Bursa Malaysia Bhd registered a Profit After Tax and Minority Interest of RM122.0 million for the first half ended 30 June 2018 (“1H2018”), an increase of 5.0% from RM116.2 million reported in the previous first half ended 30 June 2017 (“1H2017”).
The growth in PATAMI is primarily due to higher operating revenue of RM279.1 million, a 3.6% increase from the previous corresponding half year. This is Bursa Malaysia’s highest half year operating revenue since its listing in 2005.
Earnings per share for 1H2018 rose to 15.1 sen from 14.4 sen in the previous corresponding half year (after adjusting for the effects of the bonus issue). Both cost-to-income ratio and annualised return on equity (“ROE”) also saw improvements by 2 percentage points respectively.
The Board of Directors has approved a first interim dividend of 14.0 sen per share and a special dividend of 8.0 sen per share for the financial year ending 31 December 2018, amounting to approximately RM177.6 million which is payable on 29 August 2018.
Bursa Malaysia Chief Executive Officer, Datuk Seri Tajuddin Atan said, “Notwithstanding the various global and local events which have impacted emerging markets across the globe, Bursa Malaysia has delivered a commendable performance, achieving its highest ever half-year operating revenue, and highest recorded Average Daily Trading Value (“ADV”) for Securities Market’s On-Market Trades (“OMT”) of RM2.7 billion, since listing in 2005. These results reflect our active efforts of injecting initiatives into the capital market to further stimulate long-term interest and enhance vibrancy.”
For the half-year under review, Securities Market trading revenue grew by 5.6% to RM146.5 million from RM138.8 million in the previous corresponding half year. This was driven by higher ADV for OMT, which grew by 9.0% compared to 1H2017. Non-trading revenue increased by 5.1% to RM86.4 million from RM82.2 million in the previous corresponding half year, contributed by higher listing and issuer services fees and depository services fees.
Derivatives Market trading revenue declined by 4.8% to RM38.7 million in 1H2018 from RM40.7 million in 1H2017, due to lower number of derivatives contracts traded. Average Daily Contracts (“ADC”) for the Derivatives Market in 1H2018 was 54,794 compared to 59,818 in 1H2017, representing a decrease of 8.4%. As for the Islamic Capital Market, Bursa Suq Al-Sila’ (“BSAS”) trading revenue decreased by 4.6% to RM7.4 million compared to the previous corresponding half year mainly due to a volume-based pricing mechanism introduced in December 2016. For the second quarter ended 30 June 2018 (“2Q2018”), Bursa Malaysia’s PATAMI decreased by 2.2% to RM58.2 million compared to the previous corresponding quarter ended 30 June 2017 (“2Q2017”), while operating revenue decreased marginally by 0.4% to RM134.3 million. The ADV for Securities Market’s OMT increased by 4.2% to RM2.7 billion while ADC traded on the Derivatives Market decreased by 3.3% to 55,594 contracts in 2Q2018. On the Islamic Capital Market front, the ADV for BSAS increased by 7.5% to RM20.2 billion in 2Q2018.
Datuk Seri Tajuddin added, “As we move forward in a new Malaysia, I am confident that on the back of strong economic fundamentals and the new government’s approach towards strengthening transparency and accountability as well as the principles of good public governance, the Malaysian capital market will continue to remain resilient. Given time and with greater clarity, the new policies and governance reforms will drive confidence amongst investors and businesses in the country’s economy and provide the Exchange with new growth opportunities for the future.”