Bursa 3Q net profit down 37.3% to RM

by ANIS HAZIM / graphic by TMR

BURSA Malaysia’s net profit for the third quarter ended Sept 30, 2022 (3Q22) fell 37.3% to RM50.12 million from RM79.94 million a year ago, mainly due lower profit earned in the quarter under review.

Earnings per share dropped to 6.2 sen per share in 3Q22 from 9.9 sen per share in the same quarter last year.

The regulator’s revenue also fell 19.32% to RM140.35 million from RM173.96 million last year.

For the cumulative nine months ended Sept 30, 2022 (9M22), its net profit declined by 38.83% to RM177.56 million from RM290.3 million previously, while revenue fell 31.64% to RM457.54 million versus RM602.35 million.

Bursa’s trading revenue decreased by 40.5% to RM55.8 million in 3Q22 against RM93.8 million in the same period last year, mainly due to lower average daily trading value for on-market trades and direct business trades.

Its derivatives market’s profit rose 61.6% to RM17.8 million in 3Q22 from RM11 million in previously, mainly due to higher operating revenue in 3Q22.

“As global volatility and the higher interest rate environment continue to challenge our securities market business, improvements in the performance of the derivatives market as well as market data businesses have helped contribute to our profit numbers during this financial period,” said Bursa CEO Datuk Muhammad Umar Swift (picture) in a statement accompanying its results.

He said the securities market business, improvements in the performance of the derivatives market, as well as market data businesses have helped contribute to its profit numbers during this financial period.

Nonetheless, he said that Bursa will continue to ensure that the exchange innovates and remains agile to generate increased volumes.

“Thus, contributing to higher revenue streams in all segments of our business in this investment climate,” he added.

Bursa’s share price closed 0.78% or five sen higher at RM6.45 today, valuing the regulator at RM5.22 billion.