ANNUAL REPORT 2023

OUR DIGITAL JOURNEY

  • 2016

    Rakuten Joint Venture

    Kenanga entered into a joint venture with Japanese internet giant Rakuten Securities, Inc.

    2017

    Launch of Rakuten Trade

    Kenanga and Rakuten Securities, Inc. jointly launched Rakuten Trade, Malaysia’s first fully digital equity broker.

     

    Back Office Digitalisation

    Kenanga completed back office digitalisation to enhance efficiencies.

  • 2019

     

    Launch of Remisier Portal

    Kenanga launched a new portal to enable remisiers to work remotely.

    2020

    E-Wallet Launch with Merchantrade Asia Sdn Bhd (“Merchantrade”)

    Kenanga launched Kenanga Money, Malaysia’s first stockbroker e-wallet, with Merchantrade and later acquired a 4.99% stake in the company.

    Partnership with Bay Group Holdings Sdn Bhd (“CapBay”)

    Kenanga entered into partnership with CapBay to digitalise first-in-Malaysia factoring solution unifying both, private and public sector’s receivables under one (1) platform.

  • 2021

    A Stake in Tokenize Technology (M) Sdn Bhd

    Kenanga received approval from the Securities Commission Malaysia to acquire 19% stake in Digital Asset Exchange Platform, Tokenize Xchange.

    2022

    Launch of a Robo- Advisory Platform

    Kenanga launched a fully AI-driven robo-advisory platform, Kenanga Digital Investing.

    2023

    Signed Memorandum of Understanding with Ant Group

    Kenanga entered into a collaboration with Ant Group to develop Malaysia’s first Wealth SuperApp, geared to revolutionise wealth generation and management.

  • Slide 01
    • ...
Download PDF

MESSAGE FROM CHAIRMAN

DEAR SHAREHOLDERS,

This year marks a significant milestone as we proudly commemorate fifty (50) years of Kenanga Investment Bank Berhad (“Kenanga” or “KIBB” or “the Company”), a journey defined by resilience and enduring legacy.

TAN SRI DATO’ SERI SYED ANWAR JAMALULLAIL

Chairman

Download PDF

GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION & ANALYSIS

DEAR SHAREHOLDERS,

The year 2023 proved to be another challenging period for the world economy as headwinds from the previous year lingered, accompanied by escalating geopolitical tensions, persistently high inflation, sluggish growth, and turbulent financial markets.

Revenue

RM 821.1 million

PBT

RM 88.1 million

Dividend

7.00 sen per share

DATUK CHAY WAI LEONG

Group Managing Director

Download PDF

OUR PERFORMANCE REVIEW

  • Stockbroking

    Stockbroking

    In 2023, the Stockbroking division strategically enhanced its operational efficiencies, building upon the progress made in 2022 to navigate challenging market conditions effectively and achieve stability.

    The division’s concerted efforts, including the recovery of credit loss expense in the prior year, yielded significant results, with PBT surging from RM2.5 million in the previous year to RM16.1 million. Despite market challenges, the division upheld its market share, rising from 10.2% in the previous year to 10.5% as at FY2023.

  • Investment Banking

    Investment Banking

    Amidst the persistently challenging macro environment in 2023, the Investment Banking division registered a PBT of RM5.7 million compared to RM15.8 million the previous year.

    In the equity capital market, the division successfully listed Synergy House Berhad in the second (2nd) quarter of FY2023 (“2Q2023”) and SkyWorld Development Berhad in the third (3rd) quarter of FY2023 (“3Q2023”) on the ACE Market and Main Market of Bursa Malaysia Securities Berhad, respectively. Notably, the Initial Public Offering (“IPO”) for SkyWorld Development Berhad, which the division singlehandedly raised RM320.0 million for, marked the third (3rd) largest IPO fundraising in 2023.

