Kenanga Investment Bank posted its second quarter financial results (“2Q20”) profit before tax of RM25.9 million, an increase of three folds from same period last year mainly contributed by increased brokerage fees, trading and investment income as well as management fee income.
It also recorded a share of profits from its joint venture company, Rakuten Trade and a reversal of credit loss provision.
The recent market volatility has catalysed a surge in participation from local retail investors, fuelling record-high trading activities in the equities market. Trading volume on Bursa Malaysia was reportedly to have swelled to a daily record of 26.65 billion, with the number of shares traded standing at RM9.05 billion – highest in the region.
According to Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad, the last few months has truly validated their digital strategy which they embarked on a few years ago.
“Digitalisation has enabled us to support the recent resurgence in retail participation, and to capitalise on the bullish stock market sentiments. We are committed to fast-track our pursuit of innovation to further transform operational effectiveness, elevate customer experience and to provide a robust all-encompassing investing ecosystem for Malaysian investors,” Chay commented.
He further mentioned that with their prudent risk management practices and strong foothold in the retail market, they are well positioned to end the year on a positive note.
One of the Group’s recent digital successes include its joint venture, Rakuten Trade, which registered over 60,000 new traders within the first 6 months this year to cross the 100,000 mark, charting record volumes traded in its wake.
Additionally, Kenanga has also recently received approval in principal from the Securities Commission Malaysia to roll-out a robo-advisory platform.
Underlining its commitment to pursue innovation, the Group recently announced a partnership with award-winning digital supply chain financing company, Bay Group Holdings Sdn Bhd (CapBay), in a bid to transform the traditional factoring market in Malaysia.
The digital supply chain financing solution will grant quicker access to traditional and peer-to-peer financing, thus accelerating access to working capital financing for Malaysian entrepreneurs.