Kenanga registers RM25.9m profit for second quarter, a threefold y-o-y increase

Kenanga Investment Bank Bhd has chalked a threefold jump in a profit before tax of RM25.9 million for its second quarter (2Q20) from the same period last year. — Screengrab from kenanga.com.my
Kenanga Investment Bank Bhd has chalked a threefold jump in a profit before tax of RM25.9 million for its second quarter (2Q20) from the same period last year. — Screengrab from kenanga.com.my

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KUALA LUMPUR, Aug 25 — Kenanga Investment Bank Bhd registered a profit before tax of RM25.9 million for its second quarter (2Q20) financial results, which is a threefold increase from the same period last year.

The group’s net income for the quarter under review achieved a 46 per cent hike of RM170.1 million on the back of increased brokerage fees, trading and investment income as well as management fee income.

At the same time, it pointed out that the recent market volatility had catalysed a surge in participation from local retail investors and fuelled high record trading activities in the equities market.

Trading volume on Bursa Malaysia was recently reportedly to have swelled to a daily record of 26.65 billion, with the number of shares traded standing at RM9.05 billion — highest in the region.

“The last few months has truly validated our digital strategy which we 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.

“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,” said group managing director Datuk Chay Wai Leong.

“With our prudent risk management practices and strong foothold in the retail market, we are well positioned to end the year on a positive note,” he added.

Among its recent successes on the digital front saw its joint venture Rakuten Trade registering over 60,000 new traders in the first half of this year, thereby allowing it to cross the 100,000 mark.

At the same time, Kenanga Group had also enabled its team of 1,000 dealers and remisiers to operate from home via its remisier portal during the movement control order (MCO).

Additionally, the bank had also received approval in principle from the Securities Commission Malaysia to roll out a robo-advisory platform.

“Underlining its commitment to pursue innovation, the Kenanga Group recently announced a partnership with award-winning digital supply chain financing company, Bay Group Holdings Sdn Bhd (CapBay), in a bid to transform the traditional factoring market in Malaysia.

“The digital supply chain financing solution will grant quicker access to traditional and peer-to-peer financing, thus accelerating access to working capital financing for Malaysian entrepreneurs,” said the statement.


 

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