9M2021 vs 9M2020
Profit at RM86.5 million, up by 37.4%
Income at RM586.3 million, up by 1.4%
Expense at RM490.7 million, down by 1.7%
on Equity at 11.3%, up from 9%
Per Share at 11.86 sen, up by 32.1%
Equity Trading Investment Income at RM56.0 million, up by 40.2%
Share of Retail Stockbroking at 23.5%, up from 21.9%
Under Administration (AUA) at 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 the
"Group") today announced a net profit of RM86.5 million for the nine months
period ended September 30, 2021 ("9M21"), a 37.4% jump from RM63 million for
the same period last year ("9M20").
Year-to-date (YTD) net income
stood at RM586.3 million, up by 1.4% from the previous corresponding period,
while operating expense reduced marginally to RM490.7 million. Annualised Return on Equity (ROE) based
on 9M21 is at 11.3% compared to 9.0% at 9M20.
The strong earnings were mainly
due to higher contribution from stockbroking and investment management
businesses, as well as, share of profits from the joint venture with Rakuten
Trade Sdn Bhd.
Its Stockbroking division achieved
a PBT of RM68.8million for 9M21 vis a vis RM52.7million from the same period last
year, mainly due to higher net interest, improved net trading and investment
income, as well as, lower credit loss expenses. Net equity trading investment
income increased to RM56.0 million, up 40.2% from the corresponding period. The
division continued to grow its market share, particularly in the retail
segment, from 21.9%, to 23.5%, reinforcing its position as one of the largest
retail brokers in the marketplace. During the same period, Rakuten Trade,
achieved yet another milestone, with the fast-growing online trading platform
surpassing 200,000 registered accounts.
Its Investment and Wealth Management
division registered record high PBT, surging over three folds 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 fee and
management fee income generated on the back of increased assets under administration
(AUA) and sales agency force. AUA stood at RM16.3 billion, up 18.4% from the
same period last year.
For the quarter under review,
net revenue and profit before tax were impacted by the weakening trading
volumes on Bursa Malaysia, which resulted in lower net brokerage and trading
and investment income. For Q3 2021, net revenue stood at RM202.6 million, while
profit before tax stood at RM26.3 million.
"With the gradual reopening
of all economic sectors and lifting of restrictions, underpinned by the
progress of COVID-19 vaccination campaign, deployment of stimulus measures and
the unleashed pent up demand, we remain cautiously optimistic of the country's
economic outlook into the new year," commented Datuk Chay Wai
Leong, Group Managing Director, Kenanga Investment Bank Berhad.
"Having said that, we are
witnessing a deceleration in trading activities not just on Bursa Malaysia, but
also on some of the other major bourses around the world. This will likely have
some impact on our following quarter's revenue, but on the whole, benefiting
from the strength of our diversified revenue streams, we are on track to
conclude the year on a footing comparable to the performance last year," added
"With our business model
centred on digitalisation, and the continued practice of prudence throughout
our operations, we are in a good position to continue growing the business and
deliver long-term shareholder value," said Datuk Chay.
more information on Kenanga Group, please visit www.kenanga.com.my.