Bursa Malaysia Announces RM75.0 Million Profit After Tax, Zakat And Minority Interest For The First Quarter Of 2024

Key Financial & Market Highlights (1Q2024 versus 1Q2023)

• Profit After Tax, Zakat and Minority Interest at RM75.0 million, increased by 33.6%
• Annualised Return on Equity at 37%, increased by 8 percentage points
• Basic earnings per share at 9.3 sen, increased by 2.4 sen
• Operating revenue at RM180.7 million, increased by 19.9%
• Operating expenses at RM87.1 million, increased by 8.6%
• Cost-to-income ratio at 47%, decreased by 4 percentage points
• Average daily trading value for Securities Market’s on-market trades at RM2.9 billion, increased by 36.9%
• Market capitalisation as at 31 March 2024 at RM1.9 billion, increased by 11.7%
• Securities Market velocity at 39%, increased by 8 percentage points
• Average daily contracts traded for Derivatives Market at 84,222 contracts, increased by 18.0%
• Average daily trading value for BSAS at RM46.4 billion, decreased by 10.9%

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) posted a Profit After Tax, Zakat and Minority Interest (“PATAMI”) of RM75.0 million for the first quarter ended 31 March 2024 (“1Q2024”), a 33.6% increase compared to RM56.2 million reported in the previous corresponding quarter ended 31 March 2023 (“1Q2023”). The rise in PATAMI was primarily driven by a 23.0% increase in the Securities Market’s operating revenue to RM123.1 million in 1Q2024, from RM100.0 million in 1Q2023. Meanwhile, total operating expenses increased by 8.6% to RM87.1 million in 1Q2024 from RM80.2 million in 1Q2023, mainly attributed to higher staff costs and technology expenses.  

Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia said, “Drawing upon the positive momentum of the past year, we have started the year on a firm footing. The Average Daily Trading Value (“ADV”) for Securities Market’s On-Market Trades (“OMT”) continues to grow, rising by 36.9% to RM2.9 billion from RM2.1 billion in 1Q2023. This increase has substantially contributed to a higher operating revenue this quarter. As a multi-asset exchange, we continue to democratise access and provide more opportunities for all stakeholders. Domestic retail investors remain a key segment in driving our marketplace forward, and the Exchange will continue its outreach efforts and improve market ecosystem through initiatives like MYBURSA and BURSA REACH.”  

For the current quarter under review, trading velocity has also experienced an uptick, rising by 8 percentage points to 39% in 1Q2024 from 31% in 1Q2023. Additionally, listing and issuer services grew by 8.9% to RM16.3 million in 1Q2024 from RM15.0 million in 1Q2023, while depository services witnessed an 18.3% increase to RM15.5 million in 1Q2024 from RM13.1 million in 1Q2023.  

The Derivatives Market’s operating revenue rose by 12.7% to RM31.8 million from RM28.3 million in 1Q2023. This increase was driven primarily by the rise in Average Daily Contracts (“ADC”) in both Crude Palm Oil Futures (“FCPO”) and FTSE Bursa Malaysia KLCI Futures (“FKLI”), which collectively propelled the Derivatives Market’s ADC higher by 18.0% year-on-year to 84,222 contracts in 1Q2024. The growth in ADC led to an 18.2% increase in Derivatives trading revenue, rising to RM25.4 million in 1Q2024 from RM21.5 million in 1Q2023.  

On the Islamic Market front, operating revenue remained stable at RM4.5 million, mirroring the previous corresponding quarter’s performance. Meanwhile, the data business segment demonstrated significant growth, with operating revenue increasing by 21.9% to RM19.0 million from RM15.6 million in 1Q2023.

“While key economic indicators are pointing towards a brighter outlook for the Malaysian economy, the ongoing global and local developments will continue to influence the volatility and performance of the securities and derivatives markets. We have been working closely with other regulators to ensure market efficiency and improved market accessibility and liquidity to support participants during this period,” added Datuk Umar.  

“Bursa Malaysia is well-positioned to continue developing the marketplace and make further progress on our strategic plans. We expect growth momentum in the data business with the Centralised Sustainability Intelligence (“CSI”) Platform which will foster environmental, social and governance transparency, targeted to be launched in June 2024. The recently launched SME X Platform will also contribute to this growth, by connecting the small and medium enterprises to capital providers for fundraising. As for the Islamic Market, we have seen strong participation in the user registrations of the Bursa Gold Dinar app following its launch on 16 January 2024. We will continue our focus on introducing new value- added features and digital marketing efforts to increase our investor base. We also anticipate sustained trading activity within BSAS, supported by ongoing engagements with both local and foreign participants. Our commitment remains steadfast in expanding the array of Shariah-compliant products and solutions, including Islamic social finance offerings, to promote sustainable and responsible investment practices among investors.”

“Barring any unforeseen circumstances, the Exchange is cautiously optimistic in meeting all five headline key performance indicators ("KPIs”)¹ for financial year ending 2024,” Datuk Umar concluded. 

The financial results for 1Q2024 are available on Bursa Malaysia’s website at www.bursamalaysia.com.