Kenanga Investment Bank Announces Second Quarter 2022 Revenue of RM176.9 Million and Net Profit of RM18.6 Million
Kuala Lumpur, August 30, 2022: Kenanga Investment Bank Berhad (“Kenanga” Where “TheBand“) today announced its second quarter financial results for the period ended June 30, 2022 (“2Q22“).
The Group recorded revenue and profit before tax (“PBT“) of RM176.9m and RM20.3m respectively for 2Q22, compared to the same period last year when revenue was RM212.6m and PBT was 37.6 Net profit was RM18.6m compared to RM30.0.7m from the same period last year Results were underpinned by lower revenue contribution brokerage fees as well as trading and investment income, partially offset by higher management fee income.
In line with lower trading volumes and volatility in trading activity on Bursa Malaysia, Kenanga’s brokerage division reported lower revenue of RM72.6 million and PBT of RM2.7 million, against revenue of RM127.4 million and PBT of RM20.0 million. at the same time last year. Nevertheless, the division continues to grow its market share in the retail segment, from 23.48% in the same period last year to 28.04% in 2Q22, reinforcing its role as one of the largest and fastest growing retail stockbrokers in the market.
Its investment banking business recorded slightly lower revenue of RM42.6 million and PBT of RM3.2 million compared to revenue and PBT of RM45.8 million and 5.5 million of RM respectively in the prior corresponding period, due to lower interest income and trading and investment income.
The group’s investment and wealth management business delivered an outstanding performance with a 72.7% increase in revenue to RM58.1m and a 127.2% increase in PBT to 14.1m from RM. The significant increase was attributed to a higher contribution from management and performance fees from unit trust funds and alternative products. Its assets under administration also increased by 31.5% to RM20 billion in the quarter under review, from RM15.2 billion in the same period last year.
Similarly, the group’s Futures division also recorded higher revenue as well as net profit to RM5.0 million and RM4.5 million from RM4.2 million and RM3.9 million. RM respectively compared to the prior corresponding period due to increased trading activity. and higher interest income generated.
Its money lending and financing division recorded revenue of RM2.2 million, relatively similar to the previous corresponding quarter of RM2.2 million. However, it reported a higher PBT of RM257,000 compared to RM209,000 in the individual period ended June 30, 2021 due to lower personnel costs.
“While it is encouraging to see that the Malaysian economy is set to grow further, supported by the continued recovery of the service sector and private consumption, growth will be subject to several risks such as deteriorating channel conditions. global supply chain amid the Russia-Ukraine crisis, China’s zero-COVID policy as well as global financial uncertainty due to monetary policy tightening by the US Federal Reserve and other central banks,” said Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad.
“Despite all of this, we remain resilient to macroeconomic headwinds and financial market volatility, and we are optimistic that the capital market will improve in the second half as we continue to focus on fueling our course. transformation with digitalization. This will allow us to deliver long-term shareholder value and position ourselves with agility as we respond to the increasingly changing conditions of the industry in which we operate,” concluded Datuk Chay.
Kenanga recently signed a memorandum of understanding with Ant Group to leverage mPaas, a mobile development platform from Ant Group’s digital technology unit, to launch Malaysia’s first Wealth SuperApp. The SuperApp aims to revolutionize the way Malaysians approach wealth generation and management by unifying a wide range of financial offerings under one roof, allowing wealth creation to be more accessible.
The development of this SuperApp expands the portfolio of digital products that Kenanga has successfully deployed, from Rakuten Trade, Malaysia’s fastest growing online stock trading platform, to Kenanga Digital Investing, a robo-advisor that has amassed over RM250 million in assets under management in six months.
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