One Financial Markets Posts Sharply Lower Profit, Dubai Branch Disappoints

C B Financial Services Ltd, trading as One Financial Markets, has released ‎its annual report and year-end financial statements for the period ending December 31, 2017. The latest results on UK Companies ‎House showed a notable slump in the FCA-regulated broker’s revenues in ‎conjunction with a sharply lower net profit for the reported period.‎

For the year ending December 31, 2017‎, One Financial Markets’ turnover ‎dropped to $28.4 million, down -25 percent relative to $37.7 million in 2016. ‎

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On the positive side, the company experienced a decline in administrative ‎expenses during the latest fiscal period, which were reported at $11.9 ‎million, decreasing by a factor of 11 percent year-over-year from $13.4 ‎million in 2016.‎

Operating income was also pointed lower during FY 2017, albeit still in the ‎black. One Financial Markets saw a reading of -$11.97 million, shedding 1.4 ‎percent year-over-year compared to $12.14 million in the year prior. Looking ‎at the group’s bottom line for the financial year, which factored out interest ‎receivable and other income, the company reported ‎a net profit of only ‎‎$239,664‎, sharply lower year-over-year when compared with $4.9 million in ‎‎2016.‎

C B Financial Services said in the filing that its net operating income ‎reduced due to lower client trading activity, as experienced by the wider ‎market. The company blamed FCA and European regulators’ proposals to ‎impose tougher rules for retail CFD, FX and spread betting providers.

If further explained: “Much of the year was focused on dialogue with ‎our core regulators, participating in the industry wide debate in which ‎firms used their best endeavours to explain to regulators that the ‎proposals would give little if any positive benefit to retail clients and in ‎most cases, would be detrimental or irrelevant to the quality of ‎customer outcomes.”‎

Against this background, One Financial Markets plans to launch several ‎new initiatives to help operations continue to grow without significant ‎impact from regulatory change or stress on the company’s balance ‎sheet. ‎

Setting sights on Saudi Arabia

Finally, the London-based frim noted that the performance of its Dubai ‎branch was disappointing, blaming the reluctance of the regulators to ‎fully embrace the retail market that they had only recently decided to ‎enter. As such, One Financial Markets has restructured this business to ‎focus on the institutional market and also moved its retail operations in ‎the Gulf to a new centre. ‎

‎“We will continue, in particular, to keep a close watch on Saudi Arabia ‎and the reforms set out in Vision 2030 to see the impact they have ‎both in the Kingdom and neighbouring states.” It added. ‎

Presently, One Financial Markets is authorized and ‎regulated by other global regulators, including the UK’s ‎Financial Conduct Authority (FCA) and Financial ‎Services Board (FSB) in South Africa.‎ The company offers global presence with local expertise through its wholly owned and affiliate offices throughout the Middle East, Europe, South America and Central and South East Asia.

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