Bursa Malaysia Registers Profit After Tax And Minority Interest (PATAMI) OF RM145.1 Million For 9 Months Results Ended 30 September 2014

Bursa Malaysia Berhad (“Bursa Malaysia”) operating revenue was up by 5 percent to RM351.6 million for its nine months ended 30 September 2014 (“9M2014”) compared to the last corresponding period. For 9M2014 Bursa Malaysia recorded the highest PATAMI of RM145.1 million for the same period since 2008. As a result, the annualised return on equity improved to 26 percent in 9M2014 compared to 23 percent in the last corresponding period.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said, “The growth in PATAMI is the result of an increase in both trading and non-trading revenue. Despite the softer market globally, we saw higher domestic participation especially in the retail segment[1] which in turn contributed to the higher trading revenue on Bursa Malaysia. On the non-trading revenue side, earnings was bolstered by higher listing fees on the back of larger Initial Public Offerings[2] and greater secondary fund[3] raising activities.”

He continued, “2014 has been a year in which we have as an Exchange, focused on building our retail outreach efforts and programmes. From the beginning of the year we have launched several initiatives to target the generation-Y and this is a focus that we will continue in the last quarter of 2014. In addition to our outreach programmes, we have also been working hard to broaden our offerings across all three markets. From the addition of our sixth ETF in March to the introduction of the USD Derivatives Refined Palm Olein Futures Contract (FPOL) in June and the release of the third tranche of Exchange Traded Bonds Sukuk (ETBS) in August, we have also broadened the list of allowable securities under our Restricted Short Selling and Securities Borrowing and Lending (RSS/SBL) framework, raising the number of allowable securities from 171 to 218 in the same month.”

For the period under review, the average daily trading value (“ADV”) for securities market’s on-market trades rose by 6 percent to RM2.1 billion as a result of higher trading participation from retail investors. Average daily contracts (“ADC”) for derivatives market grew by 12 percent to 49,317 contracts largely driven by the increase in the volume of the crude palm oil futures (“FCPO”) contracts. On the Islamic front, Bursa Suq Al-Sila (“BSAS”) recorded a 61 percent increase in its ADV to RM5.8 billion. Despite an increase in the operating expenses of 6 percent due to talent building and market development, the cost-to-income ratio was at 46 percent.

Bursa Malaysia recorded a PATAMI of RM53.1 million for the third quarter of 2014 (“3Q2014”), up 13 percent compared to the preceding quarter ended 30 June 2014 (“2Q2014”) while its operating revenue at RM121 million was up by 5 percent compared to 2Q2014. The ADV for securities market’s on-market trades was up by 7 percent at RM2.2 billion while ADC traded for the derivatives market increased 23 percent to 54,019 contracts. On the Islamic market front, the ADV of BSAS increased to RM7.2 billion.

Dato’ Tajuddin concluded, “On our part, there are several initiatives which we will roll out in the remaining quarter of 2014, amongst which will see us continue building the depth and diversity of our offerings as well as our retail outreach programmes both locally and in ASEAN. We are also on track to rolling out our Environmental, Social and Governance Index (ESG) by this year.”

Key Financial & Market Highlights (9M 2014 vs 9M 2013)

• Annualised return on equity at 26%, improved by 3 percentage points
• Earnings per share at 27.2 sen, up by 4%
• Operating revenue at RM351.6 million, up 5%
• Operating expenses at RM172.9 million, up 6%
• Cost-to-Income ratio at 46%
• Average daily trading value for securities market’s on-market trades at RM2.1 billion, up 6%
• Market capitalisation at 30 September 2014 at RM1.8 trillion, up 10%
• Velocity at 30%, down by 2 percentage points
• Average daily contracts traded for derivatives market at 49,317 contracts, up 12%