KUALA LUMPUR – Bursa Malaysia Berhad recorded a Profit After Tax, Zakat and Minority Interest (PATZAMI) of RM377.7 million for the financial year ended 31 December 2020 (FY2020), a 103.2% increase from RM185.9 million reported in the previous financial year ended 31 December 2019 (FY2019).
The increase in PATZAMI was due to the improved performance in the Securities and Derivatives Markets, which recorded higher operating revenue of RM778.8 million from RM480.1 million in FY2019, an increase of 62.2%. This is Bursa Malaysia’s highest full-year financial results since its listing in 2005.
Meanwhile, total operating expenses in FY2020 increased by 18.5% to RM291.8 million from RM246.2 million in FY2019, mainly due to higher staff costs, information technology maintenance costs and professional fees.
The Board of Directors approved and declared a final dividend of 26.0 sen per share and a special dividend of 8.0 sen per share for FY2020, amounting to approximately RM210.3 million and RM64.7 million, respectively. This brings the total dividend payout for FY2020 to 51.0 sen per share, 145% higher than the total dividend of 20.8 sen per share paid in respect of the previous FY2019.
Furthermore, the ongoing developments surrounding the pandemic continued to drive investment flows, seeing higher market activity in the Securities and Derivatives Markets, as well as increased demand in services. Market data revenue increased by 24.8% to RM48.1 million in FY2020 from RM38.6 million in FY2019 contributed by an increase in the number of new subscribers.
Moreover, depository services revenue increased by 17.4% to RM49.2 million in FY2020 from RM41.9 million in FY2019, due to higher Record of Depositors fees, transfer fees, and account opening fees earned. Listing and issuer services revenue increased by 5.6% to RM57.0 million in FY2020 from RM54.0 million in FY2019. This was mainly due to additional listing fees and processing fees earned from the higher number of corporate exercises in FY2020.
For FY2020, the Securities Market registered a trading revenue of RM498.9 million compared to RM232.8 million in FY2019, which increased by 114.3% due to higher ADV for Securities Market’s on-market trades. The broader market is supported by local investors, with higher retail and institutional participation during the year.
Besides that, Derivatives Market trading revenue increased by 26.0% to RM91.1 million in FY2020 from RM72.3 million in FY2019, mainly due to the higher number of contracts traded for Crude Palm Oil Futures (FCPO) and FTSE Bursa Malaysia KLCI Futures (FKLI). Average Daily Contracts (ADC) for the Derivatives Market saw an increase of 32.8%, with 73,523 contracts in FY2020 compared to 55,372 contracts in FY2019.
However, the Derivatives trading revenue, Conference fees and exhibition-related income decreased by 95.6% to RM0.2 million in FY2020 from RM5.0 million in FY2019 due to the cancellation of the physical flagship Palm and Lauric Oils Price Outlook Conference & Exhibition 2020 which was held virtually instead.
The Islamic Capital Market, Bursa Suq Al-Sila’ (BSAS) trading revenue decreased by 6.5% to RM13.1 million in FY2020 from RM14.0 million in FY2019 despite the increase in BSAS ADV by 7.8% to RM32.9 billion in FY2020. This was due to a higher proportion of volume-based pricing trades in FY2020 where lower fees were applicable. Nevertheless, the Exchange expects the BSAS ADV growth momentum to sustain.