  • Asset and Wealth Management

    Asset and Wealth Management

    The Asset and Wealth Management division of the Group comprises Kenanga Investors Berhad (“KIB”), Kenanga Islamic Investors Berhad (“KIIB”), and Eq8 Capital Sdn Bhd (Formerly known as i-VCAP Management Sdn Bhd). Together, these entities form Kenanga Investors Group (“KIG”). Complementing these entities are the KIBB Digital Investment Management and Wealth Management units, extending a suite of offerings that encompasses conventional collective investment schemes, robo-advisory services, portfolio management, and a spectrum of alternative investments.

  • Listed Derivatives

    Listed Derivatives

    In the year under review, our Listed Derivatives Business arm, Kenanga Futures Sdn Bhd (“KFSB”) recorded remarkable achievements across the business, including a new record high in revenue, securing the number one market position in terms of execution market share on Bursa Malaysia Derivatives Berhad (“BMD”), and achieving unprecedented profitability numbers that were the highest in more than a decade. The year 2023 also marked the completion of KFSB’s three (3)-year ASCENT 2021 – 2023 Blueprint which had been the driving force behind its achievements this year.

  • Stockbroking

    In 2023, the Stockbroking division strategically enhanced its operational efficiencies, building upon the progress made in 2022 to navigate challenging market conditions effectively and achieve stability.

    The division’s concerted efforts, including the recovery of credit loss expense in the prior year, yielded significant results, with PBT surging from RM2.5 million in the previous year to RM16.1 million. Despite market challenges, the division upheld its market share, rising from 10.2% in the previous year to 10.5% as at FY2023.

  • Investment Banking

    Amidst the persistently challenging macro environment in 2023, the Investment Banking division registered a PBT of RM5.7 million compared to RM15.8 million the previous year.

    In the equity capital market, the division successfully listed Synergy House Berhad in the second (2nd) quarter of FY2023 (“2Q2023”) and SkyWorld Development Berhad in the third (3rd) quarter of FY2023 (“3Q2023”) on the ACE Market and Main Market of Bursa Malaysia Securities Berhad, respectively. Notably, the Initial Public Offering (“IPO”) for SkyWorld Development Berhad, which the division singlehandedly raised RM320.0 million for, marked the third (3rd) largest IPO fundraising in 2023.

  • Asset and Wealth Management

    The Asset and Wealth Management division of the Group comprises Kenanga Investors Berhad (“KIB”), Kenanga Islamic Investors Berhad (“KIIB”), and Eq8 Capital Sdn Bhd (Formerly known as i-VCAP Management Sdn Bhd). Together, these entities form Kenanga Investors Group (“KIG”). Complementing these entities are the KIBB Digital Investment Management and Wealth Management units, extending a suite of offerings that encompasses conventional collective investment schemes, robo-advisory services, portfolio management, and a spectrum of alternative investments.

  • Listed Derivatives

    In the year under review, our Listed Derivatives Business arm, Kenanga Futures Sdn Bhd (“KFSB”) recorded remarkable achievements across the business, including a new record high in revenue, securing the number one market position in terms of execution market share on Bursa Malaysia Derivatives Berhad (“BMD”), and achieving unprecedented profitability numbers that were the highest in more than a decade. The year 2023 also marked the completion of KFSB’s three (3)-year ASCENT 2021 – 2023 Blueprint which had been the driving force behind its achievements this year.

Download PDF

FIVE (5)-YEAR GROUP FINANCIAL HIGHLIGHTS

Operating Revenue

(RM’000)

2023

821,056

2022

723,086

2021

891,491

2020

973,762

2019

651,270

Shareholders’ Funds

(RM’000)

2023

1,070,975

2022

1,017,280

2021

1,050,329

2020

999,838

2019

904,289

Profit Before Taxation

(RM’000)

2023

88,110

2022

74,150

2021

148,236

2020

134,715

2019

42,951

Basic Earnings per Share

(sen)

2023

10.04

2022

7.50

2021

16.29

2020

14.56

2019

3.78

Download PDF

VALUE CREATION MODEL

CAPITALS

KEY INPUTS

STRATEGIES AND
FOCUS AREAS

KEY OUTCOMES

CAPITALS

Intellectual Capital

Intellectual Capital refers to intangible organisational assets rooted in knowledge, which may encompass intellectual property like software or licences, as well as proprietary knowledge, systems, or procedures.

