Kenanga Investment Bank Records Profit Before Tax of RM81.6 Million for The First Nine Months, Highest in Over 10 Years

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Thriving through Digitisation and Retail Business

Kuala Lumpur, 27 November 2020 – Kenanga Investment Bank Berhad (“Kenanga Group”) today announced its third quarter financial results (“3Q20”). Profit before tax (“PBT”) for the quarter topped RM63.3 million, a seven-fold hike from the same period last year. Consolidated PBT for the first nine months, rose to RM81.6 million, highest in over 10 years for the country’s leading independent investment bank.

This was largely driven by increased brokerage fees, higher net interest income, trading and investment income, as well as, management fee income. It also recorded a share of profits from its joint venture company, Rakuten Trade.

For the quarter under review, net income stood at RM289.5 million, a surge from the corresponding period of RM110.5 million. Net income for the nine-month ended 30 September 2020, stood at RM577 million, an increase of 72% from the same period last year.

“This year has been an extraordinary year for the equity markets globally, boosted by heightened retail participation. Kenanga Group’s strong foothold in the retail segment, augmented by digital transformation that we kick-started a few years ago, put us in a pole position this year to capitalise on sudden customer shift to online broking and the surge in trading volumes. Despite the intense competitive landscape, we continue to grow market share and aim to sustain this traction through new digital products and innovative solutions that are in the pipeline,” commented Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad.

“Rights issues is one of the fastest and cost-efficient methods of fund raising for public listed companies and is a popular option. With the recent announcement by the capital market regulators of a temporary relief measure to allow an expedited process for rights issues, we expect to see an increased in appetite from listed companies to undertake this route to fast-track their fund-raising needs,” added Datuk Chay.

“On many levels, this year has validated the importance of being in the forefront of technology. We are on track with our digitisation blueprint and will continue to build a robust ecosystem for our customers, accelerate growth, reinforce resilience, and safeguard the interests of our stakeholders. It has been a strong year for us and we are well-positioned to move into the new year on a positive note,” said Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad.

This milestone follows Kenanga Group’s acquisition of 4.99% equity interest in Merchantrade Asia, the country’s leading e-money player to explore digital opportunities together. Kenanga Group had also announced a partnership with the award-winning digital supply chain financing company, Bay Group Holdings Sdn Bhd (CapBay), in a bid to transform the traditional factoring market in Malaysia.

These partnerships join a line-up of digital initiatives that Kenanga Group has embarked on in recent years, which includes the successful joint venture with Japan based Rakuten Inc, to introduce Rakuten Trade as the first fully online stock trading platform in Malaysia. Kenanga had also earlier this year, presented its first-in-the market algorithmic trading calls, which generates trading strategies for the retail segment.  Additionally, the Group is expected to roll-out a robo-advisory platform by Q1 2021. 

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