KUALA LUMPUR (Jan 31): Bursa Malaysia Bhd’s net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022) declined by 24.55% to RM49.005 million from RM64.95 million a year ago, due to lower trading revenue in the securities market.
Trading revenue in the securities market decreased by 27.1% to RM60.5 million in the quarter under review, from RM83 million in 4QFY2021, mainly due to lower average daily trading value (ADV) for on-market trades and direct business trades that declined 21.4% to RM2.09 billion from RM2.66 billion.
The exchange's overall revenue for 4QFY2022 fell 11.79% to RM145.7 million from RM165.18 million, its bourse filing showed. Earnings per share declined to 6.1 sen from 8 sen.
Bursa declared a final dividend of 11.5 sen per share, amounting to about RM93.1 million, to be paid on March 1. This raised its total dividend payout for FY2022 to 26.5 sen per share.
For the full FY2022, Bursa’s net profit dropped 36.22% to RM226.57 million from RM355.25 million, as revenue for the year fell 21.4% to RM603.24 million from RM767.54 million, with trading revenue in the securities market contracting 40.5% to RM263.5 million from RM442.9 million.
In a statement, Bursa chairman Tan Sri Abdul Wahid Omar said trading value dropped 41.5% with ADV of RM2.1 billion in 2022 -- which is still higher than the pre-pandemic ADV of RM1.9 billion — amid challenging global operating conditions resulting in the softening of trading in the securities market.
The derivatives market performed better, with average daily contracts increasing by 4.6% from 75,178 contracts in FY2021 to 78,621 contracts in FY2022.
“Our commodity murabahah platform, BSAS (Bursa Suq Al-Sila’) similarly performed well with [a] 22.3% higher ADV from RM37.3 billion to RM45.6 billion," said Abdul Wahid.
In addition, 35 initial public offerings (IPOs) were recorded in FY2022 — higher than the 30 IPOs recorded in FY2021 — raising a total of RM3.5 billion, the chairman said.
“We are invariably focused on enhancing the attractiveness of the exchange to market participants, and our shareholders. As espoused under the PLC Transformation Programme, we are stepping up by committing to five Headline KPIs for FY2023 − covering targets for profit before tax, non-trading revenue growth of 5% to 7%, 39 IPOs, innovative product launches including the Bursa Gold Dinar, and reduction in our organisation’s emissions,” he added.
Bursa finished seven sen or 1.03% lower at RM6.71 on Tuesday, translating into a market capitalisation of RM5.43 billion.