Record revenues in Q3 for Hong Kong FX broker KVB Kunlun

KVB Kunlun office

Hong Kong retail forex broker KVB Kunlun Financial Group Ltd (HKG:8077) has released its third quarter financial report, with the company seeing record Revenues and significantly improved profitability so far in the second half of the year.

In Q3, KVB Kunlun reported total Revenues of HK$181.5 million (USD $23 million), up 38% from Q2’s HK$131.5 million. That also easily topped KVB’s previous best ever quarter, Q2-2015, in which KVB brought in HK$157.3 million.

KVB Kunlun Q3 2017 results

KVB earned net profit of HK$25 million in the quarter, versus just HK$3 million during the first six months of the year.

KVB shares rose significantly last month after the company issued a positive earnings surprise note ahead of the release of complete Q3 results. The shares also got a bump this summer after KVB revealed that it is in the midst of an attempt to move its share listing from the Hong Kong “Growth Enterprise Market” (or GEM) to the HKEX Main Board.

KVB stated that during the nine months ended September 30, 2017, as the overall volatility was reduced in the foreign exchange (“FX”) and commodity markets, the company experienced a period of unfavorable trading conditions. This resulted in a decrease in gross trading revenue. However, new client registrations and the total clients’ trading volume increased during the period under review, compared to the figures of the first three quarters of 2016.

XAU/USD was the company’s mostly traded product, followed by EUR/USD, USD/JPY, USCRUDE and GBP/USD.

The Group recorded total Revenues of approximately HK$378.6 million for the nine months ended 30 September 2017, representing an increase of approximately 47.8% from approximately HK$256.2 million for the corresponding period in 2016. The Group recorded a profit of approximately HK$28.1 million for the nine months ended 30 September 2017 compared to the profit of approximately HK$31.1 million for the same period last year.

Due to an increase in trading volume for the nine months ended 30
September 2017 compared to the same period last year, there was an increase in total income. Notwithstanding the above, there was a decrease in the net profit, which was mainly due to low volatility in the foreign exchange, commodity and index markets during the nine months ended 30 September 2017 compared to the same period last year.

KVB’s complete Q3-2017 results report can be seen here (pdf).

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