Bursa Malaysia Berhad - 1Q2014 Financial...
Transcript of Bursa Malaysia Berhad - 1Q2014 Financial...
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1Q2014 Financial Results
17 April 2014
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AGENDA
FINANCIAL HIGHLIGHTS & REVIEW
MARKET PERFORMANCE
FOCUS AREA AND CONCLUSION
APPENDICES
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ROBUST GROWTH
FINANCIAL HIGHLIGHTS & REVIEW
Financial Highlights
Profit and ROE Trend
Operating Revenue
Operating Expenses
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Financial Highlights A good start to the year despite global challenges
Higher operating revenue for 1Q2014 largely driven by higher securities trading activities.
Higher PATAMI due to higher trading revenues coupled with continuous cost management.
Higher annualised ROE contributed by higher PATAMI and capital management.
Financial Items 1Q2014
1Q2014
vs.
1Q2013
1Q2014
vs.
4Q2013
Operating Revenue (RM million) 115.1 13% 11%
Operating Expenses (RM million) 60.2 10% 8%
PATAMI (RM million) 45.1 18% 33%
EPS (sen) 8.5 18% 33%
Cost to Income Ratio (%) 49 1 percentage point
9 percentage points
Annualised ROE (%) 23 5 percentage points
6 percentage points
1Q2014 vs. 1Q2013:
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101.7 122.2
112.0 103.9 115.1
38.2 54.8
46.2 33.9
45.1
1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014
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Profit & ROE Trend Growing sustainable revenue
50 41 46
58 49
18 25
22 17
23
Operating Revenue
(RM mil)
PATAMI
(RM mil)
Cost to Income
Ratio (%)
ROE (%)
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101.7 101.7
114.3 114.3 114.7
116.4
114.9 114.9
115.1
13.8 - 1.3 0.5 1.7 0.4 - 2.0
0.3
1Q2013 1Q2014
(RM mil)
43.2 57.0
18.5
17.2 1.3
1.8 11.3
13.0 7.8
7.8 6.5
6.9 7.4
5.4 5.7
6.0
1Q2013 1Q2014
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Total
RM115.1 mil
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
13%
Market Data
Membership Services & Connectivity
BSAS Trading Revenue
Total
RM101.7 mil
Operating Revenue Revenue bolstered by active trading in securities market
32%
7%
38% 7%
Growth contribution by revenue streams:
15% 7%
Other Operating Revenue*
28%
Growth in securities market revenue contributed by higher trading participation from retail
investors and continued support by domestic institutions.
Lower derivatives trading revenue despite higher trading volume due to lower guarantee and
collateral management fees.
Growth in BSAS trading revenue contributed by higher domestic and foreign participation.
Growth in listing and issuer services revenue due to higher number of new structured warrant
listings and corporate exercises.
Lower revenue from membership services and connectivity due to lower broker services fee and
a revision in Bursa access fee structure.
Note* - Other Operating Revenue mainly includes conference & expo income
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27.2 32.6
8.8 6.4
3.7 4.0 4.5 5.1 3.8 4.4 6.9
7.7
1Q2013 1Q2014
Total
RM54.9 mil
Total
RM60.2 mil
10%
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses^
5.4 - 2.4
0.3 0.6 0.6
0.8
1Q2013 1Q2014
(RM mil)
16% 12% 27% 8%
20%
Operating Expenses Building talent and cost management
Movement of expenses:
54.9 60.2
12%
Increase in staff costs due to talent building and higher headcount in 1Q2014.
Decrease in depreciation arising from a lower investment in new trading systems (BTS2).
Increase in IT maintenance due to onsite maintenance of the new trading system.
Increase in service fees due to higher derivatives contract traded in 1Q2014.
Note^ - Other Operating expenses includes building maintenance, administrative expenses and CDS expenses.
