KUALA LUMPUR: Kenanga Investment Bank Bhd reported a net profit of RM22.8 million for the first quarter ended March 31, 2024 (1Q24), an increase from the RM10.2 million recorded in the same quarter last year.
The bank attributed this performance to higher trading and investment income, increased management fee income, and a substantial profit contribution from its Saudi Arabian associate company, Al Wasatah Al Maliah.
Kenanga's revenue increased by 13.6 per cent, rising from RM179.8 million to RM204.2 million, with pre-tax profit growing to RM26.7 million for 1Q24.
"For the period under review, the group's Investment and Wealth Management business reported a boost in revenue to RM54 million, a 6.0 per cent increase from first quarter of 2023 (1Q23), primarily driven by increased management fees income.
"Furthermore, its asset under administration expanded to RM22.8 billion, up 9.6 per cent from the same quarter last year. Pre-tax profit for this quarter stood at RM7.6 million," it said.
Kenanga's stockbroking division strengthened its position with a retail market share of 25 per cent and achieved a 20 per cent revenue increase, reaching RM84.8 million in 1Q24 compared to 1Q23.
"This growth was attributable to increased trading and investment income, alongside brokerage fee income, buoyed by increased trading volume on the local bourse," the investment bank added.
Despite the growth, the division reported a marginal pre-tax loss of RM1.2 million due to impairment provisions stemming from an abnormal sell-down of selected counters in January.
"We do not expect further credit provisions that would significantly impact equity broking's financial performance for the rest of the year," Kenangan said.
Kenanga group managing director Datuk Chay Wai Leong stated that it remains cautiously optimistic about the outlook.
"Barring any unforeseen external shocks, we expect to see an upward trend in trading volume on Bursa Malaysia as the economy continues its positive trajectory," he added.
