Kenanga Investment Bank Announces RM176.9 million Revenue, RM18.6 million Net Profit in Q2 2022 

Kuala Lumpur, 30 August 2022: Kenanga Investment Bank Berhad (“Kenanga” or “The Group”) today announced its second quarter financial results for the period ended 30 June 2022 (“2Q22”).   

The Group reported a revenue and profit before tax (“PBT”) of RM176.9 million and RM20.3 million respectively for 2Q22, compared to the corresponding period last year when revenue was RM212.6 million and PBT was RM37.6 million. Net profit stood at RM18.6 million vis a vis RM30.7 million the same period last year. The results were underpinned by the lower contribution from brokerage fee income as well as trading and investment income, partially mitigated by higher management fee income.  

In line with the lower trading volumes and volatile trading activities on Bursa Malaysia, Kenanga’s stockbroking division recorded lower revenue of RM72.6 million and PBT of RM2.7 million, relative to the revenue of RM127.4 million and PBT of RM20.0 million in the same period last year. Nevertheless, the division continue to grow its retail segment market share from 23.48% in the same period last year to 28.04% in 2Q22, reinforcing its role as one of the largest and fastest growing retail stockbrokers in the marketplace.  

Its Investment Banking business recorded a marginally lower revenue of RM42.6 million and a PBT of RM3.2 million compared to the revenue and PBT of RM45.8 million and RM5.5 million respectively in the previous corresponding period, as a result of lower interest income and trading and investment income. 

The Group’s Investment and Wealth Management business performed exceptionally well with a 72.7% jump in revenue to RM58.1 million, and 127.2% increase in PBT to RM14.1 million. The significant increase was attributed to higher management and performance fee contribution from retail unit trust funds and alternative products. Its Asset under Administration also grew by 31.5% to RM20 billion in the quarter under review from RM15.2 billion in the same period last year. 

Likewise, the Group’s Futures division also reported a higher revenue as well as net income at RM5.0 million and RM4.5 million compared to RM4.2 million and RM3.9 million respectively from the previous corresponding period as a result of higher trading activities and higher interest income generated.  

Its Money Lending and Financing division registered a revenue of RM2.2 million, relatively similar to the previous corresponding quarter of RM2.2 million. However, it reported a higher PBT of RM257,000 against RM209,000 in the individual period ended 30 June 2021 as a result of lower personnel cost.  

“While it is encouraging that the Malaysian economy is projected to expand further supported by the continued recovery in the services sector and private consumption, the growth will be subjected to several risks such as the worsening global supply chain conditions amid the Russia-Ukraine crisis, China’s zero-COVID policy as well as the global financial uncertainty due to the tightening of monetary policy by the US Federal Reserve and other central banks,” said Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad.   

“Despite all this, we remain resilient to the macroeconomic headwinds and financial market volatility, and we are optimistic that the capital market will improve in the second half of the year as we continue focusing on powering our transformation journey with digitalisation. Doing so will allow us to deliver long-term shareholder value as well as position ourselves with agility as we respond to the growing changing conditions of the industry that we operate in,” concluded Datuk Chay. 

Kenanga recently signed a Memorandum of Understanding with Ant Group to leverage mPaas, a mobile development platform from Ant Group’s digital technology unit to launch Malaysia’s first Wealth SuperApp. The SuperApp is geared to revolutionise how Malaysians approach wealth generation and management by unifying a broad spectrum of financial offerings under one roof, allowing wealth creation to be more accessible.  

The development of this SuperApp extends the portfolio of digital products that Kenanga has successfully rolled out, from Rakuten Trade, Malaysia’s fastest growing online stock trading platform, to Kenanga Digital Investing, a robo-advisor that has amassed over RM250 million in Asset under Management in six months. 

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