by AZREEN HANI/ TMR PIX
KENANGA Investment Bank Berhad’s posts RM63.3 million profit before tax (PBT) for its third quarter financial results (3Q20), a seven-fold hike from the same period last year while its consolidated PBT for the first nine months, rose to RM81.6 million, the highest in over 10 years.
The performance was largely driven by increased brokerage fees, higher net interest income, trading and investment income, as well as management fee income.
It also recorded a share of profits from its joint venture company, Rakuten Trade.
For the quarter under review, net income stood at RM289.5 million, a surge from the corresponding period of RM110.5 million.
Net income for the nine–month ended 30 September 2020, stood at RM577 million, an increase of 72% from the same period last year.
“This year has been an extraordinary year for the equity markets globally, boosted by heightened retail participation. Kenanga Group’s strong foothold in the retail segment, augmented by digital transformation that we kick-started a few years ago, put us in a pole position this year to capitalise on sudden customer shift to online broking and the surge in trading volumes,” Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad said in a statement today.
“Despite the intense competitive landscape, we continue to grow market share and aim to sustain this traction through new digital products and innovative solutions that are in the pipeline,” he added.
This milestone follows Kenanga Group’s acquisition of 4.99% equity interest in Merchantrade Asia, the country’s leading e-money player to explore digital opportunities together.
Kenanga Group had also announced a partnership with the award-winning digital supply chain financing company, Bay Group Holdings Sdn Bhd (CapBay), in a bid to transform the traditional factoring market in Malaysia.
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