Kenanga Investment Bank group managing director Datuk Chay Wai Leong says vigilant risk management and prudent credit management have been key to strengthening Kenanga’s resilience.
MALAYSIA’S leading independent investment bank, Kenanga Investment Bank Bhd
has announced stronger earnings for the period ended June 30, 2024 (1H24).
Revenue for 1H24 rose by 18.3% to RM447.3mil from RM378.1mil, while profit before tax (PBT) increased by 13.1% to RM40.5mil from RM35.8mil in the preceding year.
This improved performance is primarily due to a 60.4% increase in operating profit and share of profit from associates. Net profit stood at RM32.2mil, reflecting an 18.8% growth from 1H23.
In line with the improved trading volumes on the local bourse, the group’s stockbroking division PBT surged nearly three-fold to RM13.6mil in 1H24, from RM4.7mil in the corresponding period.
Its revenue also reported robust growth, rising 38.4% from RM142.4mil to RM197.1mil in 1H24, driven by higher trading and investment income, as well as brokerage fee income.
Additionally, the division maintained strong retail market share of 24.8%, demonstrating its continued presence and competitiveness in the market.
For the period 1H24, the group’s asset and wealth management division reported higher revenue of RM118.5mil, while PBT stood at RM11.6mil, impacted by lower management and performance fees income, as well as higher credit loss expense.
Its Asset Under Administration (AUA) demonstrated a steady growth, increasing by 12.9% to RM23.6bil against the same period last year.
For the group’s listed derivatives business, the segment reported a 10.8% increase in revenue to RM13.3mil for 1H24 compared to RM12.0mil in the corresponding period.
The growth is attributed to higher commission and interest income generated as a result of higher trading activities in the derivatives space.
Mirroring this, its PBT jumped 18.8% year-on-year to RM3.8mil.
The group’s investment banking division registered higher revenue of RM121.2mil, reflecting an 11.8% increase from the RM108.4mil reported in 1H23, attributed to higher investment banking fees income, as well as trading and investment income.
Lower interest income and credit loss expenses resulted in a loss before tax of RM3mil for the division.
Kenanga group managing director Datuk Chay Wai Leong said, “Barring any unforeseen circumstances, we anticipate surpassing last year’s performance, driven by improving economic conditions and increased volumes on Bursa Malaysia.
“Amidst recent market volatility and geopolitical tensions, vigilant risk management and prudent credit management have been key to strengthening our resilience.
“With over five decades of capital market expertise and experience behind us, we are well-positioned to navigate challenges, capitalise on emerging opportunities, and sustain our growth momentum to continue delivering long-term shareholder value,” he concluded.
Earlier last week, Kenanga launched KDi GO, Malaysia’s newest wealth management app that integrates a spectrum of financial services into a seamless ecosystem.
This launch marks another milestone in Kenanga’s commitment to providing innovative solutions that meet the evolving needs of its clients. KDi GO is available for download on the Apple App Store and Google Play Store.
Key highlights 1H24 VS 1H23
> Net profit at RM32.2mil, up by 18.8%
> Net income at RM349.7mil, up by 17.9%
> Operating profit at RM36.9mil, up by 60.4%
> Operating expense at RM312.8mil, up by 14.3%
> Return on equity at 6.04, up by 14.4%
> Earnings per share at 4.44 sen, up by 19.0%
> Overall stockbroking market share at 9.8%
> Retail stockbroking segment market share at 24.8%
> Asset Under Administration (AUA) at RM23.6bil, up by 12.9%.
