Bursa Q3 earnings up 159% to RM121.9mil


Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift (pic) said: “Against the backdrop of unprecedented circumstances, the exchange delivered an exceptional nine-month financial performance, recording the highest ever nine-month profit after tax and minority interest since listing in 2005.”

KUALA LUMPUR: Bursa Malaysia’s net profit increased by 159% to RM121.93mil in the third quarter ended Sept 30, propelled by strong investor participation across segments led by domestic institutions and retail.

The stock exchange operator said the net profit was RM47.10mil a year ago. Its revenue increased by 93.8% to RM237.74mil from RM121.67mil. Earnings per share were 15.10 sen compared with 5.8 sen previously.

In the nine months, its net profit increased by 94.5% to RM272.89mil from RM140.29mil in the previous corresponding period due to higher operating revenue. Its revenue increased by 52.2% to RM568.27mil from RM373.16mil.

Total operating expenses in the nine-month period increased by 11.1% to RM200.4mil from RM180.3mil in the same period a year ago due to higher staff costs, professional fees and information technology maintenance cost, it said.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said: “Against the backdrop of unprecedented circumstances, the exchange delivered an exceptional nine-month financial performance, recording the highest ever nine-month profit after tax and minority interest since listing in 2005.”

He said the ongoing developments with regards to Covid-19, low interest-rate environment, the Malaysian government’s stimulus packages and the gradual re-opening of the economy continued to support investor participation across segments led by domestic institution and retail sectors.

Umar said investor participation in the securities market continued to increase, with average daily trading value (ADV) growing by 101.8% to RM4bil in the nine-month period compared with RM2bil a year ago.

As a result, securities trading revenue increased by 101.1% to RM349.2mil in the nine-month period from RM173.6mil in the same period a year ago.

The additional number of trading days and the higher effective clearing fee in the nine-month period also contributed to the increase in trading revenue.

Trading velocity increased by 34 percentage points to 62% compared to a year ago. Non-trading revenue increased by 7% to RM110.9mil from RM103.6mil in the previous corresponding period.

This was contributed by higher market data revenue which increased by 20.4% to RM26.7mil in the nine-month period from RM22.2mil a year ago, underpinned by the rise in the number of new subscribers.

Depository services revenue also increased by 9.3% to RM34.4mil in the nine-month period from RM31.5mil a year ago, which was due to higher record of depositors fees and account opening fees earned.

He said the exchange would continue to build on its data-related offerings to improve non-trading revenue and ensure the long-term resilience of earnings in all market conditions.

Derivatives market trading revenue increased by 33.8% to RM69.2mil in the nine-month period from RM51.7mil a year ago, mainly due to higher number of contracts traded for crude palm oil futures and FTSE Bursa Malaysia KLCI Futures.

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