Hong Kong Forex broker KVB Kunlun Financial Group Ltd (HKG:8077) has reported its unaudited consolidated interim results for the six months ending 30 June 2016, which showed an outperformance in the group’s leveraged foreign exchange (FX) trading income YoY, according to a KVB Kunlun statement.
The Cayman Islands registered company completed the first half of this year with an overall profit of HK$34.028 million ($4.38 million), dropping -3.4 percent YoY from HK$35.219 million in H1 2015. Furthermore, KVB Kunlun reported diluted earnings per share (EPS) of HK1.67 cents in H1 2016, a loss of -3.4 percent YoY from HK1.73 cents in HI 2015.
The company saw its leveraged foreign exchange (FX) and other trading income at HK$161.021 million ($20.75 million) during H1 2016, corresponding to a jump of 31.5 percent YoY from HK$122.412 million in H1 2015. In addition, fee and commission income increased in the first half of this year to HK$28.951 ($3.73 million), up 62.57 percent from HK$17.808 million in same period last year. This is mainly due to the higher trading volume and market volatility during the prior six months of 2016.
Moreover, the group saw just HK$2.919 million ($380,000) in cash dealing income during H1 2016, diving -45.5 percent YoY from HK$5.351 in H1 2015.
Why Ethereum Needs Layer 2 Solutions More Than EverGo to article >>
Total income for the first half of 2015 amounted to HK$189.571 million ($24.43 million) – this represents a gain of 22.6 percent YoY from only HK$154.675 million in H1 2015.
Consolidated operating expenses were HK$142.215 million for the H1 2016, a substantial jump of 36.2 percent YoY from HK$104.428 million in H1 2015.
Foreign currency exposure
During the reported period, KVB Kunlun recorded an exchange loss of approximately HK$5.0 million versus a gain of HK$7.4 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 1.4612 as at 31 December 2015 to 1.4071 as at 30 June 2016.
Earlier in April, the Hong Kong focused company expanded its partnership with Banclogix. The new technology services agreement, which worth upwards of $7.1 million, will allow Banclogix to provide software development and maintenance services, information technology infrastructure and project management services to KVB.
KVB Kunlun Financial Group Limited is a financial investment services company, provides 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.