brokerage currently holds ¥1.87 trillion ($17.5 billion), virtually unchanged from which it was at the end of the previous fiscal year.
Rakuten Securities is one of the largest Japanese FX brokers, and operates regional businesses including in Hong Kong, following an acquisition of one of FXCM’s prior businesses five years ago.
Rakuten Securities, which also operates retail foreign exchange brands in Australia and Malaysia via a joint venture with Kenanga Investment Bank Berha, is part of E-commerce giant Rakuten. Rakuten.com runs the fourth largest e-commerce business, trailing only behind Alibaba, eBay and Amazon.
Leveraging synergies within the group, Rakuten has ventured into the digital asset space with the launch of its cryptocurrency exchange, known as “Rakuten Wallet.”
The move comes nearly four years after the e-retailer acquired Bitcoin payments startup Bitnet and opened a blockchain lab in the UK., becoming one of the more noteworthy firms in the Asia-Pacific region to hop on the cryptocurrency bandwagon.
Through the smartphone app, customers can make transactions for crypto asset trading accounts, such as depositing/withdrawing Japanese yen and crypto assets. Rakuten Wallet, formerly Everybody’s Bitcoin, is a wholly-owned subsidiary of Rakuten which acquired it for $2.4 million in August 2018.