BMB Best Financial Results Since 2007
“Bursa Malaysia’s solid performance in 1H13 is due to the stronger performance from our three markets (Securities, Derivatives and Islamic). All three markets recorded high double digit growth in respective traded volumes as a result of increased foreign participation and retail participation. This performance is a reflection of the local and global interest and confidence in Malaysia’s strong fundamentals. Bursa Malaysia has not seen such momentum in the past six years,” said Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia Berhad.
For the 1H13, the Exchange delivered a profit after tax and minority interest (“PATAMI”) of RM93.0 million, a 19% spike compared to the corresponding period last year. The annualised 1H13 net return on average equity (“ROE”) increased by 14% to 21% whilst the earnings per share (“EPS”) moved up 19% to 17.5 sen. Cost-to-income ratio improved, marking a 7% drop to 45%.
Total operating revenue was up 13% to RM223.9 million attributable largely to an increase in the securities trading revenue on the back of a more buoyant market post Malaysia’s 13th General Elections on 5 May 2013.
Bursa Malaysia’s operating expenses remained fairly stable at RM108.0 million compared to RM103.9 million, up 4%, primarily due to a salary review and adjustment as the Exchange introduced talent development and retention initiatives as part of its continued efforts to remain competitive in attracting and retaining talent.
For the period under review, revenue from the securities market registered strong double digit performance of 17% bringing the current total to RM109.0 million. This improved performance is derived from a higher average daily trading value (“ADV”) of RM2.06 billion, an increase of 19% from RM1.74 billion for the corresponding period under review.
The derivatives market’s average daily contracts (“ADC”) traded expanded by 21% which saw the ADC increase from 35,845 contracts to 43,358 contracts as a result of increased foreign participation. On the Islamic market front, the ADV of Bursa Suq-Al Sila was up 88% supported by active trading by new members.
Bursa’s Quarter-on-Quarter Results – comparison to corresponding 2Q12
Bursa Malaysia registered a record performance in the second quarter of 2013, the best quarter financial results since the 2007 rally. Operating revenue increased 26% from RM96.7 million to RM122.2 million due to heightened activities in all three markets. The ADV for the securities market increased by 57% to RM2.39 billion while ADC traded for the derivatives market increased 3% to 41,673 contracts. On the Islamic market front, the ADV of Bursa Suq-Al Sila increased by 57% to RM3.4 billion.
Dato’ Tajuddin said, “In the coming months, we will be focusing on value extraction in order to take advantage of all the initiatives and projects which we have worked hard to complete. We will continue to build for the future to further strengthen our breadth and depth of the markets. Amongst our focus areas will be the Regulated Short Selling and Securities Borrowing and Lending (“RSS & SBL”) which is necessary for Malaysia to achieve developed market status. On the retail front, we will be actively engaging our local retail investors through initiatives which will be announced in the fourth quarter this year.”