Against the backdrop of the global COVID-19 pandemic, the Investment Banking (“IB”) division as a whole recorded PBT of RM34.0 million over RM24.7 million in 2019, which was attributable to strong performance from the Treasury business, higher net income and reversal of provision for credit loss, which partially offset lower investment banking fee income.

Investment and Wealth Management registered a PBT of RM13.6 million, relative to RM5.2 million from the year before, mainly due to higher management and performance fee earned. Despite a turbulent year, assets under administration ("AUA") increased to RM13.83 billion from RM13.49 billion in 2019. The financial performance for Kenanga Investors Group ("KIG"), which comprises Kenanga Investors Berhad ("KIB"), Kenanga Islamic Investors Berhad ("KIIB"), and Libra Invest Berhad ("LIB"), in 2020 exceeded expectations, against the backdrop of volatile markets and a weaker economy.

Global listed derivatives saw a significant increase in volume in 2020 as volatility fuelled by the COVID-19 pandemic and global political uncertainty drove investors and traders to hedge their portfolios or seek new trading opportunities, respectively. However, growth in the commission income of our listed derivatives business was impaired by a decline in interest income amid the falling interest rate environment. For FYE2020, Kenanga Futures Sdn Bhd (“KFSB”) recorded a marginally lower Loss Before Tax (“LBT”) of RM2.8 million from LBT of RM2.9 million in FYE2019.

The Structured Lending and Trade Financing division doubled its PBT to RM1.86 million in 2020, vis-à-vis a PBT of RM0.83 million in FYE2019. The division increased its market share in equity financing as public listed companies sought to raise funds in response to the economic slowdown in the wake of the pandemic.