Kenanga reports RM6.7mil profit in 3Q25

KUALA LUMPUR: Kenanga Investment Bank Bhd said it continues to navigate global uncertainties while identifying emerging opportunities, supported by resilient domestic demand, strong private consumption and a rebound in industrial activity.

Group managing director Datuk Chay Wai Leong said the Malaysian economy remains resilient, supported by steady domestic demand, strong private consumption and a rebound in industrial activity.

“While global uncertainties and geopolitical tensions continue to pose challenges, we are mindful of emerging opportunities and focused on executing our strategic initiatives.

“Through disciplined operations and prudent management, Kenanga continues to be well-positioned to create sustainable value for our clients, shareholders, and stakeholders,” Chay said in a statement.

In the third quarter ended Sept 30 (3Q25), Kenanga’s earnings more than halved to RM6.7mil, or 0.92 sen per share, compared with RM14.6mil in 3Q24, as the latter reflected an adjustment for overprovision of tax in the prior year.

This brought its nine-month profit 60% lower to RM18.7mil, or 2.57 sen per share.

Quarterly revenue fell 9.4% to RM208.2mil, while revenue for the nine months stood at RM621.3mil, down 8.3% year on year.

Kenanga said the lower revenue was due to a lower brokerage and management fee income, which outweighed higher net interest and futures commission income.

The group’s investment banking division recorded revenue growth of 3.9% to RM192.0mil and a 205.9% surge in profit before tax (PBT) to RM15.9mil for 9M25.

It said the stronger performance was driven by higher net interest income, as well as improved trading and investment income.

The listed derivatives business maintained its strong growth momentum, posting revenue of RM22.6mil and PBT of RM7.2mil for 9M25, up 15.1% and 36.7% year-on-year.

The robust performance was driven by higher trading commissions amid a surge in market activity and increased interest income.

Kenanag’s asset and wealth management business posted revenue of RM187.2mil for 9M25, unchanged from a year earlier. Its PBT, however, fell to RM14.5mil from RM19.7mil in 9M24 due to strategic marketing investments and higher operating expenses to support future growth.

The stockbroking business recorded revenue of RM221.3mil in 9M25, down from RM284.2mil in 9M24, mainly due to lower brokerage and trading and investment income. This was partly offset by higher interest income and lower overheads.

As a result, the division posted a loss before tax of RM3.1mil for 9M25, compared with a PBT of RM11.0mil a year earlier.