Rakuten Group Plans to Merge Financial Businesses
By Kosaku Narioka
Rakuten Group plans to merge its various financial services, including its listed online banking unit, as part of its efforts to expand their client base and improve their competitive advantage.
The Japanese e-commerce giant said Monday that the company and Rakuten Bank agreed to start talks over the potential integration of financial services, including banking, credit-card, brokerage and insurance businesses.
Rakuten Bank is expected to remain listed on the Tokyo Stock Exchange after the potential restructuring, which is expected to take effect in October, the companies said.
Rakuten Group said it would discuss the possibility of not listing its brokerage business, Rakuten Securities Holdings, which the group had previously planned to list separately.
The group's financial segment has been the e-commerce giant's profit center in recent years as its mobile business has consistently posted losses.
Profit from its financial segment, including its online banking, brokerage and credit-card services, climbed 37% to 122.915 billion yen ($812.2 million) in 2023, helping support the group's bottom line.
Rakuten Group's net loss narrowed to Y339.47 billion last year from Y377.22 billion in 2022.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
April 01, 2024 00:33 ET (04:33 GMT)
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