PETALING JAYA: Kenanga Investment Bank Bhd’s net profit for the second quarter (Q2) ended June 30, 2021 surged 49.4% to RM30.6mil from RM20.5mil posted in the same quarter last year.

       For the six-month period (H1), net profit increased four-fold to RM64.7mil from RM13.5mil in H1 20.

       Consolidated revenue for Q2 stood at RM212.6mil, marginally higher than the RM210.6mil recorded in the similar quarter last year.

       Annualised return on equity (ROE) was at 12.8%, compared to the 10.7% of full-year 2020.

       The stronger earnings were largely attributed to higher contributions from the stockbroking and investment and wealth management businesses, as well as higher share of profits from the joint venture with Rakuten Trade.

       More than half of the group’s profit before tax (PBT) was contributed by the stockbroking segment, which continued to remain as the group’s major earnings contributor.

       Kenanga Investment Bank

       PBT from this segment rose 45.3% to RM20mil in Q2, as compared to RM13.7mil in the same period last year.

       The improvement was mainly due to a higher net interest income as well as trading and investment income.

       Likewise, PBT contribution from the investment and wealth management division more than doubled to RM6.2mil due to higher management fee income generated on the back of increased asset under management and sales agency force.

       Rakuten Trade, the group’s joint venture (JV) and Malaysia’s first full-fledged online equity broker, continued to record solid average monthly account openings at 6,800 accounts for Q2.

       At the end of June 2021, Rakuten had a total of 217,400 accounts, 51,600 more than it had a year ago. That, coupled with the scalability of the business, has also contributed to the increase in the group’s bottom-line.

       Kenanga Investment Bank group managing director Datuk Chay Wai Leong (pic) said, “We are pleased that the group continued to report a set of commendable results in Q2, driven by our stockbroking division.

       “While the average daily trading value on Bursa Malaysia has moderated in Q3 due to lockdown concerns arising from the resurgence of Covid-19 infections in Malaysia, we remain hopeful that the economy will rebound swiftly as the roll-out of the national vaccination programme gains momentum.

       “Looking forward, we will remain focused on strengthening our business fundamentals and expanding our current offerings to ensure we remain resilient and agile in responding to the changing needs within the core businesses we operate in.”