Independent investment bank, Kenanga Investment Bank Bhd today announced a net profit of RM86.5 million for the nine months period ended September 30, 2021 (9M21), a 37.4% jump from RM63 million for the same period last year (9M20).
Year-to-date (YTD) net income stood at RM586.3 million, up by 1.4% from the previous corresponding period, while operating expense reduced marginally to RM490.7 million. Annualised Return on Equity based on 9M21 is at 11.3% compared to 9.0% at 9M20.
The strong earnings were mainly due to higher contribution from stockbroking and investment management businesses, as well as share of profits from the joint venture with Rakuten Trade Sdn Bhd.
Its Stockbroking division achieved a PBT of RM68.8 million for 9M21 vis a vis RM52.7 million from the same period last year, mainly due to higher net interest, improved net trading and investment income, as well as, lower credit loss expenses. Net equity trading investment income increased to RM56.0 million, up 40.2% from the corresponding period.
The division continued to grow its market share, particularly in the retail segment, from 21.9%, to 23.5%, reinforcing its position as one of the largest retail brokers in the marketplace. During the same period, Rakuten Trade, achieved yet another milestone, with the fast-growing online trading platform surpassing 200,000 registered accounts.
“With the gradual reopening of all economic sectors and lifting of restrictions, underpinned by the progress of COVID-19 vaccination campaign, deployment of stimulus measures and the unleashed pent up demand, we remain cautiously optimistic of the country’s economic outlook into the new year,” commented Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Bhd.