Financial Capital

Financial Capital refers to the cumulative resources of funds at the disposal of the Group.

Manufactured Capital

Manufactured Capital encompasses the Group’s infrastructure, comprising physical branches and digital technology, among other things, which are instrumental in delivering services to customers.

Human Capital

Human Capital encompasses the collective skills and expertise held by all Kenanga Group employees. This combined capability empowers the Group to implement its strategies, and create value for its stakeholders.

Natural Capital

Natural Capital involves the stewardship of natural resource utilisation and its consequential effects on the environment.

Social and Relationship Capital

Social and Relationship Capital encompasses the connections fostered among communities and stakeholders, as well as enhancing financial literacy and inclusion through education.

KEY INPUTS

Intellectual Capital

Over

50 years

of experience

Drive thought leadership through industry committees

First

investment bank in Malaysia to join the UNGC

Financial Capital

Shareholders’ Equity:

RM 1.07 billion

Deposit from Customers:

RM 4.1 billion

Strong capital ratio of 29.4% and liquidity coverage ratio of 280.5%

A+ credit rating (Malaysian Rating Corporation Berhad)

Manufactured Capital

List of Digital Channels/Apps from Kenanga:

  • Kenanga Digital Investing
  • iSPEED.my (Rakuten Trade)
  • KenTrade
  • NagaWarrants
  • Kenanga Money
  • KenEasy
  • KenWealth
  • KDF TradeActiveTM
  • Kenanga FX
  • DCO (Digital Client On-boarding)
Human Capital

Total number of Kenanga Group employees:

1,358

Total amount of training hours recorded:

> 40,000 hours

Natural Capital

Total energy consumption:

19,389.9 GJ

Total water consumption:

42,208.1 (m3)

Scope 1 and 2 GHG emissions data:

Scope 1

43.4 tCO2e

Scope 2

3,596.1 tCO2e

Petrol Consumption 18,209.1 litres

Petrol Consumption
18,209.1 litres

Electricity Consumption 5,216,632 kWh

Electricity Consumption
5,216,632 kWh

Social and Relationship Capital

Total number of clients:

> 500,000

Total procurement spent on local entities:

RM 81.5 million

Total number of volunteer hours:

2,423 hours

Total amount invested on community initiatives:

> RM 600,000.00

Key Collaboration & Partnerships:

  • Association of Certified Fraud Examiners
  • United Nations Global Compact
  • UN Women
  • Silent Teddies Bakery
  • Dialogue Includes All Academy
  • LeadWomen
  • Pertubuhan Rahoma Darul Fakir Malaysia
  • National Cancer Society Malaysia
  • Pertubuhan Tindakan Wanita Islam
  • Special Olympics Malaysia Association

STRATEGIES AND FOCUS AREAS

Intellectual Capital

Drive long term sustainability and competitive edge through a consistent strategy of continuously fortifying our core businesses and accelerating digitalisation and regionalisation as imperatives to futureproof our enterprise.

Financial Capital

Diversified range of businesses:

  • Equity Broking
  • Investment Banking
  • Treasury
  • Islamic Banking
  • Listed Derivatives Broking
  • Asset and Wealth Management
  • Money Lending
  • Robo-advisory
Manufactured Capital

The focal point of 2023 was strategically laying the groundwork for the future, embodied by the forthcoming introduction of the Kenanga SuperApp in 2024.

Rakuten Trade expanded its trading access to the Hong Kong Exchange and became the first (1st) in Malaysia to offer US Fractional Share Trading services while the account opening process was revamped for enhanced customer experience.

Human Capital

In 2023, we became a signatory of UN Women’s Empowerment Principles.

Succession and Leadership Planning:

  • Kenanga Talent and Succession Management Framework
  • Kenanga Leadership Programme
  • Talent Management Succession Planning

Talent Attraction and Development:

  • Individual Development Plan
  • Private Retirement Scheme
  • Medical Benefits
  • Training and Learning Opportunities
  • Fitness Memberships
  • Dental and Optical Benefits
  • Employees' Share Option Scheme
  • Hybrid Work Arrangement
Natural Capital

Following the completion of the enhancements made to the air conditioning and air handling unit system in 2022, we transitioned into the monitoring phase in 2023.

