KUALA LUMPUR: Kenanga Investment Bank Bhd
is on track to close the year with higher operating profit as compared to the previous year despite the mixed market sentiment, according to group managing director Datuk Chay Wai Leong.
“Despite recent volatility, we remain optimistic about the Malaysian equities market, given the FBM KLCI's double-digit growth this year. The economic outlook for the rest of 2024 remains positive, bolstered by strong domestic demand, stable employment, increased tourist arrivals, and ongoing infrastructure projects.
“While external challenges such as a global economic slowdown and geopolitical tensions persist, Malaysia’s inherent resilience offers a solid foundation for growth,” he said in a statement.
In the third quarter ended Sept 30, Kenanga’s net profit tumbled 38.1% to RM14.6mil, or earnings per share of 2.01 sen from RM23.6mil, or 3.26 sen in the year-ago quarter.
Revenue rose to RM229.9mil against RM219.7mil a year ago mainly due to higher brokerage fee income, partially offset by higher overheads and credit loss expenses.
In the first nine months to Sept 30 (9M24), its net profit fell to RM46.8mil compared with RM50.6mil a year prior.
Revenue for the period rose to RM677.3mil, a 13.3% uptick compared to last year while operating profit increased by 10.5% to RM57.7mil.
Kenanga said this was driven by higher brokerage and trading income on the back of increased trading volumes on Bursa Malaysia.
The group’s stockbroking division recorded a 28.2% increase in revenue to RM284.2mil in 9M24, compared to RM221.7mil achieved last year.
For the period under review, Kenanga’s investment banking division reported a revenue of RM184.8mil, up 8.3% from RM170.6mil last year, mainly driven by higher investment banking fee income and trading and investment income.
For its asset and wealth management business, the division recorded lower revenue and pre-tax profit of RM187.4mil and RM19.7mil respectively, mainly driven by lower income from alternative investments and expansion cost for wider business reach, despite recording higher retail and institutional management fee contributions.
Its assets under administration saw steady growth, rising 10.7% year-on-year to reach RM23.8 billion.
