by HARIZAH KAMEL/ pic credit: kenanga.com.my
KENANGA Investment Bank Bhd’s (Kenanga IB) net profit for the second quarter ended June 30, 2020 (2Q20), soared 265.5% to RM20.47 million from RM5.6 million a year ago, buoyed by a surge in retail trading amid pandemic-driven demand for healthcare stocks.
Revenue increased 24% to RM209.74 million from RM169.05 million the year prior, while net income jumped 46% to RM170.12 million from RM116.48 million last year.
This was mainly contributed by increased brokerage fees, trading and investment income, and management fee income.
The group also recorded a share of profits from its joint-venture company, Rakuten Trade Sdn Bhd, for the first time since its inception, it said in an exchange filing yesterday.
Rakuten Trade registered over 60,000 new traders within the first six months this year to cross the 100,000 mark, charting record volumes traded in its wake.
Recent market volatility has catalysed a surge in participation from local retail investors, Kenanga IB said.
“The last few months have truly validated our digital strategy which we 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-tracking our pursuit of innovation to further transform operational effectiveness, elevate customer experience and to provide a robust all-encompassing investing ecosystem for Malaysian investors,” Kenanga IB group MD Datuk Chay Wai Leong said in a statement yesterday.
The group is “well positioned” to end the year on a positive note, he added.