Kenanga Investment Bank’s Q2 net profit soars more than threefold

PETALING JAYA: Kenanga Investment Bank Bhd net profit increased 3.6 times to RM20.47 million for the second quarter ended June 30, from RM5.6 million posted in the same quarter of the previous year contributed by higher brokerage fees, trading and investment income as well as management fee income, in addition to a first time share of profits from its joint venture company, Rakuten Trade.

Revenue for the period stood at RM209.74 million, a 24.1% increase from RM169.05 million reported previously.

For the first half of the year, its net profit increased by 1% to RM13.52 million against RM13.39 million reported in the same half of the previous year.

Kenanga’s revenue for the period rose 15% to RM374.84 million from RM325.69 million reported previously.

According to the group’s Bursa disclosure, it is cognisant of the economic downturn and market uncertainty arising from the Covid-19 pandemic and has taken steps to mitigate the impact.

Hence, it remains cautiously optimistic that it can deliver results to its shareholders by managing its risks prudently and leveraging on its strengths in the retail market.

Kenanga noted that the recent market volatility has catalysed a surge in participation from local retail investors, fuelling record-high trading activities in the equities market.

Its group managing director Datuk Chay Wai Leong commented that the last few months has truly validated its digital strategy which it embarked on a few years ago.

“Digitalisation has enabled us to support the recent resurgence in retail participation, and to capitalise on the bullish stock market sentiments,” he said in a press release.

“We are committed to fast-track our pursuit of innovation to further transform operational effectiveness, elevate customer experience and to provide a robust all-encompassing investing ecosystem for Malaysian investors.”

Chay highlighted due to its prudent risk management practices and strong foothold in the retail market, the group is well positioned to end the year on a positive note.

source https://www.thesundaily.my/business/kenanga-investment-bank-s-q2-net-profit-soars-more-than-threefold-AM3608839