Exclusive: GBE Brokers 2017 Figures Show €7.8m Revenues, Low Vol Bites

The low volatility in major FX pairs in the final quarter of 2017 led to some underperformance

According to an official audited statement of the annual accounts of GBE Brokers in 2017, the firm reports a total of €7.8 million of revenues. The document seen by Finance Magnates shows that the company’s operating profit declined in line with lower volatility in the latter half of the year.

Commenting to Finance Magnates, the company’s CEO Rifat Sayim and Head of GBE Prime, Ben-Florian Henke, stated that the decline was attributed to lower levels of volatility in the latter half of the year. A one-off administration accounting adjustment related to the company’s administrative expenses also played a role.

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GBE Brokers posted a decline in operating profits to about €150,000, a figure which is lower by about 60 percent when compared to 2016. The company retains a solid capital base with approximately €1.8 million of cash on its accounts.

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Looking at the composition of revenues, GBE Brokers posted a total of €2.7 million from commission income and €5.1 million from principal trading. The company’s annual compensation costs totaled €2 million for 24 employees.

Revival of Volatility

Like many other companies in the industry, GBE Brokers has been looking at higher volatility across major asset classes this year. The firm has been posting upbeat results during the first five months of the year, with ample volatility across equities and currencies.

Brokers who have avoided the cryptocurrency scene in the final quarter of 2017 have also managed to sidestep the crypto volatility trap which caught some brokers ill-prepared. The conservative approach on the part of some firms in the final months of last year saved them exposure to the most-risky asset class as classified by financial regulators worldwide.

The first half of 2018 seems to be putting brokerage businesses on track to report substantial profits in the coming months. The extra revenue before the implementation of ESMA’s lower leverage mandate is likely to provide a cushion for the industry before a possible increase in M&A deals.

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