KUALA LUMPUR, July 31 — Bursa Malaysia Bhd posted a higher net profit of RM76.25 million for the second quarter ending June 30, 2023 (2Q FY2023) compared to RM59.47 million in the same period a year earlier due to lower operating expenses.
Revenue, however, eased to RM144.60 million in 2Q from RM151.89 million in the corresponding period last year.
The exchange said profit after tax, zakat and minority interest for the first half of 2023 (1H FY2023) grew 3.9 per cent to RM132.42 million versus RM127.44 million in the same period last year, while revenue fell to RM301.10 million from RM317.19 million previously.
In a statement, Bursa Malaysia attributed the improved profit to an 8.5 per cent decline in operating expenses to RM131.1 million in 1H FY2023 from RM143.2 million in 1H FY2022, mainly due to a one-off reversal of provision.
The exchange also declared an interim dividend of 15 sen per share for the financial year ended December 31, 2023 amounting to approximately RM121.4 million, representing a payout ratio of 91.7 per cent.
Bursa Malaysia said the securities market reported a trading revenue of RM126.0 million in 1H FY2023, a decrease of 14.4 per cent compared to RM147.2 million in 1H FY2022, due to lower average daily trading value for on-market trades and direct business trades, standing at RM2.09 billion against RM2.46 billion last year.
It said trading velocity in 1H declined to 28 per cent from 33 per cent last year, while funds raised through initial public offerings (IPOs) rose by 8.9 per cent to RM2.3 billion from RM2.1 billion previously.
Total derivatives trading revenue decreased by 6.9 per cent to RM44.5 million in 1H FY2023 from RM47.7 million in 1H FY2022, mainly due to lower collateral management fees earned and lower number of crude palm oil futures contracts traded during the period under review.
“As for the Islamic Market, a surge in trading activity in Bursa Suq Al-Sila’ led to a 15.5 per cent increase in trading revenue to RM8.8 million in 1H FY2023, up from RM7.6 million in 1H FY2022.
“Bursa Malaysia continues to focus on developing new shariah-compliant investment instruments to cater to investors’ needs, including sustainable and responsible investments, waqf-featured products, and Bursa Gold Dinar,” said the exchange.
Meanwhile, non-trading revenue increased by 3.2 per cent to RM110.3 million, driven predominantly by growth in the data business, which recorded an operating revenue of RM32.9 million, an increase of 5.6 per cent in comparison to the RM31.2 million generated in 1H FY2022.
Chief executive officer Datuk Muhamad Umar Swift said the exchange is cautiously optimistic in meeting its headline key performance indicators for FY2023.
He said the exchange will step up on efforts to drive market vibrancy via various measures, including making investments more affordable, as announced by Prime Minister Datuk Seri Anwar Ibrahim recently.
“As we navigate these uncertain times, we are encouraged by potential uplifts arising from the growth potential presented by the relatively attractive valuation of our equity market and anticipated stabilisation of the global interest rate environment.
“These factors, coupled with the recently reduced stamp duty rate on trading of shares, are poised to attract both local and international investors,” he added
— Bernama
