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 17 16 GROUP MANAGING DIRECTOR’S MANAGEMENT, DISCUSSION AND ANALYSIS GROUP MANAGING DIRECTOR’S MANAGEMENT, DISCUSSION AND ANALYSIS Association Annual Games 2024, a first for us. Competing against our industry peers, this victory is more than just a sporting achievement—it exemplified the same competitive drive, teamwork, and discipline that define our organisation. We are incredibly proud of our employees, whose excellence—both on and off the field— embodies the commitment that drives our success. I would like to take this opportunity to express my sincere gratitude to our shareholders, employees, clients, and regulators for their unwavering support throughout the year. It is through your trust and collaboration that we have been able to achieve our goals and continue to evolve in line with our long-term vision. Together, we will navigate the opportunities and challenges ahead, striving for excellence in all that we do. Advancing Our Digital Ecosystem A key milestone in our digitalisation journey was the launch of KDi GO in 2024—an all-in-one Wealth SuperApp designed to revolutionise how individuals engage with their finances. More than just a platform, KDi GO represents our vision of democratising access to wealth management, breaking down traditional barriers to financial services, and fostering greater financial inclusion. For the first time, investors can seamlessly access a full spectrum of financial solutions—from AI-driven robo-advisory tools to retail payments and money remittance—all within a single, intuitive application. By integrating equities, cash management, roboadvisory, and even alternative assets such as cryptocurrencies, KDi GO empowers users to take control of their financial future with ease and confidence. Looking ahead, Phase 2 of KDi GO will introduce advanced AI-driven personalisation, refining the user experience and deepening customer engagement. This next evolution of the platform will harness data-driven intelligence to offer tailored investment strategies, intuitive financial planning tools, and an even more seamless digital experience. With KDi GO, we are not just building a platform—we are shaping the future of finance. Our commitment remains clear: to make investing smarter, financial management simpler, and wealth creation accessible to all. Beyond the SuperApp, we continued to push the boundaries of digital innovation, empowering both clients and intermediaries. In 2024, we introduced significant enhancements to the Remisier portal, ensuring our remisiers have the tools needed to thrive in an increasingly digital and fast-moving landscape. With the largest network of remisiers in Malaysia, we remain dedicated to equipping our business partners with cutting-edge solutions that enable them to better serve clients and stay competitive in a fastevolving market. Another key milestone in 2024 was the successful consolidation of our customer database, a pivotal step in enhancing data intelligence, streamlining data management and deepening our insights into client behaviour and market trends. This integration augments our ability to deliver hyper-personalised, targeted engagement, optimise service delivery, and create seamless digital experiences that resonate with client needs. This initiative is instrumental in shaping the next phase of our digital journey, enabling a fundamental shift toward a more agile, and customercentric digital ecosystem. From the launch of KDi GO to the transformation of the Remisier portal, and the strengthening of our data ecosystem, we are laying the groundwork for a future where finance is more accessible and seamless. As the industry evolves, our commitment remains steadfast: to lead with innovation, drive financial inclusion, and redefine how Malaysians engage with financial services. Commitment to Sustainability In 2024, we continued to advance our sustainability agenda, focusing on delivering meaningful and measurable impact. A landmark achievement was the launch of the world’s first Waqffeatured exchange-traded fund (“ETF”), uniquely integrating financial returns with social impact. Beyond product innovation, we have also made significant strides with the development of a Decarbonisation Roadmap—a comprehensive framework to guide our transition to low-carbon economy. Part of our efforts was the establishment of a baseline for Scope 3 emissions from our investment activities, providing the critical foundation needed to manage climate-related risks and align with evolving regulatory and investor expectations on responsible investing. At the operational level, we took tangible steps to reduce our emissions. The adoption of the Green Electricity Tariff