Kenanga Investment Bank Bhd (Kenanga) today announced a 49.4% rise in profit after tax and non-controlling interest (Net Profit) for the second quarter ended June 30, 2021 (2Q21) to RM30.6 million, as compared to RM20.5 million in the same period last year (2Q20).
For the six months period ended 30 June 2021 (1H21), net profit increased four-fold to RM64.7 million, from RM13.5 million in 1H20.
Consolidated revenue for 2Q21 stood at RM212.6 million, marginally higher from RM210.6 million in 2Q20. Annualised Return on Equity (ROE) is at 12.8%, compared to full-year 2020 of 10.7%.
The stronger earnings were largely attributed to higher contributions from the stockbroking and investment and wealth management businesses, as well as a higher share of profits from the joint venture with Rakuten Trade.
More than half of the Group’s profit before tax was contributed by the stockbroking segment, which continued to remain as the Group’s major earnings contributor.
Rakuten Trade, the Group’s joint venture and Malaysia’s first full-fledged online equity broker, continued to record solid average monthly account opening at 6,800 accounts for 2Q21. At the end of June 2021, Rakuten had a total of 217,400 accounts, 51,600 more than it had a year ago. That, coupled with the scalability of the business have also contributed to the increase in the Group’s bottom-line.
Group Managing Director of Kenanga Investment Bank Bhd, Datuk Chay Wai Leong says, “The Group continued to report a set of commendable results in the second quarter. Economies of scale, particularly in our stockbroking division and Rakuten Trade, have helped improve the Group’s profitability. With the digital infrastructure well in place, the cost of acquiring and maintaining new customers has been decreasing as we grow.”
“While the average daily trading value on Bursa Malaysia has moderated in the third quarter due to lockdown concerns arising from the resurgence of Covid-19 infections in Malaysia, we remain hopeful that the economy will rebound swiftly as the roll-out of the national vaccination programme gains momentum.”
