Rakuten Securities recently reported its earnings for FY 2020. The firm said that its operating revenue increased 30% on a year-on-year basis.
Great results in 2020
Rakuten Securities Inc. is one of the largest forex brokers in Japan. It recently reported its financial results for the fiscal ending December 31, 2020, which highlighted upbeat revenues and increasing profits. The firm’s operating revenue was ¥72 billion ($698 million), which was 30% higher compared to the ¥56 billion earned in 2019. The firm posted similar results in other areas as well. The net income of the firm was ¥15 billion ($145 million) which was 33% higher compared to 2019.
The Tokyo-headquartered firm said that it holds ¥2.4 trillion ($23 billion) in assets which is almost 335 higher than the previous year.
What led to the massive increase in profits?
Forex firms were able to leverage the stay-at-home orders due to the pandemic which led to increased trading. A larger number of investors opened new accounts with the firm. A massive boom in the retail trading market led to the firm tripling its user base in some markets in 2020. The Rakuten Group will announce its consolidated financial reports for the fiscal on February 12, 2021.
Rakuten Securities has a strong presence in Japan and operates regional businesses in other regions like Hong Kong, which came on the heels of an FXCM business acquisition about five years ago. It also operates retail forex brands in Malaysia and Australia in a joint venture partnership with Kenanga Investment Bank Berhad. The firm is a part of Rakuten, an online giant that runs the world’s fourth-largest eCommerce business.
Rakuten is also interested in the cryptocurrency space and has already launched its services as Rakuten Wallet. The firm acquired Bitnet, a Bitcoin payments startup four years ago, and also opened a blockchain lab in the UK. It is one of the most prominent names in the Asia-Pacific working in the crypto sector.
This is a syndicated post from https://www.cryptovibes.com/blog/2021/01/27/rakuten-securities-reports-solid-performance-in-fy-2020/