Financial service provider KVB Kunlun (HKG:8077) generated a consolidated income of HKD 406.8 million in 2015, of which HKD 343.1 million were from leveraged forex and other trading activities, the company’s latest annual financial report indicated. The group’s leveraged and other trading income jumped by 138% from HKD 144.2 million in 2014, mainly due to the higher trading volume and market volatility.
The company’s consolidated profit soared to HKD 94.7 million in 2015, jumping 170% from the previous year. Its consolidated revenue exceeded HKD 406.8 million last year, which is more than double compared to the previous year’s revenue of HKD 188.6 million.
The brokerage group saw in 2015 significant revenue increase throughout all markets in which it operates. Although the group is based in Hong Kong, the majority of its revenue was generated from activities in New Zealand. An overview of KVB Kunlun’s consolidated revenue segmented by territorial markets follows:
The Hong Kong group’s total assets were close to HKD 1.1 billion at the end of 2015, posting a significant growth from HKD 656.5 million a year earlier.
The notional principal amounts of the outstanding forward forex contracts also posted a significant increase of 330% to HKD 10.6 billion at end-2015 from HKD 2.5 billion at the end of 2014.
EUR/USD and XAU/USD were the most popular trading products overall last year, followed by GBP/USD, AUD/USD. In forex category, EUR/USD, GBP/USD and AUD/USD were the top three pairs in term of trading volumes.
In comparison, Guotai Junan International Holdings, another Hong Kong brokerage, posted a consolidated revenue increase of 37.4% to HKD 2.3 billion in 2015. Meanwhile, Japanese broker Rakuten Securities had a revenue of nearly JPY 50.4 billion in 2015, up 16% on the year. On the other hand, FXCM and Gain Capital, US’ largest forex brokers in terms of trading volume, had revenues in 2015 of $67.0 million and $435.4 million, respectively.
The brokerage intends to continue investing in new financial services and products, upgrading itS trading platform, and expanding its operations in China and Japan, including via mergers and acquisitions.
KVB Kunlun provides financial services, including leverage traiding in forex, index contracts for difference (CFDs), precious metals, commodities, but also physical forex and securities trading. The group companies are licences by regulators in New Zealand, Australia, Canada and Hong Kong.
The group consists of the companies KVB Kunlun Pty Ltd., KVB Asset Management Company Ltd., KVB Kunlun New Zealand Ltd., KVB Kunlun International(HK) Ltd., KVB Kunlun Securities(HK) Ltd., KVB Kunlun Asset Management(HK) Ltd., KVB Kunlun Canada Inc., KVB FX Ltd., and KVB FX Pty Ltd.