KVB Kunlun Reports Strong Earnings in H1-2018 After Two-Consecutive Years of Weakness - The Industry Spread

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

KVB Kunlun Financial

KVB Kunlun Reports Strong Earnings in H1-2018 After Two-Consecutive Years of Weakness

August 21, 2018

KVB Kunlun FinancialThe Hong Kong-based retail forex brokerage group, KVB Kunlun Financial Group Ltd.  (HKG:8077) has released a strong set of numbers for the first half 2018, after two consecutive years of weak performance. During the period, the brokerage reported a sharp uptick in both revenue and profits.

The revenue for the first six months in 2018 came in at  HKD 306.2 million (USD $39.0 million) which is slightly lower compared to the second half of 2017 figures which were at HKD 317.8 million. But when compared to the January-to-June period of 2017, KVB’s revenue is higher by a sharp 55 per cent.

Net profits during the six months period came in at HKD 10.4 million against HKD 3.1 million for the first six months of 2017. In the second half of 2017, the company earned HKD 28.1 million in net profits. The growth is largely driven by broker’s leveraged trading revenues and in the first half, KVB raked in HKD 233.46 million ($29.74 million) in revenue from its leveraged trading business which is 47.8 per cent increase on last year’s HKD 157.97 million ($20.12 million). According to the company statement, the boost in the H1-2018 earnings was a result of income from the fair value gain on the derivative portion of convertible bonds.

CITIC Securities Company LimitedThe firm also reported a massive increase in expenses which is at HKD 188.78 ($24.05 million) for the H1-2018, an increase of whopping 44.9 per cent from HKD 273.52 million ($34.84 million). Pre-tax profits mainly contributed to the massive increase in expenses.

Owned by China’s CITIC Securities Company Limited (SHA:600030), KVB Kunlun is aggressively expanding its operation in worldwide overseas Chinese communities. During the first half, KVB raised HK$200 million (USD $26 million) in the capital, in an investment led by Chinese insurance and investment giant Ping An Insurance (Grp) Co of China Ltd (SHA: 601318). CITIC which holds almost 59 per cent of the entity is looking to trim down its holdings near to 51 per cent.

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