KENANGA INVESTMENT BANK BERHAD 20 INTEGRATED ANNUAL REPORT 2025 GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS The Group’s Listed Derivatives Business, Kenanga Futures Sdn Bhd (“KFSB”), delivered a record-breaking performance in 2025, posting its highest profit in more than a decade with profit before tax rising to RM8.6 million from RM7.8 million in 2024. This exceptional performance was fuelled by strong execution volumes and its ability to capitalise on market opportunities. During the year, KFSB’s execution of Bursa Malaysia Derivatives Berhad (“BMD”) contracts grew by 11% to 15.5 million contracts, up from 14 million contracts in 2024. As a result, KFSB’s market share expanded to 35.7%, reinforcing its position as Malaysia’s No. 1 futures broker. Total BMD contract volumes also reached a new record high of 23.3 million, representing a 3% growth from 22.7 million the previous year. KFSB continued to be recognised for its leadership in Malaysia’s derivatives space, building on its achievements at the Bursa Excellence Awards 2024 where it was named Best Overall Derivatives Trading Participant (Champion), Best Institutional Derivatives Trading Participant (Champion), Best Trading Participant: Commodity Derivatives (Champion) and Best Trading Participant: Equity & Financial Derivatives (Champion). These accolades reflect its sustained excellence in derivatives execution, and product expertise as it further strengthened its market position in 2025. Beyond financial performance, KFSB strengthened its presence on the global stage, participating in key events such as the Palm & Lauric Oils Price Outlook Conference & Exhibition (POC) 2025, Women in Finance Awards Asia (WIFAA) 2025, Futures & Options World (FOW) Trading Hong Kong 2025, Globoil India 2025 and the Futures Industry Association (FIA) Asia Derivatives Conference 2025 in Singapore. As part of its ongoing commitment to building a smart derivatives trading community, it continued to expand its education and outreach efforts towards retail participants through thematic initiatives such as the Futures Awaken and Mighty Futures campaigns—all aimed at encouraging broader and informed retail participation in derivatives trading. Digital engagement continued to lead the company’s efforts, marked by its first podcast series aimed at simplifying futures education and broadening access to industry insights. This was complemented by ongoing online education initiatives and targeted salesforce engagement supporting both existing and newly introduced CME Group and BMD products. As KFSB advances to the next phase of growth, comprehensive efforts will be made with a particular focus on diversifying sales and marketing strategies, enhancing the scalability of new and existing products offerings, as well as exploring new opportunities in the derivatives landscape. These initiatives will further enhance the company’s competitiveness and strengthen its leadership in the derivatives market. Eq8 achieved a major milestone when its application to change its entity type to a conventional fund management company was approved by the Securities Commission Malaysia. This will enable Eq8 to broaden its scope to better serve evolving market demands by offering both Islamic and conventional ETFs. The Eq8 Dow Jones US Titans 50 ETF also secured two (2) major accolades at the IFN Investor Awards 2025 with Best ETF Fund in Malaysia and Best ETF Fund in Asia Pacific, affirming its track record and regional impact. It also clinched the Malaysia ETF Rising Star title at the AAM ETF Awards 2026. The launch of the Eq8 FTSE Malaysia Enhanced Dividend Waqf ETF, the first Waqf-featured ETF on Bursa, led to KIBB’s placement on the ESG Select List by the UN Global Compact Network Malaysia & Brunei (UNGCMYB). In 2025, KTB introduced the Kenanga Trust Series which offers multipurpose wealth solutions for clients to invest, preserve and distribute their wealth simultaneously. Its primary goal is to provide financial security during the formative years of a client’s dependents, especially when the client typically serves as the family’s cornerstone. KTB currently provides several options for clients and they are, Kenanga Trust Series – Trust 30, Kenanga Trust Series – Trust 30 Plus+ and Kenanga Trust Series – Trust 30 Kasih. KIG will continue to focus on curating its products and services to cater to investors within a constantly evolving financial landscape by collaborating with experts to bring additional AI and data-driven strategies to the market, whilst also exploring investments with the overarching objective of widening distribution reach within the region. Through these efforts, KIG seeks to reinforce its position as a trusted partner in asset and wealth management for Malaysians. Listed Derivatives Business
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