GMO Financial Holdings (7177) Q3 2024 earnings summary

Executive summary

• Achieved record-high operating revenue for Q3 YTD at ¥40,420 million (+5.4% YoY), but profit declined due to a ¥6,700 million loan loss provision in the Thai securities business.

• Net operating revenue for Q3 YTD was ¥37,354 million (+4.0% YoY), with net income dropping 46.3% YoY to ¥3,509 million.

• Q3 (July–September) saw a significant profit rebound sequentially as loan loss provisions decreased from the previous quarter.

• The Thailand securities business will end margin trading services as of December 20, 2024, with potential for further provisions if collateral values decline.

Financial highlights

• Operating revenue for Q3 YTD: ¥40,420 million (+5.4% YoY); net operating revenue: ¥37,354 million (+4.0% YoY).

• Operating income for Q3 YTD: ¥8,679 million (−23.8% YoY); ordinary income: ¥7,978 million (−28.7% YoY); net income: ¥3,509 million (−46.3% YoY).

• Q3 (July–September) operating income: ¥3,734 million, up 530.3% from Q2.

• Total assets: ¥1,156,908 million (+¥31,409 million from previous year-end); net assets: ¥48,289 million (+¥1,848 million).

• EPS: ¥29.74 (basic) for the period.

Outlook and guidance

• Aims to complete loss processing for the Thai securities business within FY2024 and is considering withdrawal to minimize future loss risk.

• No consolidated earnings forecast disclosed due to high sensitivity to economic and market conditions in securities, FX, and crypto asset businesses.

• Key monthly business indicators such as FX trading volume, stock brokerage commissions, CFD trading, and crypto asset trading are disclosed instead.

• FY2024 dividend payout ratio target is 50%+ with quarterly dividends.