KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED OUR VALUE CREATION APPROACH FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION 143 142 DIRECTORS' REPORT The Directors have pleasure in presenting their report together with the audited financial statements of Kenanga Investment Bank Berhad (“the Bank” or “KIBB”) and its subsidiaries (“the Group” or “Kenanga Group”) for the financial year ended 31 December 2024. PRINCIPAL ACTIVITIES The Bank is principally engaged in the investment banking business, provision of stockbroking and related financial services. The principal activities of the subsidiaries and associates are as described in Note 13 and Note 14 to the financial statements, respectively. There were no significant changes to the nature of the principal activities during the financial year. RESULTS Group RM’000 Bank RM’000 Profit before taxation and zakat 117,249 85,212 Taxation and zakat (21,494) (13,224) Profit for the financial year 95,755 71,988 Attributable to: Equity holders of the Bank 95,755 71,988 There were no material transfers to or from reserves or provisions during the financial year other than those that have been disclosed in the statements of profit or loss and other comprehensive income and the statements of changes in equity. In the opinion of the Directors, the results of the operations of the Group and of the Bank during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature. DIVIDENDS During the financial year, an interim single tier dividend of 7.0 sen per ordinary shares on 725,083,299 ordinary shares in respect of the financial year ended 31 December 2023, which amounted to RM50,755,831 was paid on 16 April 2024. Subsequent to the financial year end, on 26 February 2025, the Directors have declared an interim single tier dividend of 8.00 sen per ordinary share in respect of the financial year ended 31 December 2024 which amounted to total dividend payable of approximately RM58,861,008. This is computed based on issued and paid-up capital as at 31 December 2024 of 735,762,599 ordinary shares. The actual amount of dividend to be paid will depend on the number of shares in issue at the date of entitlement. The financial statements for the current financial year do not reflect this dividend. Such dividend will be accounted for in equity as an appropriation of retained profits in the financial year ending 31 December 2025. DIRECTORS’ REPORT DIRECTORS’ REPORT KENANGA GROUP’S EMPLOYEES’ SHARE SCHEME (“ESS” OR “SCHEME”) The Kenanga Group’s ESS is governed by the By-Laws approved by the shareholders of the Bank at an Extraordinary General Meeting held on 25 May 2017. The ESS was implemented on 21 September 2017. It is valid for a period of five (5) years from its commencement date, and is administered by the ESS Committee. The ESS has been extended for another five (5) years from 21 September 2022 to 20 September 2027 in accordance with the provisions of the By-Laws of the ESS. The aggregate maximum number of the shares which may be made available by the Bank under the Scheme shall not in aggregate exceed 10% of the issued share capital of the Bank (excluding treasury shares) at any point in time during the duration of the Scheme. Other principal features of the ESS are as follows: (i) The employees eligible to participate in the ESS must be at least eighteen (18) years of age on the Award Date and are employed by, and are on the payroll of the Kenanga Group and are confirmed in service. The ESS applies to the Bank and its non-dormant subsidiaries. (ii) The entitlement under the ESS for the Executive Directors are subject to the approval of the shareholders in a general meeting and are not prohibited or disallowed by the relevant authorities or laws from participation in the Scheme. The ESS encompasses two (2) primary schemes in the form of Employee Share Option Scheme (“ESOS”) and Employee Share Grant Plan (“ESGP”). The actual allocation of share options to senior management of the Group over the maximum ESS shares was 31.33% as at 31 December 2024. The actual allocation of share grant to senior management of the Group over the maximum ESS shares was 3.29% as at 31 December 2024. More details of the ESS are as disclosed in Note 55 to the financial statements. ISSUANCE OF SHARES AND DEBENTURES There were no new ordinary shares or debentures issued during the financial year. SHARE BUY-BACK During the financial year, the Bank bought back 620,000 ordinary shares at an average price of RM0.929 from the open market. The share buy-back transactions were financed by internally generated funds. As at 31 December 2024, the total number of shares held as treasury shares in accordance with the provisions of Section 127 of the Companies Act 2016 was 7,457,800. Such treasury shares are held at a carrying amount of RM7,441,000 (2023: RM11,739,000), as disclosed in Note 28 to the financial statements.
RkJQdWJsaXNoZXIy NDgzMzc=