156 KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2025 DIRECTORS’ REPORT BUSINESS REVIEW FOR 2025 The profit before taxation (“PBT”) of the Group and of the Bank for the financial year ended 31 December 2025 (“FYE25”) were RM73.6 million and RM54.9 million, compared to PBT of RM117.2 million and RM85.2 million, respectively, in the previous financial year (“FYE24”). The performance of the Group’s respective business segments are analysed below: STOCKBROKING The stockbroking division was severely affected by the market sentiments as Bursa average daily trading value and retail participation dropped by 20% and 31% respectively year-on-year (“Y-o-Y”). The division reported lower revenue for FYE25 compared to FYE24, primarily due to a decline in brokerage fee income. This was partially mitigated by improved net interest income and lower overhead expenses. Consequently, the division recorded a break-even result for the year, compared to a PBT of RM15.4 million recorded in the prior year. INVESTMENT BANKING Investment Banking registered a higher PBT of RM22.4 million for FYE25 (FYE24: PBT of RM6.2 million) mainly due to higher net interest income, stronger bond trading performance, and credit loss recoveries recorded in current year. ASSET AND WEALTH MANAGEMENT Asset and Wealth Management’s PBT of RM46.1 million remained marginally below the prior year’s PBT of RM47.0 million. This was primarily attributable to persistent market headwinds that continued to exert pressure on management fee income, as well as elevated investment costs related to our digital initiatives. These impacts were mitigated by continuing net growth in overall sales. LISTED DERIVATIVES The Listed Derivatives segment delivered stronger PBT of RM8.6 million for FYE25 (FYE24: PBT of RM7.8 million), largely due to higher interest income and increased trading commissions, arising from the higher trading activities within the derivatives market during the current year. CAPITAL RATIOS The Group and the Bank remain on strong financial footing with total capital ratios of 21.797% (FYE24: 22.967%) and 24.328% (FYE24: 24.736%) respectively, well above the minimum prescribed by Bank Negara Malaysia (“BNM”) of 10.5% including capital conservation buffer of 2.50%.
RkJQdWJsaXNoZXIy NDgzMzc=