130 WE ARE KENANGA LEADERSHIP MESSAGE VALUE CREATION MODEL KENANGA INVESTMENT BANK BERHAD ANNUAL REPORT 2023 DIRECTORS’ REPORT SHARE BUY-BACK There were no share buy-backs nor resale of treasury shares by the Bank during the financial year. As at the end of the financial year, the shares held as treasury shares amounted to RM11,739,000 (2022: RM13,538,000). BUSINESS REVIEW FOR 2023 The profit before taxation (“PBT”) of the Group and of the Bank for the financial year ended 31 December 2023 (“FYE23”) were RM88.1 million and RM58.7 million, compared to PBT of RM74.2 million and RM58.3 million, respectively, in the previous financial year (“FYE22”). The performance of the Group’s respective business segments are analysed below: STOCKBROKING Stockbroking division reported a higher PBT of RM16.1 million for FYE23 (FYE22: PBT of RM2.5 million) mainly due to higher net brokerage fee income, higher trading and investment income and reversal of credit loss expense for margin clients as well as bad debt recoveries. INVESTMENT BANKING Investment Banking registered a lower PBT of RM5.7 million for FYE23 (FYE22: PBT of RM15.8 million) mainly due to lower net interest income from compressed interest margins and credit loss provision during the year. INVESTMENT AND WEALTH MANAGEMENT Investment and Wealth Management has achieved higher PBT of RM58.7 million for FYE23 (FYE22: PBT of RM54.2 million) mainly due to higher management and performance fees income but partially offset by higher expenses in line with revenue growth as well as credit loss expense of RM14.0 million. LISTED DERIVATIVES The Listed Derivatives segment has reported a higher PBT of RM6.2 million for FYE23 (FYE22: PBT of RM2.1 million) largely due to the higher trading activities in the local market and the interest income generated as a result of higher interest rates. MONEY LENDING AND FINANCING The Money Lending and Financing business reported a higher PBT of RM6.2 million for FYE23 compared to PBT of RM0.1 million for FYE22 mainly due to gain on the disposal of a subsidiary. In addition, there was a credit loss expense of RM1.8 million recorded in previous year which has been reversed in current year due to repayment.
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