Bursa Malaysia Announces Rm177.6 Million Profit After Tax And Zakat For The Nine Months Ended 30 September 2022

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) recorded a Profit After Tax and Zakat (“PAT”) of RM177.6 million for the nine-month financial period ended 30 September 2022 (“9M2022”), a 38.8% decrease from RM290.3 million reported in the previous corresponding period ended 30 September 2021 (“9M2021”). The decrease in PAT is due to lower operating revenue by 24.6% to RM445.2 million from RM590.0 million in 9M2021, primarily caused by a decline in securities trading revenue. Meanwhile, total operating expenses saw a 0.7% marginal increase to RM214.7 million in 9M2022, compared to RM213.2 million in 9M2021.

“As global volatility and the higher interest rate environment continue to challenge our securities market business, improvements in the performance of the derivatives market as well as market data businesses have helped contribute to our profit numbers during this financial period,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia. “We will continue to ensure that the Exchange innovates and remains agile to generate increased volumes thus contributing to higher revenue streams in all segments of our business in this investment climate.” 

For the period under review, the Securities Market registered a trading revenue of RM203.0 million, a decrease by 43.6% compared to RM359.9 million in 9M2021. This is due to lower Average Daily Trading Value (“ADV”) for Securities Market’s On-Market Trades (“OMT”) and Direct Business Trades (“DBT”) in 9M2022 of RM2.2 billion against RM4.0 billion in 9M2021. Trading velocity in 9M2022 was lower by 24 percentage points to 30% compared to 54% in 9M2021. On new listings, funds raised through Initial Public Offerings (“IPOs”) in 9M2022 totalled RM2.8 billion, higher than the RM2.3 billion raised in 9M2021. 

Total derivatives trading revenue increased by 11.5% to RM73.4 million in 9M2022 from RM65.8 million in 9M2021, contributed by higher collateral management income as well as higher number of Crude Palm Oil Futures (“FCPO”) and FTSE Bursa Malaysia KLCI Futures (“FKLI”). Average Daily Contacts (“ADC”) in 9M2022 rose 2.2% with 78,540 contracts, compared to 76,836 contracts in 9M2021.

As for the Islamic Markets, higher trading activity in Bursa Suq Al-Sila’ (“BSAS”) resulted in an increase of trading revenue by 17.3% to RM11.8 million in 9M2022, from RM10.1 million in 9M2021. Meanwhile, the market data business closed 9M2022 with a total revenue of RM45.8 million, a 15.9% increase compared to RM39.5 million in 9M2021, driven by higher number of subscribers.

Based on Bank Negara Malaysia’s report that the Malaysian economy grew by 8.9% in 2Q2022, factors such as improving labour conditions, reopening of international borders, recovery in tourism-related sectors, and increase in investment activities will continue to support this growth trajectory.

Said Datuk Muhamad Umar Swift, “Trading volume is facing strong global headwinds, but the Exchange continues to actively engage with existing and potential market participants to highlight the market’s value and appeal.”

“To enhance the attractiveness of existing listed companies, the Exchange has launched initiatives such as the Public Listed Companies Transformation Programme, the Bursa Research Incentive Scheme, Investor Relations & Public Relations Incentive Programme and the Bursa Digital Research. To entice domestic and foreign derivatives participants, other initiatives include further extension of the after-hours (T+1) derivatives trading session (“Night Trading”).”

“Ensuring a robust Islamic Capital Market remains one of the Exchange’s main agendas, which is in line with our Sustainable and Responsible Investment (“SRI”) and Environmental 

Social Governance (“ESG”) agenda. The Exchange continues to develop new Shariah-compliant products, such as the upcoming Shariah-compliant Voluntary Carbon Market and the Bursa Gold Dinar,” concluded Datuk Muhamad Umar Swift.

The financial results for the period ending 9M2022 are available on Bursa Malaysia’s website at www.bursamalaysia.com.