KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION OUR VALUE CREATION APPROACH 15 14 GROUP MANAGING DIRECTOR’S MANAGEMENT, DISCUSSION AND ANALYSIS GROUP MANAGING DIRECTOR’S MANAGEMENT, DISCUSSION AND ANALYSIS The year 2024 was a testament to the resilience, adaptability, and forward momentum of Kenanga Investment Bank Berhad (“Kenanga” or “KIBB” or “the Company”) and its Group of Companies (“Kenanga Group” or “the Group”). DEAR SHAREHOLDERS, In a rapidly evolving market landscape, we remained steadfast in our commitment to delivering value, achieving key milestones that reinforced our ability to navigate complexity while positioning ourselves for continued growth. Each of our core business pillars—Stockbroking, Investment Banking, Asset and Wealth Management, and Listed Derivatives— played a vital role in driving our performance and strengthening our foundation for the future. Global and domestic markets faced significant headwinds throughout the year. Inflationary pressures, geopolitical tensions, and shifting monetary policies contributed to heightened market volatility. Central banks, particularly in developed economies, walked a fine line between controlling inflation and supporting economic growth. The US Federal Reserve’s interest rate decisions shaped capital flows worldwide, while trade uncertainties— including US-China relations and regional conflicts—added layers of unpredictability to the global economic landscape. In Malaysia, despite these challenges, the economy demonstrated remarkable strength. Gross Domestic Product (“GDP”) grew 5.1%, supported by strong domestic demand, higher investment and steady exports in key sectors such as electronics and palm oil. Government policies, including subsidies and price controls, helped contain inflation at a manageable 1.8%, while unemployment fell to a record low of 3.1% at the end of 2024, signalling a stable job market. However, currency fluctuations and intensifying competition in core industries mirrored broader regional trends. In this environment, Kenanga Group continued to build on its momentum, leveraging both our robust business strategies and the resilience of our people to deliver exceptional performance. We have made notable strides in multiple DATUK CHAY WAI LEONG Group Managing Director Revenue RM1.0 billion Operating Profit RM155.5 million Profit Before Tax RM117.2 million Dividend Declared 8.0 sen SEGMENTAL REVIEW Stockbroking Listed Derivatives Business Page 18 Page 18 Page 19 Page 20 Investment Banking Asset and Wealth Management fronts—digital transformation, sustainability, and product innovation. As we lay the groundwork for our next phase of growth, our forward-thinking approach positions us to continue contributing to the future of financial services. Overview Amidst a volatile market landscape in 2024, I am pleased to report that Kenanga Group delivered one of our strongest financial performances to date. For the Financial Year Ended 31 December 2024 (“FY2024”), we achieved record-breaking results, with Revenue reaching RM1.0 billion and Operating Profit surging to RM155.5 million—the highest in a decade. Profit Before Tax (“PBT”) climbed to RM117.2 million, while Net Profit stood at RM95.8 million. This result was driven by a significant revaluation gain on strategic investments through our Private Equity arm, along with the outstanding performance of our Listed Derivatives subsidiary, recording a 44% increase in contract volume and delivering its strongest performance in ten (10) years. The momentum was reinforced by the resilience of our Stockbroking division, which defended its retail market share of 25.3% amid heightened market volatility and intensifying competition, as well as the strength of our Investment Banking division, capitalising on a vibrant capital markets environment marked by renewed investor confidence, increased dealmaking activity, and stronger liquidity flows. Our Asset and Wealth Management arm, Kenanga Investors Group, further solidified its position as one of Malaysia’s top asset managers, expanding its product suite and leveraging its fast-growing agency force. Assets Under Administration grew to RM23.5 billion despite challenging market conditions. Each of these businesses plays a distinct and indispensable role in Kenanga’s ecosystem— like interlocking pieces of a larger puzzle. It is this synergy, built over decades, that has allowed us to demonstrate a diversified earnings base, weather market cycles, seize opportunities, and consistently create longterm value for our shareholders. This same spirit of collaboration and solidarity, allowed us to clinch the overall Champion title at the Malaysian Investment Banking Key Highlights from 2024
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