Bursa Malaysia Berhad (Bursa Malaysia) today announced a net profit of RM191.1 million for the nine-month period ended 30 September 2007 – a 140% jump compared to RM79.5 million recorded for the corresponding period in the previous year. This strong performance exceeded its annual profit for 2006 which was at RM108.1 million. Bursa Malaysia also declared a gross special dividend of 28 sen per share, in respect of the financial year ending 31 December 2007.
For the third quarter ended 30 September 2007, Bursa Malaysia registered a net profit of RM56.0 million, 123% higher compared to the profit of RM25.1 million recorded in the third quarter of 2006. Operating revenue also increased by 89% to RM111.3 million in the third quarter of this year compared to RM59.1 million in the previous corresponding period.
Bursa Malaysia’s Chief Executive Officer, Dato’ Yusli Mohamed Yusoff said, “We are certainly pleased with our results and this bodes well for our year end results. Despite the recent global market uncertainties our country’s solid fundamentals coupled with continued high interest from investors speak for themselves. The positive growth in results was attributed to the healthy performance in both the equity and derivatives market.” On the Exchange’s future initiatives, Dato’ Yusli said, “For the rest of the year, we will focus on rolling out a number of initiatives across the market which is in line with our aim to improve trading access and efficiency via infrastructure improvement; and bringing quality products to the market.”
This growth in performance is attributed to an active equity market which traded at a daily average trading value (on-market and direct business) of RM2.5 billion for the nine months ended 30 September 2007 compared to RM1.0 billion recorded in the corresponding period last year. The bullish equity market contributed to a strong increase in revenue from the equity market by 131% to RM238.9 million from RM103.5 million in the corresponding period last year. Additionally, velocity for the period under review rose to 57%, compared to 32% in the nine months of 2006.
On the derivatives front, the number of contracts recorded an improvement with a total of 4.8 million contracts traded in the period under review compared to 2.8 million in the previous corresponding period. The derivatives market also posted a 52% increase in trading revenue to RM34.8 million for the period ended 30 September 2007 from RM22.9 million in the previous corresponding period.
Bursa Malaysia also announced a special dividend of 28 sen per share less 27% 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. The special dividend is payable on 7 November 2007 and the entitlement date for the said dividend is on 29 October 2007.
On the progress of the Group’s KPIs, Dato’ Yusli said that Bursa Malaysia looks set to exceed its annual return on equity (ROE) target of 16.8%, as the annualised ROE for the nine-month period was 31.0%.
The presentation of the financial results for the nine month period ended 30 September 2007 is also available on Bursa Malaysia’s website (www.bursamalaysia.com).
FINANCIAL
RESULTS |
9M07 |
9M06 |
Difference |
Growth
% |
|
RM’mil |
RM’mil |
RM’mil |
% |
Operating
revenue |
350.5 |
186.9 |
163.6 |
88 |
Other
income |
38.3 |
30.3 |
8.0 |
26 |
Total
revenue |
388.8 |
217.2 |
171.6 |
79 |
Staff
costs |
(64.5) |
(55.8) |
(8.7) |
16 |
Depreciation
and amortisation |
(10.5) |
(11.6) |
1.1 |
(9) |
Other
operating expenses |
(51.7) |
(39.3) |
(12.4) |
32 |
Profit
from operations |
262.1 |
110.5 |
151.6 |
137 |
Finance
costs |
(0.5) |
(0.4) |
(0.1) |
25 |
Profit
before tax |
261.6 |
110.1 |
151.5 |
138 |
Income
tax expense |
(70.5) |
(29.8) |
(40.7) |
137 |
Profit
for the period |
191.1 |
80.3 |
110.8 |
138 |
Minority
interest |
- |
(0.8) |
0.8 |
(100) |
Profit
attributable to shareholders |
191.1 |
79.5 |
111.6 |
140 |