KUALA LUMPUR, MALAYSIA\u00a0–\u00a0Media
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Kenanga’s stock broking division continued to benefit
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For more information on Kenanga,
\nOutReach<\/a>\u00a0–\u00a031 May 2021 –\u00a0Malaysia’s leading independent investment bank, Kenanga
\nInvestment Bank Berhad<\/a> (“Kenanga” or the “Group”) today announced its first
\nquarter financial results for the period ended 31 March 2021 (“1Q21”). The Group
\nrecorded profit after tax and non-controlling interest (“PATNCI” or “net
\nprofit”) of RM34.2 million for the quarter, an increase of RM41.1 million relative
\nto RM6.9 million net loss from 1Q20. The previous net loss was mainly due to
\nprovision of credit loss expenses which has progressively been reversed over
\nthe quarters.\u00a0 <\/p>\n![](\"https:\/\/release.media-outreach.com\/release.php\/Images\/Thumb\/500x0\/152894\/Datuk-Chay-Wai-Leong.jpg#image-152894\")
<\/p>\nDatuk Chay Wai Leong, Group Managing Director of Kenanga Investment Bank Berhad<\/span><\/h5>\n
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\nrevenue for the quarter under review increased by 51.3% year-on-year (“YoY”) to
\nRM250.1 million in 1Q21. Annualised Return on Equity (ROE) is at 13.8%, compared
\nto full year 2020 of 10.7%. <\/p>\n
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\nstrong performance was mainly attributed to higher contributions from the stock
\nbroking segment and the investment & wealth management segment, as well as,
\nhigher share of profits from the joint venture with Rakuten Trade. <\/p>\n
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\nfrom the high trading activities on Bursa Malaysia. In 1Q21, the local bourse saw
\nits average daily trading value (“ADV”) reach RM10.0 billion, which was higher
\nthan the ADV of RM8.6 billion recorded in the whole of 2020. As a result, 1Q21 profit
\nbefore tax (“PBT”) from the segment jumped to RM34.3 million, as compared to a loss
\nbefore tax (“LBT”) of RM13.6 million in the same period last year. <\/p>\n
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\nfrom the investment & wealth management division surged almost fifteen-fold
\nto RM7.6 million in 1Q21 from RM0.5 million in 1Q20. The significant increase
\nwas attributed to the higher management fees income generated. <\/p>\n
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\n1Q21, the monthly average of new accounts opened was 10,457 for the Group’s
\njoint-venture, Rakuten Trade, higher against the monthly average of 9,893 new
\naccounts registered in the bumper year of 2020.<\/p>\n
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\nManaging Director of Kenanga Investment Bank Berhad, Datuk Chay Wai Leong <\/b>commented, “Our
\ndigital strategy has proven invaluable in these trying times. Technology
\ninvestments made in earlier years such as the remisier portal have allowed us
\nto implement remote working before it became the norm. Today, we continue to
\nhandle high volume of account registrations and manage the servicing of our
\nclients seamlessly in the face of the various Movement Restriction Orders
\nimplemented nationwide.” <\/p>\n
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\nthe roll-out of the national vaccination programme gaining momentum, we are
\ncautiously optimistic about the health of the overall economy for the second
\nhalf of the year. Bolstered by our digital initiatives that are in the
\npipeline, we are on track to boost our ecosystem, sustain growth and deliver against
\ntargets for 2021,” Datuk Chay added.<\/p>\n
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\nmonth the Group’s fully owned subsidiary, Kenanga Investors Berhad, launched Kenanga
\nWaqf Al-Ihsan Fund, further expanding on its Shariah-compliant investments.
\nWaqf is an Islamic philanthropic-based vehicle that focuses on areas such as education,
\nhealthcare, economic empowerment, and environmental preservation. The fund will
\nserve as the launchpad for other similar ESG-linked products as part of Kenanga
\nInvestors’ move towards sustainable and socially responsible investing. <\/p>\n
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\nplease visit www.kenanga.com.my<\/a><\/p>\n
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