Bursa Malaysia Announces Rm172.2 Million Profit After Tax And Minority Interest For The Nine Months Ended 30 September 2018

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) recorded a Profit After Tax and Minority Interest (“PATAMI”) of RM172.2 million for the nine-month financial period ended 30 September 2018 (“9M2018”), a 2.6% increase from the RM167.8 million reported in the previous corresponding period ended 30 September 2017 (“9M2017”). The growth in PATAMI is primarily due to higher operating revenue of RM402.3 million, which saw an increase of 2.6% from the previous corresponding period.

Earnings per share for 9M2018 increased to 21.3 sen from 20.8 sen in 9M2017. Cost-to-income ratio remained stable at 44% while annualised return on equity (“ROE”) was up by 1 percentage point.

Bursa Malaysia Chief Executive Officer, Datuk Seri Tajuddin Atan said, “Despite major volatility and declines in emerging market equities against the backdrop of a challenging global environment in 2018, Bursa Malaysia’s sustainable growth initiatives implemented over the years continue to show progress, raising our standards and strengthening our performance to achieve our highest ever nine-month operating revenue, and highest recorded nine-month Average Daily Trading Value (“ADV”) for Securities Market’s On-Market Trades (“OMT”) of RM2.6 billion since listing in 2005. These results are a testament to our ongoing commitment to deliver more opportunities supporting a vibrant and conducive capital market ecosystem for all market participants.”

For the nine-month financial period under review, Securities Market registered trading revenue of RM207.7 million compared to RM195.0 million in the previous corresponding period, marking a revenue growth of 6.5% driven by higher ADV for OMT in 9M18, which grew by 10.5% year-over-year. Non-trading revenue increased by 1.0% to RM126.2 million from RM124.9 million in the previous corresponding period, spurred by higher market data revenue as a result of an increase in the number of subscribers.

Derivatives Market trading revenue decreased by 4.8% to RM57.6 million in 9M2018 from RM60.5 million in 9M2017, mainly due to lower number of crude palm oil futures contracts traded and guarantee fees earned as well as higher market incentives incurred in 9M18. Average Daily Contracts (“ADC”) for the Derivatives Market saw a decrease of 5.2%, with 55,779 contracts in 9M2018 compared to 58,817 contracts in 9M2017. As for the Islamic Capital Market, Bursa Suq Al-Sila’ (“BSAS”) registered trading revenue of RM10.8 million in 9M2018, representing a decline of 7.4% compared to 9M2017.

For the third quarter ended 30 September 2018 (“3Q2018”), operating revenue increased marginally by 0.4% to RM123.2 million but was offset by a 2.8% increase in operating expenses to RM60.7 million, resulting in a 2.7% decline in PATAMI to RM50.2 million compared to the previous corresponding quarter ended 30 September 2017. The ADV for Securities Market’s OMT grew by 14.1% to RM2.2 billion while ADC traded on the Derivatives Market was up by 1.6% to 57,750 contracts in 3Q2018. On the Islamic Capital Market front, the ADV for BSAS rose by 5.9% to RM21.6 billion in 3Q2018.

Datuk Seri Tajuddin added, “We are confident the government’s emphasis on fiscal and governance reforms as outlined in the 11th Malaysia Plan mid-term review bodes well in the long term for strengthening investor confidence.  On Bursa Malaysia’s part, we will continue our efforts to digitalise services, liberalise the rules framework and broaden the investor base to enhance the breadth and depth of the ecosystem – all part of the Exchange’s strategy towards becoming a leading, responsible and globally connected ASEAN Marketplace.”

The financial results for the nine-month financial period ended 30 September 2018 are available on Bursa Malaysia’s website at www.bursamalaysia.com