Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Nov 22): Kenanga Investment Bank Bhd's (Kenanga IB) net profit rose 6.9% to RM5.79 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM5.42 million a year ago, on bad debt recovery from a court case settlement, higher net interest income and management fees income generated, coupled with lower overhead expenses and share of losses from associates.

These were partially negated by lower trading and investment income and lower net brokerage fees and higher share of loss from joint venture.

This resulted in a higher earnings per share of 0.82 sen for 3QFY18, compared with 0.75 sen for 3QFY17.

Quarterly revenue also climbed 3.1% to RM177.3 million, from RM171.94 million in 3QFY17.

In a filing with Bursa Malaysia today, Kenanga IB said the pre-tax profit recorded in the stockbroking segment in the current quarter under review fell 11% year-on-year, mainly as a result of higher personnel and establishment cost.

"Investment banking registered higher pre-tax profit in 3QFY18 compared with 3QFY17, as a result of increase in net trading and investment income, contributed by gain on disposal of bonds and higher foreign exchange gain, loan and processing fees and advisory fees income, partially negated by lower placement fees income," the filing added.

For the cumulative nine months (9MFY18), the bank's net profit doubled to RM24.35 million from RM11.67 million a year ago, while revenue grew 2.2% to RM526.75 million from RM515.42 million in 9MFY17.

On prospects, Kenanga IB expects an increasingly negative market sentiment to limit capital inflows during the coming months.

"The domestic capital market continues to experience large fund outflows since the general election in early May. Trade tensions, high oil prices and US Federal Reserve rate hikes heighten investors' risk concerns, adding to market volatility and capital outflows.

"Despite the negative sentiments in both external and domestic markets, the group expects its financial performance for 2018 to be satisfactory and to still outperform last year's results," it added.

Kenanga IB shares closed 0.5 sen or 0.8% lower at 62 sen today, with 58,000 shares done, bringing a market capitalisation of RM433.99 million.

      Print
      Text Size
      Share