KUALA LUMPUR (May 31): Kenanga Investment Bank Bhd’s first quarter net profit dropped 51.13% to RM16.70 million from RM34.16 million a year earlier, due to lower contribution from brokerage fee income as well as trading and investment income.

Earnings per share for the quarter ended March 31, 2022 (1QFY22) fell to 2.30 sen from 4.78 sen, the group’s filing with Bursa Malaysia showed.

Quarterly revenue declined 26.07% to RM184.90 million from RM250.12 million, underpinned by higher contribution from the group’s investment and wealth management business.

On a quarter-on-quarter basis, the group’s net profit tumbled 48.18% from RM32.22 million in 4QFY21, while revenue was down 8.21% from RM226.08 million.

Kenanga said that in line with moderation in the average daily trading value on Bursa Malaysia, its stockbroking segment recorded lower revenue at RM84.80 million during the quarter.

The group’s managing director Datuk Chay Wai Leong said the Russia-Ukraine crisis, China’s economic slowdown, and protracted global supply chain disruption will have an impact on the prospects of global capital markets.

“In addition to managing liquidity, market and credit risks against these volatile and challenging conditions, our priority is to maintain momentum on delivering against our digital agenda through the design and development of new systems, advancement of automation for efficiencies and to constantly be on the lookout for new ways to approach the market with innovative solutions,” he said.

“We are seeing strong client interest in Rakuten Trade's foreign share trading product, as well as our newly launched robo-advisory product, Kenanga Digital Investing,” Chay added.

Shares in Kenanga finished unchanged at RM1.03, giving the group a market capitalisation of RM757.84 million.