KVB Kunlun Financial Group Ltd (HKG:8077), a Hong Kong-focused forex broker, has reported its unaudited consolidated results for the full financial year ending December 31, 2016, which showed a downbeat performance in the group’s leveraged foreign exchange (FX) trading income year-on-year, according to a KVB Kunlun statement.
The Cayman Islands registered company completed last year with an overall profit of HK $38.7 million ($4.99 million), dropping -59.1 percent year-on-year from HK$94.7 million ($12.2 million) in 2015. Furthermore, KVB Kunlun reported diluted earnings per share (EPS) of HK1.90 cents in 2016, a substantial loss of nearly 60 percent year-on-year from HK4.65 cents a year ago.
The company saw its leveraged foreign exchange (FX) and other trading income at HK$306.03 million ($39.4 million) during 2016, corresponding to a loss of -10.7 percent year-on-year from HK$343.06 million ($44.17 million) in 2015.
In a different vein, fee and commission income increased last year to HK$55.35 ($7.12 million), up 13.4 percent from HK$48.8 million in 2015. This is mainly due to the higher trading volume and market volatility during the financial year of 2016.
Moreover, the group saw just HK$4.2 million ($547,000) in cash dealing income during 2016, diving -63.0 percent year-on-year from HK$11.5 a year earlier.
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Total income for 2016 amounted to HK$362.6 million ($46.7 million) – this represents a loss of -10.9 percent year-on-year from HK$406.8 million in the year prior.
Consolidated operating expenses were HK$307.2 million for 2016, a jump of 11.2 percent year-on-year from HK$276.7 million in 2015.
Foreign currency exposure
During the reported period, KVB Kunlun recorded an exchange loss of approximately HK$5.8 million versus HK$1.3 million in 2015. This was mainly due to the month end translation of monetary assets denominated in foreign currency into local reporting currency by the subsidiary of the group in New Zealand. The main contributor to this result was the depreciation of USD and the exchange rate of USD/NZD changed from approximately 1.4831 on 31 December 2015 to 1.4362 on 31 December 2016.
KVB Kunlun Financial Group Limited is a financial investment services company providing various financial products and services in New Zealand, Australia, and Hong Kong. The company provides leveraged foreign exchange and other trading services cash dealing business, and securities trading referral services. KVB Kunlun Financial Group Limited was founded in 2001 and is headquartered in Kowloon, Hong Kong.