KUALA LUMPUR: Kenanga Investment Bank Bhd posted a net profit of RM32.2mil in the fourth quarter ended Dec 31, 2021 (4Q21), down 18% from RM39.29mil a year ago.

       Revenue for the period fell 18.3% to RM226.1mil from RM276.81mil a year earlier.

       Kenanga’s board of directors has declared a dividend of 10.5 sen per share, the highest since becoming an investment bank.

       The dividend entitlement and payment dates will be determined by the board of Kenanga in due course.

       For the full financial year, Kenanga’s net profit rose 16% to RM118.39mil against RM102.1mil in the preceding year.

       Revenue, however, was lower at RM891.5mil against RM973.7mil a year ago.

       Kenanga said the annualised return on equity (ROE) stood at 11.5%, up from 10.7% and earnings per share rose by 11.9% to 16.3 sen compared to 14.6 sen the year before.

       “The year 2021 was a year of two halves for the Malaysian capital markets. The first half was largely shaped by the same robust momentum that fuelled our bumper year in 2020.

       “The retail-driven strong trading volumes on Bursa Malaysia led to the excellent performance in our stockbroking business,” group managing director Datuk Chay Wai Leong said in a statement.

       However, he said this momentum moderated sharply in the second half of the year, as the country was hit by multiple headwinds, including the reintroduction of lockdown measures in the middle of the year due to surging Covid-19 cases.

       “The FBM KLCI, which hovered above 1,600 points at the start of the year, slipped below 1,500 points during the second half. Daily average trading value weakened to RM4.1bil in December from a high of RM10.6bil in February,” he said.

       Chay said despite the tumultuous year, its stockbroking business continued to contribute the lion’s share of its 2021 bottom line which was further reinforced by the significant strides made by both our asset management and private equity businesses.

       “This enabled us to thrive through the volatilities to deliver a stellar performance that beat the odds – a testimony to the strength of our diversified strategy,” he said.

       “Looking forward, digital, which has been central in shaping our growth journey, will continue to play a pivotal role in powering our next phase of advancement,” he added.