Bursa Malaysia post lower net profit in 3Q21

by ANIS HAZIM / pic by MUHD AMIN NAHARUL

BURSA Malaysia Bhd reported a dip in net profit for the third quarter ended Sept 30, 2021 (3Q21) to RM79.94 million from RM121.94 million previously, mainly due to lower operating revenue in the current quarter compared to last year.

Revenue for the current quarter fell to RM173.98 million compared to RM237.74 million last year.

Its earnings per share (EPS) dipped 9.9 sen versus 15.1 sen.

Bursa has not declared any dividend for the current quarter under review.

Its Securities Market segment profit for the 3Q21 also dropped by 34.7% to RM117.7 million, compared to RM180.2 million last year mainly due to lower operating revenue in 3Q2021.

Similar to the Securities Market, Bursa’s Derivatives Market has decreased 12.4% to RM11 million from RM12.6 million last year due to lower operating revenue in the current quarter.

However, the group’s net profit for the nine months of 2021 (9M21) showed increases of 6.4% to RM290.3 million from RM272.9 million in the previous year on higher operating revenue.

Its revenue for the 9M21 rose 6% to RM602.4 million compared to RM568.3 million last year.

The group EPS also increased to 35.9 sen against 33.7 sen.

Meanwhile, the Securities Market registered trading revenue of RM359.9 million in 9M21 compared to RM349.2 million in the previous corresponding period.

Its non-trading revenue from listing and issuer services also recorded an increase to RM52.3 million in 9M21 compared to RM40.1 million previously.

Other revenue streams that contributed to the growth include depository services, market data and member services and connectivity.

In a separate statement, Bursa CEO Datuk Muhamad Umar Swift said that the group will continue to enhance its platform and initiatives to support the investing community in growing their wealth and managing risks against volatilities.

“Our recently launched Investor Relations and Public Relations Incentive Programme is expected to sustain the retail participation and attract the institutional investors through more active investor relations engagements,” he said.

Bursa also introduced its latest addition to the Bursa Anywhere mobile application features called the electronic General Offer (eGO), which will provide convenience to retail investors.

Despite the challenges, he views that the group is well-positioned to continue developing the marketplace and expand its ecosystem through various product offerings.