Kenanga Investment Bank announces 37.4% increase in net profit for the first nine months ended September 30, 2021

KEY HIGHLIGHTS

9M2021 vs 9M2020

  • Net profit of RM86.5 million, an increase of 37.4%
  • Net income of RM586.3 million, an increase of 1.4%
  • Operating expenses of RM490.7 million, a decrease of 1.7%
  • Return on equity of 11.3%, up from 9%
  • Earnings per share of 11.86 sen, an increase of 32.1%
  • Net equity trading investment income of RM56.0 million, an increase of 40.2%
  • Market share of retail brokerage of 23.5%, up from 21.9%
  • Asset Under Administration (AUA) to RM16.3 billion up by 18.4%

KUALA LUMPUR, MALAYSIA – Media OutReach – 25 November 2021 – Malaysia’s leading independent investment bank, Kenanga Investment Bank Berhad (“Kenanga” or “Group”) today announced a net profit of RM86.5 million for the nine-month period ending 30 September, 2021 (“9M21”), a jump of 37.4% from RM63 million for the same period last year (“9M20”).

Year-to-date (YTD) net income was RM586.3 million, an increase of 1.4% from the previous corresponding period, while operating expenses decreased marginally to RM490.7 million. Annual return on equity (ROE) based on 9M21 is 11.3% compared to 9.0% at 9M20.

The strong earnings were primarily due to higher contributions from stockbroking and investment management companies as well as a share of the profits from the joint venture with Rakuten Trade Sdn Bhd.

Its stockbroking division achieved a PBT of RM68.8million for 9M21 compared to RM52.7million from the same period last year, mainly due to higher net interest rates, improved net trading and investment income as well as lower credit loss expenses. Net investment income from stock trading increased to RM56.0 million, an increase of 40.2% compared to the corresponding period. The division continued to grow its market share, especially in the retail segment, from 21.9% to 23.5%, strengthening its position as one of the largest retail brokers in the market. During the same period, Rakuten Trade achieved another milestone, with the fast-growing online trading platform exceeding 200,000 registered accounts.

Its Investment and Wealth Management division recorded record highs of PBT and rose more than three times to RM20.6 million in the nine-month period compared to RM7.6 million in the same period last year. The significant increase was attributed to higher performance fees and revenue from administration fees generated based on increased assets under administration (AUA) and sales agency strength. The AUA stood at RM16.3 billion, an increase of 18.4% from the same period last year.

In the quarter under review, net revenue and profit before tax were affected by the weakened trading volumes on Bursa Malaysia, resulting in lower net brokerage and trading and investment income. For the third quarter of 2021, net revenue amounted to RM202.6 million, while profit before tax was RM26.3 million.

“With the gradual reopening of all economic sectors and the lifting of restrictions, supported by the progress of the COVID-19 vaccination campaign, the proliferation of stimulus measures and the release of accumulated demand, we remain cautiously optimistic about the country’s economic prospects into the new year. , ”Commented Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad.

“That said, we are witnessing a slowdown in trading activity not only on Bursa Malaysia but also on some of the other major exchanges around the world. This is likely to have some impact on our next quarter’s revenue, but in All in all, by taking advantage of the strength of our diversified revenue streams, we are on track to end the year on a basis comparable to last year’s performance, ”added Datuk Chay.

“With our business model centered on digitization and the continued exercise of prudence throughout our operations, we are in a good position to continue to grow the business and deliver long-term shareholder value,” said Datuk Chay.

For more information about the Kenanga Group, please visit www.kenanga.com.my.

About Kenanga Investment Bank Berhad (15678-H)

Kenanga Investment Bank Berhad (the “Group”) has been established for more than 45 years and is a financial group in Malaysia with extensive experience in stockbroking, investment banking, treasury, Islamic banking, listed derivatives, investment management, asset management, structured lending and trade finance.

The Group has reaped a wealth of awards and accolades that reflect its strong market position. It was awarded under the categories Best Overall Equity Participating Organization by Bursa Malaysia, Best Overall Derivative Trading Participant, Best Structured Equity Issuer, Best Retail Equity Participating Organization, Best Institutional Equity Participating Organization Investment Bank; together with best trading participant and best institutional equity participating organization and for equities and financial derivatives for 18 consecutive years. The group was also awarded the title as the category of best institutional trading in derivatives by Bursa Malaysia.

The group continues to be a regular and recurring recipient of prestigious industry awards, such as Lipper, Fundsupermart and Morningstar awards. For its continued efforts to reach the local community and employee volunteering, the group was awarded the award for the year’s coveted company for environmental awareness and sustainability at the Sustainability & CSR Malaysia Awards 2020.

Today, Kenanga Investment Bank Berhad is an award-winning leading independent investment bank in the country with a continuous commitment to drive collaboration, innovation and digitalization in the market.

#Yannga

Kenanga Investment Bank announces 37.4% increase in net profit for the first nine months ended September 30, 2021

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