Bursa net profit down 2.2% in Q2

PETALING JAYA: Bursa Malaysia Bhd’s net profit decreased 2.2% to RM58.2 million in the second quarter (Q2) ended June 30, 2018, from RM59.5 million in the previous corresponding quarter.
Revenue for the quarter declined 1.48% to RM141 million, compared with RM142.67 million in the same period a year ago.
For the first half of 2018 (1H2018), its net profit increased 5% to RM122 million against RM116.17 million in the previous year, while revenue grew 2.1% to RM291.3 million from RM285.4 million previously.
The stock exchange said in a statement that the higher net profit was primarily due to higher operating revenue of RM279.1 million, a 3.6% increase from the previous corresponding half year.
“This is Bursa Malaysia’s highest half year operating revenue since its listing in 2005,” it said.
The bourse approved a first interim dividend of 14 sen per share and a special dividend of 8 sen per share for the financial year ending Dec 31, 2018, payable on Aug 29, 2018.
For 1H2018, its earnings per share rose to 15.1 sen from 14.4 sen in the previous corresponding half year, after adjusting for the effects of the bonus issue.
Bursa said both of its cost-to-income ratio and annualised return on equity (ROE) also saw improvements by two percentage points respectively.
“Notwithstanding the various global and local events which have impacted emerging markets across the globe, Bursa Malaysia has delivered a commendable performance, achieving its highest ever half year
operating revenue, and highest recorded average daily trading value (ADV) for securities market’s on-market trades (OMT) of RM2.7 billion, since listing in 2005,” its CEO Datuk Seri Tajuddin Atan said.
“These results reflect our active efforts of injecting initiatives into the capital market to further stimulate long-term interest and enhance vibrancy,” he added.
For the half-year under review, Bursa said securities market trading revenue grew by 5.6% to RM146.5 million from RM138.8 million in the previous corresponding half year, driven by higher ADV for OMT, which grew by 9% compared to 1H2017.
It said non-trading revenue increased by 5.1% to RM86.4 million from RM82.2 million in the previous corresponding half year, contributed by higher listing and issuer services fees and depository services fees.
However, it said derivatives market trading revenue declined by 4.8% to RM38.7 million in 1H2018 from RM40.7 million in 1H2017, due to lower number of derivatives contracts traded.
Nevertheless, Tajuddin said he is confident that the Malaysian capital market will continue to remain resilient on the back of strong economic fundamentals and the new government’s approach towards strengthening transparency and accountability as well as the principles of good public governance.
"Given time and with greater clarity, the new policies and governance reforms will drive confidence amongst investors and businesses in the country’s economy and provide the exchange with new growth opportunities for the future," he added.