Q1 rebound was driven by market volatility; H1 will test its repeatability

FY2027-Q1 operating revenue was ¥3,974 million, operating profit was ¥2,097 million, ordinary profit was ¥2,080 million, and net profit attributable to owners of the parent was ¥1,426 million. Operating profit increased 50.2% year on year, representing 30.0% progress against the full-year forecast of ¥7,000 million, while operating revenue reached 25.3% of the forecast. The operating margin was approximately 52.8%, up 6.6 percentage points from approximately 46.2% in the same period of the previous year.

By contrast, FY2026 operating revenue was ¥13,218 million and operating profit was ¥6,161 million, down 1.6% and 7.1% year on year, respectively. The operating margin also declined 2.8 percentage points, from 49.4% to 46.6%. Low-volatility, range-bound markets throughout the year constrained revenue opportunities, while a sharp market move in Q4 lifted standalone operating revenue to ¥4,220 million and operating profit to ¥2,320 million. Market conditions therefore made a substantial contribution to the recent improvement.

The company attributed the Q1 profit increase to market volatility accompanying currency intervention in April and May, instability in the interest-rate markets for certain currencies against the backdrop of the situation in the Middle East, and increases in customer accounts and assets under custody. In H1, the key points to monitor are standalone Q2 operating revenue and operating profit, trading volumes once market volatility has subsided, and revenue contributions by currency pair. As no cash flow statement was prepared for Q1, another point for verification is whether profit translated into actual cash generation in the H1 results.