Bursa Malaysia’s FY2023 net profit up 11% to RM252 million
Published on: Wednesday, January 31, 2024
By: FMT Business
The FBMKLCI emerged as Asean’s second-best performer with a 5.7% increase in the second half of 2023.
PETALING JAYA: Bursa Malaysia Bhd recorded a 11.4% increase in net profit to RM252.4 million for the financial year ended Dec 31, 2023 (FY2023) from RM226.6 million in FY2022, on the back of higher revenue.
Its full-year revenue rose 2.19% to RM616.49 million from RM603.25 in FY2022, it said in a bourse filing today.
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For its fourth quarter (Q4 FY2023), net profit increased by 21.5% to RM59.55 million from RM49 million a year ago while revenue rose 11.39% to RM252.38 million from RM226.57 million previously.
The exchange operator’s profit growth was attributed to a 1.3% rise in operating revenue to RM592.8 million from RM585.3 million in FY2022. Total operating expenses saw a marginal 0.6% increase to RM294.5 million from RM292.7 million in FY2022.
The board declared a final dividend of 14 sen per share, amounting to approximately RM113.3 million.
It had paid an interim dividend of 15 sen per share in August 2023. This brings the total dividend to 29 sen per share, representing a payout ratio of 93% for FY2023.
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Bursa chairman Abdul Wahid Omar said the FBMKLCI emerged as Asean’s second-best performer, with a 5.7% increase in the second half of 2023, ending the year at 1,454.7 points from the 1,376.7 points recorded in the first half.
“Notwithstanding the challenging outlook, emerging markets and developing economies have outperformed advanced economies. Malaysia’s economy, in particular, remained resilient in 2023, with a projected GDP growth rate of close to 4%,” he said in a statement.
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CEO Muhamad Umar Swift said despite a slight 0.5% drop in the average daily trading value (ADV) to RM2.1 billion, it remained above the pre-pandemic level.
He added the total funds raised through initial public offerings (IPOs) and the IPO market capitalisation exceeded the figures from the previous year.
“In FY2023, the exchange raised RM3.6 billion from new listings compared to RM3.5 billion for FY2022, bringing our IPO market capitalisation to RM13.6 billion, surpassing last year’s total of RM11.2 billion.
“These developments highlight the market’s capability to adapt and thrive, solidifying the exchange’s role as a viable platform for fundraising and investing needs,” he added.
He said the Securities Market registered a 1.2% rise in trading revenue to RM266.6 million compared to RM263.5 million in FY2022.
In the Derivatives Market, trading revenue fell by 7.8% to RM89.6 million from RM97.2 million in FY2022, mainly due to lower collateral management fees earned, and fewer Crude Palm Oil Futures (FCPO) contracts traded in FY2023.
However, conference fees and exhibition-related income increased to RM7.3 million from RM2.1 million in FY2022, driven by a substantial rise in the number of participants at the Palm and Lauric Oils Price Outlook Conference & Exhibition.
Meanwhile, non-trading revenue from data business saw a rise to RM68 million in FY2023 as compared to RM60.8 million in the previous corresponding year.
This was underpinned by the higher Securities and Derivatives market data revenue, as a result from the revision in fees at the beginning of the second quarter of 2023 and a higher number of subscribers in FY2023.
As at 2.50pm, Bursa’s share price was up by 8 sen or 1.07% at RM7.55, giving it a market capitalisation of RM6.11 billion.
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