KUALA LUMPUR, 31 May 2021 – Malaysia’s leading independent investment bank, Kenanga Investment Bank Berhad (“Kenanga” or the “Group”) today announced its first quarter financial results for the period ended 31 March 2021 (“1Q21”). The Group recorded profit after tax and non-controlling interest (“PATNCI” or “net profit”) of RM34.2 million for the quarter, an increase of RM41.1 million relative to RM6.9 million net loss from 1Q20. The previous net loss was mainly due to provision of credit loss expenses which has progressively been reversed over the quarters. Consolidated revenue for the quarter under review increased by 51.3% year-on- year (“YoY”) to RM250.1 million in 1Q21. Annualised Return on Equity (ROE) is at 13.8%, compared to full year 2020 of 10.7%.
The strong performance was mainly attributed to higher contributions from the stock broking segment and the investment & wealth management segment, as well as, higher share of profits from the joint venture with Rakuten Trade.
Kenanga’s stock broking division continued to benefit from the high trading activities on Bursa Malaysia. In 1Q21, the local bourse saw its average daily trading value (“ADV”) reach RM10.0 billion, which was higher than the ADV of RM8.6 billion recorded in the whole of 2020. As a result, 1Q21 profit before tax (“PBT”) from the segment jumped to RM34.3 million, as compared to a loss before tax (“LBT”) of RM13.6 million in the same period last year.
For more information on Kenanga, please visit www.kenanga.com.my
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