Bursa Malaysia Berhad (“Bursa Malaysia”) today announced a net profit of RM80.3 million for the nine month period ended 30 September 2006 – a 22.8% increase over the net profit of RM65.4 million for the corresponding period last year. Bursa Malaysia also declared a gross special dividend of 28 sen per share, in respect of the financial year ending 31 December 2006.
Bursa Malaysia Berhad’s Chief Executive Officer, Yusli Mohamed Yusoff said, “Our positive results were driven by the more buoyant equity market as a result of improved investor sentiment and a fresh interest in the derivatives markets, in particular the CPO, KLI and KLIBOR futures.”
The Group’s net profit attributable to shareholders rose RM17.2 million or 27.6% to RM79.5 million from RM62.3 million last year. The year-on-year improvement was attributed to higher operating revenue of RM186.9 million for the nine months of 2006 from RM148.0 million last year, an increase of 26.3%.
Trading revenue from the equity market increased by 43.4% year-on-year to RM 103.5 million whilst trading revenue from the derivatives market increased by 50.7% year-on-year to RM22.9 million. Total trading value in the equity market increased by 17.0% to RM188.5 billion from RM161.0 billion in the corresponding period last year. Derivatives market also continued to grow with a 47.4% increase in the number of derivatives contracts traded to 2.8 million this year compared to 1.9 million last year.
Operating expenses fell marginally by 1.0% to RM106.7 million. The increase in depreciation and software amortisation expenses were mitigated by decreases in other general administrative expenses.
Retail participation in the equity market has increased to 36% compared to 29% last year. This is attributable to improved investor sentiment. The participation of foreign investors in trading stood at 35% for the nine months of 2006 compared to 37% last year.
Bursa Malaysia also announced a special dividend of 28.00 sen per share less 28% taxation. The special dividend is part of Bursa Malaysia’s capital management plan and is aimed at creating value to shareholders by enabling them to utilise the company’s excess cash for their respective investment needs. The special dividend is also expected to improve the company’s return on equity. Bursa Malaysia had also paid an interim dividend of 12.5 sen per share less 28% taxation in August 2006. This brings the total payout for the year-to-date to 40.5 sen per share.
On the progress of the exchange’s headline KPIs, Yusli said that Bursa Malaysia is on track to meet its annual Return-on-equity (ROE) target of 9.1%, as the annualised ROE for the nine months of 2006 was at 12.0%.
Yusli added that Bursa Malaysia will continue its focus on developing products and services that meet the growing requirements of market participants. “We are confident that the Exchange remains well positioned to capitalise on the opportunities presented by evolving markets. Although the outlook continues to be challenging, we are optimistic that the exchange’s performance for the final quarter will remain resilient,” concluded Yusli.
The presentation of the financial results for the nine month period ended 30 September 2006 is also available on Bursa Malaysia’s website (www.bursamalaysia.com).
| FINANCIAL RESULTS | 3Q06 (Unaudited) | 3Q05 (Restated) | 9 months ended 30.09.2006 (Unaudited) | 9 months ended 30.9.2005 (Restated) |
|---|---|---|---|---|
| RMl'000 | RMl'000 | RMl'000 | RMl'000 | |
| Operating Revenue | 59,051 | 48,379 | 186,874 | 147,968 |
| Other Income | 9,012 | 15,819 | 30,333 | 52,257 |
| Total Revenue | 68,063 | 64,198 | 217,207 | 200,225 |
| Total Operating Expenses | (35,126) | (37,179) | (106,653) | (107,840) |
| Profit from Operations | 32,937 | 27,019 | 110,554 | 92,385 |
| Finance Costs | (153) | (130) | (431) | (206) |
| Profit before Taxation | 32,784 | 26,889 | 110,123 | 92,179 |
| Taxation | (7,681) | (5,653) | (29,800) | (26,797) |
| Net Profit for the Period | 25,103 | 21,236 | 80,323 | 65,382 |
| Attributable to: | ||||
| Equity Holders of the Parent | 25,103 | 19,591 | 79,519 | 62,352 |
| Minority Interests | - | 1,645 | 804 | 3,030 |
| Net Profit for the Period | 25,103 | 21,236 | 80,323 | 65,382 |
Note:
The figures for the comparative period of 2005 have been restated to reflect the prior year adjustment relating to share based payment under Employees’ Share Option Scheme (ESOS).
