KENANGA Investment Bank Bhd reported a 57.2% decline in net profit to RM9.77 million for the first quarter ended March 31, 2025 (1QFY2025), down from RM22.83 million a year earlier, primarily due to a significantly lower share of profit from associates.
This was despite a 2.6% year-on-year revenue increase to RM209.61 million, driven by higher interest income.
During the quarter, Kenanga IB disposed of its entire 45% stake in Kenanga Investment Corp Ltd for RM517,000, resulting in a net loss of RM99,000.
Among its business segments, the investment banking division returned to profitability with a pre-tax profit of RM4.15 million, versus a loss of RM2.11 million a year ago, supported by improved trading and investment income.
However, its stockbroking unit posted a wider pre-tax loss of RM4.64 million amid subdued market activity, while the asset and wealth management segment saw a 23.6% drop in pre-tax profit to RM5.8 million due to higher overheads.
Looking ahead, group MD Datuk Chay Wai Leong said Kenanga remains focused on strengthening recurring income, enhancing cost efficiency, and leveraging digital innovation to navigate a challenging global landscape and capitalise on emerging opportunities. — TMR
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