Bursa posts highest 9M net profit in 5 years

PETALING JAYA: Bursa Malaysia Bhd's net profit for the nine months ended Sept 30, 2014 (9M 2014) rose 4.20% to RM145.09 million from RM139.23 million a year ago, the highest for the period achieved since 2008.
The growth in net profit resulted in annualised return on equity improving to 26% in 9M 2014 compared with 23% in the last corresponding period. Revenue for the period rose 3.94% to RM375.28 million from RM361.07 million a year ago.
"The growth in net profit is the result of an increase in both trading and non-trading revenue. Despite the softer market globally, we saw higher domestic participation especially in the retail segment which in turn contributed to the higher trading revenue on Bursa Malaysia.
"On the non-trading revenue side, earnings was bolstered by higher listing fees on the back of larger initial public offerings and greater secondary fund raising activities," its CEO Datuk Tajuddin Atan (pix) said in a statement yesterday.
For 9M 2014, the average daily trading value (ADV) for securities market's on-market trades rose by 6% to RM2.1 billion as a result of higher trading participation from retail investors.
Average daily contracts (ADC) for derivatives market grew by 12% to 49,317 contracts largely driven by the increase in the volume of the crude palm oil futures contracts.
On the Islamic front, Bursa Suq Al-Sila (BSAS) recorded a 61% increase in its ADV to RM5.8 billion. Despite an increase in the operating expenses of 6% due to talent building and market development, the cost-to-income ratio was at 46%.
For the third quarter ended Sept 30, 2014 (Q3), net profit rose 14.89% to RM53.09 million from RM46.21 million a year ago while revenue rose 7.21% to RM128.96 million from RM120.28 million a year ago.
The ADV for securities market's on-market trades was up by 7% at RM2.2 billion while ADC traded for the derivatives market increased 23% to 54,019 contracts. On the Islamic market front, the ADV of BSAS increased to RM7.2 billion.
"On our part, there are several initiatives which we will roll out in the remaining quarter of 2014, amongst which will see us continue building the depth and diversity of our offerings as well as our retail outreach programmes both locally and in Asean. We are also on track to rolling out our Environmental, Social and Governance Index (ESG) by this year," said Tajuddin.