Bursa Malaysia Announces RM121.4 Million Profit After Tax For The First Quarter Of 2021

Key Financial & Market Highlights
(1Q2021 vs 1Q2020)

• Profit After Tax at RM121.4 million, increased by 87.5%
• Annualised Return On Equity at 58%, increased by 23 percentage points
• Basic earnings per share at 15.0 sen, increased by 7.0 sen
• Operating revenue at RM228.0 million, increased by 56.7%
• Operating expenses at RM69.4 million, increased by 9.2%
• Cost-to-income ratio at 30%, decreased by 12 percentage points
• Average daily trading value for Securities Market’s on-market trades at RM5.1 billion, increased by 100.8%
• Market capitalisation as of 31 March 2021 at RM1.8 trillion, increased by 31.2%
• Securities Market velocity at 70%, increased by 31 percentage points
• Average daily contracts traded for Derivatives Market at 80,338 contracts, decreased by 6.1%
• Average daily trading value for BSAS at RM35.2 billion, increased by 15.9%

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) recorded a Profit After Tax (“PAT”) of RM121.4 million for the first quarter ended 31 March 2021 (“1Q2021”), an 87.5% increase from RM64.7 million reported in the previous corresponding quarter ended 31 March 2020 (“1Q2020”). The increase in PAT is primarily due to higher operating revenue by 56.7% to RM228.0 million from 1Q2020. Total operating expenses in 1Q2021 increased by 9.2% to RM69.4 million from RM63.5 million in 1Q2020.

Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia said, “Building on the momentum from last year, we have started the year on a firm footing. Average Daily Trading Value (“ADV”) for Securities Market’s On-Market Trades (“OMT”) continues to grow, increasing by 100.8% to RM5.1 billion from RM2.5 billion in 1Q2020. Domestic retail investors continue to play a significant role in our marketplace, sustained by the easy access to the stock market and low-interest-rate environment. We have seen a resilient performance in our markets in 1Q2021 and expect it to continue to attract investments and trading in 2021.”  

For the current quarter under review, Securities Market registered trading revenue of RM150.9 million compared to RM78.1 million in 1Q2020, increased by 93.3% due to higher ADV for OMT in 1Q2021. The higher effective clearing fee rate in 1Q2021 also contributed to the increase in trading revenue but this was partially offset by the lower number of trading days. Trading velocity in 1Q2021 was higher by 31 percentage points to 70% compared to 39% in 1Q2020.

Derivatives Market trading revenue decreased by 15.7% to RM22.6 million in 1Q2021 from RM26.7 million in 1Q2020, mainly due to lower number of contracts traded for Crude Palm Oil Futures (“FCPO”) and FTSE Bursa Malaysia KLCI Futures (“FKLI”), as well as the lower number of trading days in the current quarter under review. Average Daily Contracts (“ADC”) saw a decrease of 6.1%, with 80,338 contracts in 1Q2021 compared to 85,578 contracts in 1Q2020.

As for the Islamic Markets, the higher trading activity in Bursa Suq Al-Sila’ (“BSAS”) resulted in the increase in the trading revenue by 16.0% to RM3.4 million in 1Q2021 from RM2.9 million in 1Q2020. The Exchange will continue to focus on developing and growing the Islamic Markets by attracting new participants to trade on the BSAS platform, promoting Shariah-compliant stocks and also introducing new Islamic products and services such as Waqf ETF.

Datuk Umar added, “While Malaysia is well-positioned for an economic recovery in 2021, the pace and extent of the recovery remains uncertain. In consideration of the continuing impact of COVID-19 this year, the Exchange will continue to support market participants by providing facilitative ecosystem initiatives alongside relief measures to ease financial burden and provide greater flexibility that can aid and support them through this challenging period. Our 3-year (2021 – 2023) Strategic Roadmap has been formulated to ensure that the Exchange remains competitive and continues to enhance value for our stakeholders.”

The financial results for 1Q2021 are available on Bursa Malaysia’s website at www.bursamalaysia.com