enabled over 90% of Kenanga Tower’s electricity to be sourced from renewable energy, reinforcing our commitment to sustainability while supporting Malaysia’s broader decarbonisation goals. These efforts, alongside our commitment to sustainability and responsible business practices were reaffirmed as Kenanga Group maintained its place on the FTSE4Good Bursa Malaysia Index, ranking in the 92nd percentile among Malaysian public listed companies. Our progress was further reinforced by multiple prestigious accolades. At the Euromoney Securities Houses Awards 2024, Kenanga was named Best Securities House for ESG in Malaysia. Our commitment to fostering a purpose-driven corporate culture was recognised at the United Nations Global Compact MalaysiaBrunei Forward Faster Sustainability Awards 2024, where we received the Sustainability Awareness and Employee Engagement Award. Kenanga Investors Group continued to lead in impact investing, earning the titles of Malaysia’s Best Impact Investing Manager and Best Impact Investing Manager in ASEAN at the Asia Asset Management 2025 Best of the Best Awards. The firm was also awarded the Malaysia Best ESG Engagement Initiative title. Kenanga Group was also honoured at the prestigious National Corporate Governance and Sustainability Awards 2024, organised by the Minority Shareholder Watchdog Group. We were awarded the Top 20 Overall Excellence Award and the Niche Cap Excellence Award, placing us among the Top 20 out of 854 Malaysian public listed companies. As a financial institution, governance is more than just compliance—it is the foundation of trust, resilience, and longterm value creation. In an industry where fiduciary responsibility and risk management are paramount, these awards underscore the rigour of our governance framework, the strength of our risk controls, and our commitment to transparency and accountability. They validate the principles that have guided Kenanga for over five decades: acting in the best interests of our stakeholders, upholding the highest ethical standards, and ensuring responsible stewardship of our corporation. Beyond payments, we continued to invest in high-impact digital businesses that align with the Group’s long-term strategy. In 2024, we made a strategic investment in Helicap Pte Ltd (“Helicap”), a leading Singapore-based fintech firm, through a fund managed by Kenanga Investors Group. Collectively, we have taken an 8% stake in Helicap, with plans to further increase our stake to approximately 10% in the near future, making us the largest institutional investor in the company. This partnership broadens our regional footprint, providing access to Helicap’s extensive investor network and opening new opportunities in offshore capital, co-origination, and syndication efforts across Malaysia and Singapore. As we accelerate our expansion in digital finance, our focus remains on driving innovation, strengthening market relevance, and unlocking new avenues for growth. Through strategic investments and technology-driven partnerships, we are reinforcing Kenanga’s role as a key player in this region’s evolving financial landscape. Financial Position As at 31 December 2024, the Group and Company maintained strong Total Capital Ratios of 23.0% and 24.7%, respectively, well above Bank Negara Malaysia’s minimum regulatory requirement of 10.5%, which includes a capital conservation buffer of 2.5% if imposed. Our liquidity position remained robust, with a Liquidity Coverage Ratio of 185.4%, exceeding the 100% regulatory threshold, while our Net Stable Funding Ratio stood at 111.3%, also surpassing the mandatory minimum. The Group sustained its A+ and MARC-1 ratings from the Malaysian Rating Corporation Berhad (“MARC”), with a positive long-term rating outlook, reflecting our ongoing efforts to strengthen financial resilience and maintain our standing in the market. Additionally, our subsidiaries, Kenanga Investors Berhad and Kenanga Islamic Investors Berhad, retained their MARC IMR-2 ratings, underscoring our disciplined investment processes and sound risk management practices. Corporate Highlights In 2024, we increased our equity stake in Merchantrade Asia Sdn Bhd (“Merchantrade”)—Malaysia’s largest Money Services Business operator—from 4.7% to 19.9%, making Kenanga its second-largest shareholder. This strategic move deepens our foothold in the digital payments space, leveraging Merchantrade’s platform to drive co-development of innovative products, such as the Kenanga Money e-wallet, one of the core offerings available on the KDi Go Wealth SuperApp. For a more detailed account of our sustainability efforts, please refer to our Sustainability Report 2024.
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