Kenanga Investment Bank Berhad posted record-breaking financial results for FY2024, with revenue surging 22.3% to RM1.0 billion and net profit rising 31.6% to RM95.8 million. The strong performance was driven by strategic investment gains, increased trading income, and robust contributions from its core business divisions.
MALAYSIA, 26 February 2025 – Kenanga Investment Bank Berhad (“Kenanga Group” or “the Group”), Malaysia’s leading independent investment bank, has announced its strongest financial performance to date for the financial year ended 31 December 2024 (“FY2024”). The Group recorded a historic revenue of RM1.0 billion, marking a 22.3% increase year-on-year, while operating profit soared 88.7% to RM155.5 million. Profit before tax (PBT) rose by 33.1% to RM117.2 million, with net profit reaching RM95.8 million, up 31.6% from the previous year.
Kenanga Group attributed its stellar performance to significant revaluation gains on strategic investments through its Private Equity arm, alongside higher trading and investment income, net brokerage income, and management and performance fees. Contributions from associates also bolstered earnings, partially offset by credit loss expenses. Reflecting the Group’s financial strength, the Board of Directors declared an interim single-tier dividend of 8.00 sen per ordinary share for FY2024.
Diversified Business Divisions Drive Growth
Group Managing Director Datuk Chay Wai Leong described FY2024 as a landmark year for Kenanga Group, highlighting its resilience in overcoming market challenges. “This milestone underscores the strength of our diversified business model and our strategic approach in capturing growth opportunities across key business segments,” he said.
The Stockbroking division posted RM363.6 million in revenue, a 17.9% year-on-year increase. Despite a slight decline in PBT to RM15.4 million due to credit loss expenses, the division maintained a 25.3% retail market share. Kenanga Group also retained its position as Malaysia’s leading issuer of structured warrants, with the highest market share in warrants trading volume.
The Asset and Wealth Management division achieved RM303.9 million in revenue, up 14.9%, primarily driven by growth in institutional and retail segments. Despite higher overhead costs, the division’s Assets Under Administration (AUA) expanded to RM23.5 billion, reflecting a year-on-year increase of RM1.8 billion.
The Investment Banking division also recorded strong growth, with revenue increasing by 10.0% to RM246.4 million, and PBT rising by 8.4% to RM6.2 million. This was fueled by higher investment income and fee income, supported by a robust bond and capital market.
Kenanga’s Listed Derivatives business continued its upward trajectory, achieving record revenue of RM27.6 million, up 15.3%, while PBT surged 24.1% to RM7.8 million. This growth was driven by increased trading commissions and interest income, reflecting a surge in trading activity.
Future Outlook and Commitment to Sustainability
Looking ahead, Kenanga Group aims to sustain its growth by strengthening core businesses, accelerating digital transformation, and enhancing cost efficiencies. “As we enter 2025, our focus remains on expanding product offerings, optimising efficiencies, and driving long-term sustainable growth,” said Datuk Chay.
Beyond financial performance, Kenanga Group continues to prioritise responsible and sustainable business practices. In 2024, the Group reaffirmed its commitment to ESG initiatives, maintaining its inclusion in the FTSE4Good Bursa Malaysia Index, ranking among the Top 8% of Malaysian public-listed companies.
