Bursa Malaysia’s 9M2017 Profit After Tax And Minority Interest Up 17.0% YoY To RM167.8 Million

Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) recorded a 17.0% year-on-year increase in its Profit After Tax and Minority Interest (“PATAMI”) to RM167.8 million for the nine month financial period ended 30 September 2017 (“9M2017”), compared to RM143.5 million registered in the same period last year.

Operating revenue improved by 8.9% to RM392.1 million, while operating expenses increased marginally at 1.4% to RM183.9 million. The annualised Return on Equity (“ROE”) and cost-to-income ratio stood at 27% and 44% respectively.

Datuk Seri Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said, “The growth in PATAMI is attributable largely to the increase in both trading and non-trading revenue. The equity market remained buoyant up to end of 3Q2017. The benchmark FBM KLCI registered a 6.9% gain in the first nine months of 2017 on the back of overall positive market sentiment and net inflows from foreign investors. Increase in listing fee collections from higher and larger Initial Public Offerings(“IPOs”) and new structured warrants listed, together with processing fees earned from corporate exercises, contributed to the increase in non-trading revenue.”

The favourable market condition also contributed to improved market activities. For the period under review, the Average Daily Trading Value (“ADV”) for the Securities Market’s On-Market Trades (“OMT”) increased 24.8% to RM2.3 billion. The first nine months of 2017 saw 10 IPOs that raised a total of RM7.4 billion compared to RM0.5 billion in the same corresponding period last year.

The Average Daily Contracts (“ADC”) traded for the Derivatives Market stood at 58,817 contracts, a marginal increase of 0.2%. Seasonality factors impacting CPO supply contributed to increased hedging activities and trading of FCPO contracts, which stood at 9.0 million contracts in 9M2017, a 4.4% increase from 9M2016.

The increase, however, was offset by the decline in FKLI trading due to historically low volatility on both local and global equity markets. A stable outlook for commodity prices and the tapering of monetary easing in major economies are expected to continue to affect trading of FCPO and FKLI contracts.

Improvement in Bursa Suq Al-Sila’s (“BSAS”) trading activities amidst stiff competition on the local and global front resulted in a 15.2% ADV growth to RM18.9 billion in 9M2017. Efforts are being undertaken to expand BSAS’ reach in new regions such as North Africa and Central Asia.

PATAMI for the third quarter of 2017 (“3Q2017”) increased 17.2% to RM51.6 million compared to the corresponding quarter in 2016. Operating revenue rose 9.7% to RM122.6 billion. The ADV for the Securities Market‘s OMT improved by 12.1% to RM2.0 billion, while ADC traded on the Derivatives Market increased marginally to 56,848 contracts in 3Q2017. On the Islamic Capital Market front, the ADV for BSAS soared 34.5% to RM20.4 billion.

Bursa Malaysia recorded a significant milestone with the launch of the Leading Entrepreneur Accelerator Platform (“LEAP”) Market in July to assist small and medium enterprises (“SMEs”) to raise funds from the capital market for their business expansion. The LEAP Market went live on 3 October with the successful listing of Cloudaron Group Berhad.

"Bursa Malaysia will continue to create a vibrant and sustainable capital market ecosystem to provide more opportunities for fund-raising and trading activities for all our stakeholders,” Datuk Seri Tajuddin added.

The financial results for the period ended 30 September 2017 are available on www.bursamalaysia.com