Bursa Malaysia Delivers Highest Profit After Tax And Minority Interest (Patami) Since 2008 - Posts 15% Jump In Its Patami And Proposes 16 Sen Final Dividend

Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) delivered the highest PATAMI since 2008 at RM173.1 million, up by 15% for the financial year ended 31 December 2013 (“FY2013”). Cost to income ratio improved from 49% in 2012 to 48% in 2013 while the return on equity recorded an increase from 18% in 2012 to 21% to 2013. The Exchange’s financials has been growing from strength to strength on the back of initiatives targeted at improving technology infrastructure, enhancing market micro structure, expanding product range as well as benefits derived from outreach programmes across all three markets.
 
Dato’ Tajuddin Atan added, “We have stepped up the pace of the execution of projects and have significantly completed the refresh of our core systems. Among our key milestones is the delivery of our refreshed trading engine, the Bursa Trade Securities 2 (“BTS2”). We rolled out initiatives targeted at enhancing market micro structure such as enhancing the Regulated Short Selling / Securities Borrowing and Lending framework, introducing green lane policy for the Participating Organisations, strengthening the Participating Organisation framework as well as the introduction of efficiency measures such as eRights and eStatement services. We also expanded our product range with business trusts, stapled securities, gold futures and exchange traded bonds and sukuk.”

Bursa Malaysia’s operating revenue was up by 13% to RM439.8 million in FY2013 boosted by double digit growth in trades from the securities and derivatives market. For the year under review, the securities market’s average daily trading value (“ADV”) grew by 28% to RM2.14 billion as a result of higher domestic institution and foreign participation as well as increased retail participation. Derivatives market’s average daily contracts (“ADC”) traded grew by 10% which saw the ADC increase from 39,387 contracts to 43,490 contracts as our outreach to High Frequency Traders bore fruit with foreign trades primarily contributing to the growth in ADC. Bursa Suq Al-Sila (BSAS) recorded a 69% increase in its average daily trading value to RM3.9 billion for the year under review from RM2.3 billion in the corresponding year due to the effectiveness of our consistent engagement and outreach activities.”

The Exchange’s operating expenses increased by 10% driven by higher investments in human capital and enhancement of our core technology systems. 

Bursa Malaysia’s fourth quarter (“4Q2013”) PATAMI of RM33.8 million was down 5% compared to the corresponding quarter last year. Its operating revenue increased by 10% from RM94.5 million to RM103.9 million in 4Q2013 driven by a higher revenue in the securities market. The ADV for securities market increased by 54% to RM2.3 billion while ADC traded for the derivatives market was down 5% to 41,535 contracts. On the Islamic market front, the ADV of BSAS increased by 56% to RM4.7 billion. 

Bursa Malaysia proposed a final dividend of 16 sen per share, bringing the full year 2013 total dividend to 52 sen per share. The proposed final dividend will be presented to shareholders during the Company’s 37th Annual General Meeting in March 2014 for their approval. 

Dato’ Tajuddin said, “As part of the efforts to build for the future, the Exchange has taken upon itself to build an eCommunity as a catalyst to inculcate the trading and investing mindset amongst Malaysians. We will continue our efforts in offering more tradable alternatives and improving market structure and framework. All these will support our initiatives in expanding our regional presence and in taking us to a step closer to being ASEAN’s multinational marketplace.” 

The financial results for the full year 2013 are available on Bursa Malaysia’s website