Social and Relationship Capital

We continued to organise our flagship annual event, the Fraud Awareness Week, for the seventh (7th) consecutive year in collaboration with the Association of Certified Fraud Examiners.

We also strengthened outreach initiatives through employee volunteerism and support for social enterprises.

In addition to sharing investment knowledge through published articles, webinars, roadshows, exhibitions, and social media, we also participated in various industry-relevant financial literacy events.

KEY OUTCOMES

Intellectual Capital

‘Highest Returns to Shareholders Over Three Years’ and ‘Highest Growth in Profit After Tax Over Three Years’, The Edge Malaysia Centurion Club Corporate Awards 2023

  • Asset and Wealth Management
    LSEG Lipper Fund Awards Malaysia 2024
    • Kenanga Malaysian Inc Fund for ‘best Equity Malaysia Diversified – Malaysia Pension Funds over 10 Years’
    • Kenanga Diversified Fund for ‘best Mixed Asset MYR Flexible – Malaysia Pension Funds over 10 Years’
  • Equity Broking
    • [No. 1] retail stockbroker, with a 25.8% retail segment market share
    • ‘Best Overall Equities Participating Organisation (Champion)’, Bursa Excellence Awards 2023
  • Listed Derivatives Broking
    • #1 Futures broker on Bursa Malaysia Derivatives with 29.6% market share
    • ‘Best Overall Derivatives Trading Participant (Champion)’, Bursa Excellence Awards 2023
    • Maintained our inclusion in FTSE4Good Bursa Malaysia Index with an improved ESG score to 4.0 from 3.7
Financial Capital
  • Net Profit: RM72.8million
  • Dividend: 7.00 sen per ordinary share
  • 13.5% growth in revenue
  • Return on Equity: 6.9%
  • Asset Under Administration: RM 21.7 billion
Manufactured Capital
  • Kenanga SuperApp is set to launch in 2024
  • 276,163 accounts on Rakuten Trade as of December 2023
Human Capital

Gender Representation:

Male

49%

Female

51%

  • Gender Pay Ratio: 1:0.92
  • Return to Work Rate from Parental Leave: 100%
  • 58 employees received professional and role-based certification
  • Zero incidents of workrelated fatalities
  • Improved turnover rate to 15.3 from 18.1%
Natural Capital
  • ‘Energy-Efficient Building in Retrofitted Building’, National Energy Awards 2023
  • 23% reduction in electricity consumption at Kenanga Tower against baseline (average consumption of total usage in 2018 and 2019).
Social and Relationship Capital
  • ‘Bank of the Year – Outstanding Sustainability Champion’, Sustainability & CSR Awards 2023
    • Over 2,300 participants registered for our annual Fraud Awareness Week in FY2023
  • Direct positive impact to over 2,700 individuals in marginalised communities
  • Involved in over 110 financial literacy programmes
Download PDF

OUR SUSTAINABILITY APPROACH

We acknowledge the significant role we play in contributing to the development of a sustainable future. Our commitment is rooted in integrating sustainability into our operations, generating shared value for all stakeholders. We consistently incorporate sustainability into our business practices and decision-making processes, recognising it as both a driver of risks and a source of opportunities.

Sustainable Economic Growth

Download PDF

Integrate ESG factors into our business decisions and value chain and manage ESG risks and opportunities as we innovate to build a sustainable future.

Alignment with UN SDGs

Responsible Investment

Incorporate ESG factors into our investment processes, offer and promote sustainable products and solutions and take an active stewardship role in the companies in which we invest.

Digitalisation

Leverage technological advancements to develop secure, meaningful and innovative products and solutions that will help shape the future investing.

Environmental Stewardship

Download PDF

Promote climate positive culture within the organisation and relevant external stakeholders to attain a low carbon economy.

Alignment with UN SDGs

Climate Impact

Take ownership of climate risks and opportunities of our operations through monitoring environmental performance, identifying and practising behaviours to promote climate positive action and outcomes.

