The Kenanga Investment Bank Bhd Group recorded net income of RM113.8 million in the first quarter ended 31 March 2017, a 7.9% increase from RM105.5 million in 1Q16, and 17% increase relative to the quarter before.
The higher net income was largely contributed by its stockbroking arm which registered improved brokerage income due to higher value traded on Bursa Malaysia Securities Berhad. Profit before tax (PBT) came in at RM5.5 million for 1Q17, 68% higher relative to previous quarter.
This was mainly driven by higher brokerage fee income and lower overheads, offset by share of loss from an associate and a joint venture company. PBT from the same quarter last year (1Q16) was higher at RM11.7 million as it had included trading gain of RM5 million from the disposal of Available For Sale investments.
On the back of higher Bursa volumes to date, as well as the expected further cost savings from relocation to its corporate building purchased in 2016, the Group remains cautiously optimistic that it will improve its overall 2017 financial performance compared to 2016.