KVB Kunlun Financial Group Limited has reported its Q1 2016 financials for the period ending March 31, 2016, which were characterized by sizable increases in income and overall profit margins, almost achieving triple-digit growth YoY, per a recent KVB Kunlun shareholders report.
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The latest release follows after an earlier forward guidance report to shareholders issued by the company back in February, which portended a sizable boost to its profits for the year ending December 31, 2015, which was estimated in the triple digits. The report found KVB’s profits attributable to equity holders in excess of 250.0% YoY relative to the fiscal year ending December 31, 2014.
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Fast forwarding to Q1 2016, KVB Kunlun disclosed a total income of $13.6 million (HKD 105.8 million), which constituted a sharp rise of 88.6% YoY from just $7.2 million (HKD 56.1 million) in Q1 2015. Of these gains, the largest boost was attributed by KVB’s leveraged foreign exchange (FX) and other trading income, which soared 116.5% YoY to $11.7 million (HKD 90.8 million) from $5.4 million (HKD 41.9 million).
In tandem with these increases, KVB Kunlun also reported an increase in its total expenses, which during Q1 2016 climbed to $9.1 million (HKD 71.0 million) from $5.1 million (HKD 39.7 million) in Q1 2015, justifying a surge of 78.8% YoY. The primary components of these expense increases were largely attributed to staff costs across the company, as well as fees and other various commission expenses.
Finally, regarding the overall profit margins at KVB Kunlun in Q1 2016, after factoring in total expenses, taxes, and finance costs, the group yielded a figure of $9.1 million $3.1 million (HKD 24.4 million) during the quarter, having bested its 2015 equivalent of $9.1 million $1.6 million (HKD 12.6 million) by 93.7% YoY.
Late last month, KVB Kunlun entered into a technology services agreement worth upwards of $7.1 million with Banclogix.The new information technologies services deal will take place over the next three years, with payments being made on December 31, 2016, 2017, and 2018. Previously KVB and Banclogix had entered into a duality of agreements back in early 2014 and December 2015, which have since expired.