Empowering People and Communities

Download PDF

Create a positive impact on our employees, clients, and business associates, as well as communities in need.

Alignment with UN SDGs

Diversity, Inclusion and Wellbeing

Inculcate an equitable workplace culture that recognises the unique needs and contributions of employees and where employee rights, health, safety and wellness are promoted.

Community Investment

Enhance financial literacy for investors and the community through education. Reaching out to communities in need through targeted social investments and employee volunteerism.

Good Governance

Download PDF

Lead a responsible business underpinned by a robust compliance culture and high levels of ethical standards.

Alignment with UN SDGs

Good Business Conduct

Promote and embed good business conduct and high standards of integrity throughout the organisation, operate ethically and transparently and in compliance with applicable laws and regulations.

Sustainable Economic Growth

Integrate ESG factors into our business decisions and value chain and manage ESG risks and opportunities as we innovate to build a sustainable future.

Alignment with UN SDGs

Responsible Investment

Incorporate ESG factors into our investment processes, offer and promote sustainable products and solutions and take an active stewardship role in the companies in which we invest.

Digitalisation

Leverage technological advancements to develop secure, meaningful and innovative products and solutions that will help shape the future investing.

Download PDF

Environmental Stewardship

Promote climate positive culture within the organisation and relevant external stakeholders to attain a low carbon economy.

Alignment with UN SDGs

Climate Impact

Take ownership of climate risks and opportunities of our operations through monitoring environmental performance, identifying and practising behaviours to promote climate positive action and outcomes.

Download PDF

Empowering People and Communities

Create a positive impact on our employees, clients, business associates, as well as communities in need.

Alignment with UN SDGs

Diversity, Inclusion and Wellbeing

Inculcate an equitable workplace culture that recognises the unique needs and contributions of employees and where employee rights, health, safety and wellness are promoted.

Community Investment

Enhance financial literacy for investors and the community through education. Reaching out to communities in need through targeted social investments and employee volunteerism.

Download PDF

Good Governance

Lead a responsible business underpinned by a robust compliance culture and high levels of ethical standards.

Alignment with UN SDGs

Good Business Conduct

Promote and embed good business conduct and high standards of integrity throughout the organisation, operate ethically and transparently and in compliance with applicable laws and regulations.

Download PDF

HOW WE ARE GOVERNED

Corporate Governance Overview Statement

Corporate Governance is regarded by the Board of Directors (“Board”) as vital to the success of the business of Kenanga Investment Bank Berhad (“KIBB” or “the Company”). Therefore, the Board is unreservedly committed to applying the principles necessary to ensure that the principles of good governance are practised in all of the Company’s business dealings and operations.

Download PDF

Ethics And Compliance Statement

In line with the regulatory emphasis on ethical conduct, Kenanga Investment Bank Berhad and Its Subsidiaries (“KIBB Group” or “Kenanga Group” or “the Group”) remains dedicated to promoting ethical behaviour and integrity across all facets of its operations. By adhering to stringent ethical standards and regulatory compliance, we aim to safeguard the interests of our stakeholders while delivering value propositions that resonate with integrity and transparency.

Download PDF

Statement on Risk Management and Internal Control

Pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”), a listed issuer must ensure that its Board of Directors (“Board”) includes in its annual report a statement about the state of its risk management and internal controls as a group. In addition, the Malaysian Code on Corporate Governance also stipulates that the Board should maintain a sound system of internal controls and review its effectiveness to safeguard Shareholders’ investments and the Group’s assets.

Download PDF

50TH ANNUAL GENERAL MEETING

Mon

27

Tue

28

Wed

29

Thu

30

Fri

31

Sat

1

Sun

2

Date: Thursday, 30 May 2024
Time: 11:00 a.m.
Broadcast Venue: Level 19,
Kenanga Tower,
237, Jalan Tun Razak,
50400 Kuala Lumpur,
Wilayah Persekutuan, Malaysia		 Level 19, Kenanga Tower,
237, Jalan Tun Razak,
50400 Kuala Lumpur,
Wilayah Persekutuan, Malaysia

Add to Calendar