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 33 32 OUR BUSINESS VALUE CREATION MODEL OUR SIX CAPITALS KEY INPUTS CORE BUSINESS AND BUSINESS ACTIVITIES OUTPUTS OUTCOMES Our vision is to democratise wealth management by breaking down traditional barriers to financial services and fostering greater financial inclusion. M N Reduced overall GHG emissions at Kenanga Tower while reinforcing our support of the nation’s transition to a low-carbon economy. S • Top 20 Overall Excellence Award and the Niche Cap Excellence Award, National Corporate Governance and Sustainability Awards 2024 • Increased public financial awareness • Boosted local economic growth and supported social enterprises • Built stronger client trust and enhanced fraud prevention I Throughout the year, we strengthened our core businesses, enhanced recurring income streams, and future-proofed our market positions by advancing digitalisation, fostering innovation, and embedding sustainability into our operations. • Stockbroking retail segment market share: 25.3% • Stockbroking volume transacted: 423.3 billion shares • Futures trading volume: 14.0 million contracts • Assets Under Administration: RM23.5 billion M N • Total energy consumption: 19,213.2 GJ • Total petrol consumption: 17,382 litres • Total electricity consumption: 5,173,684 kWh • GHG emissions data: Scope 1: 42 tCO2e Scope 2: 2,226.2 tCO2e Scope 3: 2,300,130.2 tCO2e • Total water consumption: 40,577.3 m3 S • Total procurement spent on local entities: RM112.1 million • Total number of volunteer hours: 2,808 hours • Total amount invested on community initiatives: RM648,226 • Direct positive impact to over 2,700 individuals in marginalised communities • Involved in 164 financial literacy programmes • Over 1,850 participants registered for our annual Fraud Awareness Week in 2024 I Intellectual Capital Intellectual Capital refers to intangible organisational assets rooted in knowledge, which may encompass intellectual property like software or licences, as well as proprietary knowledge, systems, or procedures. F Financial Capital Financial Capital refers to the cumulative resources of funds at the disposal of the Group. M Manufactured Capital Manufactured Capital encompasses the Group’s infrastructure, comprising physical branches and digital technology, among other things, which are instrumental in delivering services to customers. H Human Capital Human Capital encompasses the collective skills and expertise held by all Kenanga Group employees. This combined capability empowers the Group to implement its strategies and create value for its stakeholders. N Natural Capital Natural Capital involves the stewardship of natural resource utilisation and its consequential effects on the environment. S Social and Relationship Capital Social and Relationship Capital encompasses the connections fostered among communities and stakeholders, as well as enhancing financial literacy and inclusion through education. F • Revenue: RM1.0 billion • Profit before tax: RM117.2 million • Net profit: RM95.8 million • Dividend: 8 sen per ordinary share F • Strengthened position as Malaysia’s leading investment bank • Return on Equity: 8.75% • A+ credit rating from MARC • Kenanga Investors Berhad and Kenanga Islamic Investors Berhad retained its MARC IMR-2 rating H • Silver Award (Large Companies Tier) for Diversity, Equity and Inclusion, ESG Positive Impact Awards 2023 • Gender Pay Ratio: 1:0.92 • Return to Work Rate from Parental Leave: 100% • Zero incidents of work-related fatalities • Turnover rate: 16.6% F Shareholders’ Equity: RM1.12 billion Deposit from Customers: RM3.76 billion Strong capital ratio of 23.0% and liquidity coverage ratio of 185.4% M 30 branches List of Digital Channels/ Apps from Kenanga: • KDi GO • Kenanga Digital Investing • KenTrade • NagaWarrants • Kenanga Money • KenEasy • KenWealth • KDF TradeActiveTM • Kenanga FX • DCO (Digital Client On-boarding) • iSPEED.my (Rakuten Trade) N Secured Green Electricity Tariff from Tenaga Nasional Berhad Completion of rectification works to improve our water management system Enhancements made to the air conditioning and air handling unit system in 2022 S Total number of clients: >500,000 Key Collaboration and Partnerships: • Association of Certified Fraud Examiners • United Nations Global Compact • United Nations Women • Silent Teddies Bakery • Dialogue Includes All Academy • LeadWomen • Pertubuhan Rahoma Darul Fakir Malaysia • National Cancer Society Malaysia • Pertiwi Soup Kitchen I Over 50 years of experience First independent investment bank in Malaysia to join the United Nations Global Compact Drive thought leadership through industry committees Responsible Investing Digitalisation Cyber Security Client Experience Climate Impact Diversity and Inclusion Community Investment Financial Inclusion Good Business Conduct Regulatory Compliance Risk Management Employee Safety, Health, and Wellbeing Talent Attraction, Development, and Management MATERIAL MATTERS KEY RISKS Credit Risk Climate Risk Technology Risk Market Risk Liquidity and Funding Risk Operational Risk H Total number of Kenanga Group employees: 1,334 Total number of licensed representatives: 6,120 For more detailed information on our key risks and its mitigation, please refer to pages 26 to 31 of this Integrated Annual Report 2024. For more detailed information on our material matters, please refer to page 35 of this Integrated Annual Report 2024. I • Best Investment Bank Malaysia 2024, Global Banking & Finance Awards 2024 • Equity Broking Best Retail Equities Participating Organisation (Investment Bank) (Champion), Bursa Excellence Awards 2024 • Asset and Wealth Management 2025 Best of the Best Awards - Best Impact Investing Manager (ASEAN & Malaysia) - Malaysia Best Retail Asset Management Company - Malaysia Best Equity Manager • Listed Derivatives Business Best Overall Derivatives Trading Participant (Champion), Bursa Excellence Awards 2024 • Maintained our inclusion on the FTSE4Good Bursa Malaysia Index with an improved overall ESG score to 4.2 from 4.0 H • Gender Representation: • In 2024, we continue to adhere to the UN Women’s Empowerment Principles (WEPs) after becoming a signatory in 2023. • Total amount of training hours recorded: 42,294 hours • 45 employees received professional and role-based certification Talent Attraction and Development: • Individual Development Plan • Training and Learning Opportunities • Private Retirement Scheme • Medical Benefits • Fitness Memberships • Dental and Optical Benefits • Employees’ Share Option Scheme • Hybrid Work Arrangement Male: 48% Female: 52% OUR BUSINESS VALUE CREATION MODEL Equity Broking CORE BUSINESS SEGMENTS Investment Banking Money Lending Listed Derivatives Business Asset and Wealth Management Treasury Islamic Banking Wealth Management Digital Platform Roboadvisory
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