Investment bank, Kenanga Investment Bank Berhad (Kenanga) has recorded a net profit of RM102.1 million at the end of December 2020 (FY20). The group’s consolidated revenue also increased to RM973.8 million in FY20 from RM651.3 million in FY19.
For the fourth quarter of 2020 (Q420), the group recorded a revenue of RM276.8 million compared to RM166.2 million.
The Average Daily Trading Value (ADV) of securities on Bursa Malaysia reached RM4.2 billion in 2020.
The bumper growth was mainly driven by three key segments which are stockbroking, investment banking, and investment and wealth management.
Kenanga benefitted from the heightened trading activities with full year profit before tax (PBT) from the stock broking segment rose to RM86.8 million compared to RM9.5 million last year.
Additionally, PBT from the investment banking segment, which includes corporate banking and treasury, rose to RM34.0 million in FY20 from RM24.7 million in FY19 due to higher net interest income.
The investment and wealth management segment also saw improvement owing to higher management fees and performance fees generated. PBT from the segment increased to RM13.6 million for FY20 as compared to RM5.2 million in FY19.
“Our stock broking market share increased over 30 percent. We ended the year as the number one retail stockbroker in Malaysia by trading value.
This was most evident in our joint venture company, Rakuten Trade, a fully online stockbroking platform which received record high account opening and trades.
The platform ended the year with 166,000 trading accounts under its belt, making it the fastest growing stockbroker in the market,” Group Managing Director of Kenanga, Chay Wai Leong said.
Kenanga will also be looking to build a digital ecosystem with services like robo-advisory, margin financing, e-wallet, and digital asset exchanges.
The group has a dividend policy to distribute a minimum of 50 percent of net profit to shareholders and will announce the dividend for FY20 upon approval from Bank Negara Malaysia.