KUALA LUMPUR – Bursa Malaysia Berhad (Bursa Malaysia or the Exchange) recorded a Profit After Tax and Minority Interest (PATAMI) of RM272.9 million for the nine-month financial period ended 30 September 2020 (9M2020), a 94.5% increase from RM140.3 million reported in the previous corresponding period ended 30 September 2019 (9M2019).
The increase in PATAMI is due to higher operating revenue, which increased by 55.0% to RM554.0 million from the previous corresponding period.Meanwhile, total operating expenses in 9M2020 increased by 11.1% to RM200.4 million from RM180.3 million in 9M2019 due to higher staff costs, professional fees and information technology maintenance cost.
“Against the backdrop of unprecedented circumstances, the Exchange delivered an exceptional 9M2020 financial performance, recording the highest ever nine-month PATAMI since listing in 2005,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.
“The on-going developments with regards to COVID-19, low-interest-rate environment, the Malaysian government’s stimulus packages and the gradual re-opening of the economy continue to support investor participation across segments led by domestic institutions and retail.”
“The continuous operations of our markets have been critical in making available the necessary liquidity and risk management tools for investors to respond in a higher volatility environment and invest in new opportunities.”
Investor participation in the Securities Market continued to increase, with average daily trading value (ADV) growing by 101.8% to RM4.0 billion in 9M2020 compared to RM2.0 billion in 9M2019.
As a result, Securities trading revenue increased by 101.1% to RM349.2million in 9M2020 from RM173.6 million in 9M2019.
The additional number of trading days and the higher effective clearing fee in 9M2020 also contributed to the increase in trading revenue. Trading velocity increased by 34 percentage points to 62% compared to 9M2019.
Non-trading revenue increased by 7.0% to RM110.9 million from RM103.6 million in the previous corresponding period. This was contributed by higher market data revenue which increased by 20.4% to RM26.7 million in 9M2020 from RM22.2 million in 9M2019, underpinned by the rise in the number of new subscribers.
Depository services revenue also increased by 9.3% to RM34.4 million in 9M2020 from RM31.5 million in 9M2019 due to higher Record ofDepositors fees and account opening fees earned.
The Exchange will 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 RM69.2 million in 9M2020 from RM51.7 million in 9M2019, mainly due to higher number of contracts traded for Crude Palm Oil Futures (FCPO) and FTSE Bursa Malaysia KLCI Futures (FKLI).
Total average daily contracts (ADC) for the Derivatives Market increased by 41.3% to 74,408 contracts in 9M2020 compared to 52,644 contracts in 9M2019. As for the Islamic Capital Market, trading revenue for Bursa Suq Al-Sila’ (BSAS) in 9M2020 decreased by 13.5% to RM9.6 million from RM11.1 million in 9M2019 despite the growth inADV by 3.0% to RM32.5 billion in 9M2020.
This was mainly due to higher trades under the volume-based pricing scheme that attracts a lower fee. Trading on BSAS is expected to sustain for the rest of the year supported by the increase in foreign participation.