Bursa Malaysia records higher net earnings of RM252.38mil in FY23

KUALA LUMPUR: Bursa Malaysia Bhd recorded an improved financial performance in FY23 as operating revenue rose amid an increase in trading activity

In the fourth quarter of the financial year ended Dec 31, 2023, the stock exchange operator registered a net profit of RM59.55mil as compared to RM49.01mil in the same quarter in 2022.

The exchange's basic earnings per share in 4QFY23 rose to 7.4 sen from 6.1 sen in the year-ago quarter.

Revenue, meanwhile, was RM156.68mil, up from RM145.7mil in 4QFY22.

For the entire financial year, Bursa Malaysia posted a net profit of RM252.38mil as compared to RM226.57mil in FY22, and revenue of RM616.49mil against RM603.25mil in the year before.

According to Bursa Malaysia, the higher annual profit was owing to a 1.3% increase in operating revenue to RM592.8mil.

Operating expenses for the year was a marginal 0.6% higher to RM294.5mil, from RM292.7mil in FY22.

The board of directors declared a final dividend of 14 sen per share, amounting to about RM113.3mil, which brought the total yearly payout to 29 sen per share. This represented a payout ratio of 93% in FY23.

Bursa Malaysia CEO Datuk Muhamad Umar Swift said the bourse's average daily traded value (ADV) remained above the pre-pandemic level at RM2.1bil despite dropping 0.5% from the year before.

He added that RM3.6bil was raised through initial public offerings (IPO) in 2023 as compared to RM3.5bil in FY22, which brought the IPO capitalisation to RM13.6bil, beating the previous year's total of RM11.2bil.

"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 said.

During the course of the year, the securities market registered RM266.6mil in trading revenue, a 1.2% improvement due to higher ADV traded for on-market trades and direct business trades.

The derivatives market, however, saw trading revenue decline 7.8% year-on-year (y-o-y) to RM89.6mil due to lower collateral management fees earned and fewer crude palm oil futures contracts traded.

There was a significant jump in conference fees and exhibition-related income to RM7.3mil from RM2.1mil in FY22, due to a substantial rise in the number of participants at the Palm and Lauric Oils Price

Outlook Conference & Exhibition (POC).

The Bursa Suq Al-Sila' (BSAS) Islamic market recorded 3.9% y-o-y growth to RM17.1mil while the data business recorded a notable rise to RM68mil in FY23 as compared to RM60.8mil in FY22.