Bursa Malaysia Berhad has recorded a Profit After Tax and Minority Interest (“PATAMI”) of RM272.9 million for the nine-month financial period ended Sept 30, a 94.5 percent increase from RM140.3 million reported in the previous corresponding period ended September 30, 2019
The increase in PATAMI is due to higher operating revenue, which increased by 55 percent to RM554.0 million from the previous corresponding period.
Meanwhile, total operating expenses in 9M2020 increased by 11.1 percent to RM200.4 million from RM180.3 million in 9M2019 due to higher staff costs, professional fees and information technology maintenance cost.
“Against the backdrop of unprecedented circumstances, the Exchange delivered an exceptional 9M2020 financial performance, recording the highest ever nine-month PATAMI since listing in 2005,” said Umar Swift, Chief Executive Officer of Bursa Malaysia.
Investor participation in the Securities Market continued to increase, with average daily trading value (“ADV”) growing by 101.8 percent to RM4 billion in 9M2020 compared to RM2 billion in 9M2019.
As a result, Securities trading revenue increased by 101.1 percent to RM349.2 million in 9M2020 from RM173.6 million in 9M2019.
The additional number of trading days and the higher effective clearing fee in 9M2020 also contributed to the increase in trading revenue. Trading velocity increased by 34 percentage points to 62 percent compared to 9M2019.
Non-trading revenue increased by 7.0 percent to RM110.9 million from RM103.6 million in the previous corresponding period.
This was contributed by higher market data revenue which increased by 20.4 percent to RM26.7 million in 9M2020 from RM22.2 million in 9M2019, underpinned by the rise in the number of new subscribers.
Depository services revenue also increased by 9.3 percent to RM34.4 million in 9M2020 from RM31.5 million in 9M2019 due to higher Record of Depositors fees and account opening fees earned.
The Exchange will continue to build on its data-related offerings to improve non-trading revenue and ensure the long-term resilience of earnings in all market conditions.
Derivatives Market trading revenue increased by 33.8 percent to RM69.2 million in 9M2020 from RM51.7 million in 9M2019, mainly due to higher number of contracts traded for Crude Palm Oil Futures (“FCPO”) and FTSE Bursa Malaysia KLCI Futures (“FKLI”).
Total average daily contracts (“ADC”) for the Derivatives Market increased by 41.3% to 74,408 contracts in 9M2020 compared to 52,644 contracts in 9M2019.
As for the Islamic Capital Market, trading revenue for Bursa Suq Al-Sila’ (“BSAS”) in 9M2020 decreased by 13.5 percent to RM9.6 million from RM11.1 million in 9M2019 despite the growth in ADV by 3.0 percent to RM32.5 billion in 9M2020.
This was mainly due to higher trades under the volume-based pricing scheme that attracts a lower fee. Trading on BSAS is expected to sustain for the rest of the year supported by the increase in foreign participation.
“While key economic indicators are pointing towards an improving outlook for the Malaysian economy, the on-going developments of the Covid-19 pandemic will continue to influence the volatility and performance of the Securities and Derivatives markets,” commented Umar.
“Despite the challenges, we are well-positioned to continue developing the marketplace and make further progress on our strategic plans. We have seen promising results after successfully conducting five listing ceremonies and holding our flagship events, namely, Invest Malaysia Conference and Palm and Lauric Oils Price Outlook Conference & Exhibition fully virtual. Each of these initiatives is important towards ensuring our offerings remain relevant to our diverse range of investors,” Umar concluded.