KUALA LUMPUR: Bursa Malaysia Bhd's net profit dropped 36.2 per cent to RM226.57 million in the financial year ended December 31, 2022 (FY22), from RM355.25 million recorded in the same period a year ago, due to lower trading revenue recorded by the securities market.
Revenue in the same period decreased by 21.4 per cent to RM603.25 million from RM767.54 million.
In a statement today, the stock exchange regulator said the securities market registered trading revenue of RM263.5 million in FY22 compared to RM442.9 million in FY21, a decrease of 40.5 per cent, due to lower average daily value (ADV) traded for the securities market's on-market trades and direct business transactions.
On the contrary, Bursa Malaysia said the derivatives market trading revenue rose by 11.3 per cent to RM97.2 million in FY22 from RM87.3 million in FY21, partly due to higher collateral management fees earned as a higher number of FCPO and FKLI contracts traded.
Meanwhile, Bursa Suq Al-Sila's (BSAS) trading revenue increased by 17.8 per cent to RM16.4 million in FY22 from RM14.0 million in FY21.
Bursa Malaysia has declared a final dividend of 11.5 sen per share, amounting to approximately RM93.1 million.
This brings the total dividend payout for FY22 to 26.5 sen per share, which includes the interim dividend of 15 sen per share paid out in Aug 2022.
For the fourth quarter (Q4), Bursa Malaysia's net profit was lower by 24.6 per cent to RM49.01 million from RM64.95 million, while revenue slid 11.8 per cent to RM145.7 million from RM165.18 million.
Chairman Tan Sri Abdul Wahid Omar said Bursa Malaysia enjoyed another year of "resilient performance" despite challenging global operating conditions resulting in the softening of trading in the securities market.
"Trading value declined by 41.5 per cent with ADV of RM2.1 billion in 2022, but this is still higher than pre-pandemic ADV of RM1.9 billion.
"The derivatives market, however, performed better with average daily contracts (ADC) increasing by 4.6 per cent from 75,178 contracts in FY21 to 78,621 contracts in FY22.
"Our Commodity Murabahah platform, BSAS similarly performed well with 22.3 per cent higher ADV from RM37.3 billion to RM45.6 billion," he said.
Abdul Wahid added that Bursa had a very active listing interest on the exchange with 35 initial public offerings (IPOs) recorded in FY22 that raised a total of RM11.5 billion, higher than the 30 IPOs recorded in FY21.
"These numbers prove that both companies and investors have confidence in the Malaysian capital market, and look at Bursa Malaysia as a worthy platform for fundraising and investing," he added.
Meanwhile, chief executive officer Datuk Muhamad Umar Swift said the market data business segment improved in FY22, delivering 12.5 per cent growth to RM60.8 million from RM54.0 million in FY21.
"To achieve further growth in our non-trading revenue, we will continue improving the delivery of richer data to clients to empower the industry to undertake analytics or offer better products or services.
"The exchange recently signed Memorandums of Understanding (MOUs) with the Companies Commission of Malaysia and the Department of Statistics Malaysia, to collaborate on mutual data sharing arrangements with the objective of unlocking new revenue opportunities, while supporting the national data and digitalisation agenda," he said.
