KUALA LUMPUR, 29 August 2025 – Kenanga Investment Bank Berhad (“Kenanga Group”), Malaysia’s leading independent investment bank, reported a steady performance for the first half of 2025 (1H25) with revenue of RM413.0 million and profit before tax (PBT) of RM22.6 million, amid a challenging trading environment.
The results compared to RM447.3 million in revenue and RM40.5 million in PBT in the same period last year (1H24), which had included a one-off gain of RM13.0 million from an associate. Despite weaker Bursa trading activity impacting brokerage income, the Group benefited from higher net interest income and stronger futures commissions. Net profit for the period stood at RM12.1 million.
Segmental Performance
The Investment Banking division was a bright spot, delivering RM130.9 million in revenue, an 8% increase from a year earlier, while recording a turnaround to RM11.3 million PBT, compared with a loss before tax of RM3.0 million in 1H24. The improvement was driven by stronger net interest and trading income as well as lower credit provisions.
The Listed Derivatives business also performed strongly, with revenue rising 15% year-on-year to RM15.2 million, while PBT surged 27.6% to RM4.8 million, supported by higher trading commissions from increased derivatives market participation.
Meanwhile, the Asset and Wealth Management arm posted RM119.9 million in revenue, up slightly from RM118.5 million in 1H24. PBT stood at RM10.4 million versus RM11.6 million previously, impacted by strategic interest rate positioning and higher transaction costs linked to its digital investment platform. The segment’s Assets Under Administration (AUA) remained robust at RM23.8 billion, reflecting its strong client base despite market volatility.
In contrast, the Stockbroking segment continued to face headwinds, with revenue falling to RM147.8 million from RM197.1 million in 1H24. The segment posted a loss before tax of RM8.4 million, compared to a profit of RM13.6 million last year. The decline reflected reduced retail participation in equities, in line with Bursa’s 26.9% drop in average daily trading value, and additional provisioning requirements.
Strategic Outlook and Recognition
Group Managing Director Datuk Chay Wai Leong acknowledged the mixed performance but stressed the Group’s resilience:
“While global uncertainties and market headwinds persist, we remain cautiously optimistic about Malaysia’s economic resilience. At Kenanga Group, our focus remains on navigating the evolving landscape with prudence, discipline, and strategic execution to deliver long-term value for all stakeholders.”
Underscoring its commitment to sustainability and inclusivity, Kenanga Group was recognised at the Euromoney Awards for Excellence 2025, winning the accolades for Malaysia’s Best Bank for ESG and Malaysia’s Best Bank for Diversity & Inclusion.