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STRENGTHENED MARKETPLACE
Market Performance
Securities Market Overview
Derivatives Market Overview
Islamic Market Overview
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1,472
1,702 1,719
1Q 2013 4Q 2013 1Q 2014
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Securities Market Overview Higher trading and secondary market fund raising activities
Average Daily Value (OMT+DBT)
(RM mil)
Market Capitalisation (RM bil) Fund Raised from New Listings &
Secondary Market (RM bil)
1,716
2,330
2,159
1Q 2013 4Q 2013 1Q 2014
28
25
30
Velocity (%) FBMKLCI
1,671.63
1,866.96 1,849.21
2.41
9.21
7.41
1Q 2013 4Q 2013 1Q 2014
No. of New Listing
2
7
2
26%
17%
7% 1%
207%
20%
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Derivatives Market Overview FCPO contracts hit new high, ADC surpassed 50,000 contracts
Average Daily Contracts (’000)
Crude Palm
Oil Futures FBMKLCI
Futures Others
77%
22% 25%
Open Interest since Migration to Globex®
1/9/10
111,548
26/7/13
258,001
31/12/12
214,065
31/03/14
218,002
1Q 2013 4Q 2013 1Q 2014
45.19
41.54
78% 77%
23% 21%
79%
20%
50.05
20%
11%
1%
1%
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3.65
4.67
5.10
1Q 2013 4Q 2013 1Q 2014
9%
33.5
32.9
37.4
1Q 2013 4Q 2013 1Q 2014
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Islamic Market Overview Continue to gain recognition as a market leader
% of Shari’ah Compliant Stocks No. of Trading Participants
Bursa Suq Al-Sila’ ADV
(RM bil) Market Capitalisation of Shari’ah
Compliant Stocks (RM bil)
No. of Sukuk
Value of Listed Sukuk (USD$ bil)
40%
807
1,029 1,045
1Q 2013 4Q 2013 1Q 2014
88 71 71
29%
19 20 21
11%
14% 2%
71
78 78
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FOCUS AREA AND CONCLUSION
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STRONGER
COLLABORATION
Focus Areas
Achievements in 1Q2014
Going Forward
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LEVERAGE ON
ASEAN
GROWTH
LEVERAGE ON
DOMESTIC
LIQUIDITY
IMPROVING
MICROSTRUCTURE
Focus 1: Value Extraction Focus 2: Build for the Future
REVIEW
MACRO-
STRUCTURE
REVIEW
MARKET
FRAMEWORK
DEVELOP REGIONAL
PRESENCE &
NEW BUSINESS
Focus Area To establish strong regional presence
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Achievements in 1Q2014
Recorded improvement in financial performance and across 3 markets.
Securities Market
Listing of new ETF listing – MyETF MSCI Malaysia Islamic Dividend
Increase of available stocks for Securities Borrowing and Lending from 171 to 218
Derivatives Market
Introduced new Participantship Structure for Trading Participants and
Associate Participants to drive the recruitment of new intermediaries and to expand the distribution channel.
Islamic Market
Signed MoU with the Saudi Stock Exchange (Tadawul) to formalise a collaboration to develop cross border activities between both exchanges in capital market
development.
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Going Forward
Bursa Malaysia will continue to:
Expand product and service offerings.
Further enhance market accessibility for both participants and investors.
Enhance regulatory framework to strengthen our marketplace.
E-initiative to grow retail
participation – with
THERE’S SOMETHING FOR
EVERYONE ON
BURSAMKTPLC
Creating a distinct and
trustworthy marketplace –
the first in the region
ESG Index
Continue to strengthen
Bursa Malaysia as
ASEAN
MULTINATIONAL
MARKETPLACE
Key Deliveries in 2014:
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www.bursamalaysia.com
Appendices
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350 472 748 874 718
1,019
2,179
1,181 1,129 1,454
1,699 1,573 1,915
2,068
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400
800
1,200
1,600
2,000
2,400
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q2014
RM mil
615
1,490 1,266
1,099 1,435
1,209 1,387
1,793 2,161
1,579 1,732
1,341 1,841 1,439
1,595 1,793
1,643
2,308 2,002
1,686
2,068
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400
800
1,200
1,600
2,000
2,400
2,800
1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q14
RM mil
20 23
34 32 25
32
53
34 34 33 33 28 30 30
23
48
36
28 35
28 31
37 42
30 34
27 34
27 28 25 28
37 32
25 30
Turnover Velocity (%)
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Quarterly ADV Traded & Velocity
Average Daily Value Traded (OMT, RM mil)
Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)
Annual ADV Traded & Velocity
Securities Market Trading Activity
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66 63
76 67
73 74 77 78
74
34 37 24 33 27 26 23 22 26
2006 2007 2008 2009 2010 2011 2012 2013 YTD Mar
2014
18
65 63 58
73 73 74 74 74 76
35 37 42 27 27 26 26 26 24
2006 2007 2008 2009 2010 2011 2012 2013 YTD Mar 2014
From 2006 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based on Bursa’s internal
system.
Retail
(%)
Institutions
(%) Local
(%)
Foreign (%) Retail ADV Traded
(RM mil)
Foreign ADV
Traded (RM mil)
Retail vs Institutions Foreign vs Local
Securities Market Trading Participation
357
806
496
323 392 437 404
507 505
346
806
283 369 392
442 354
424 528
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23.6 77.4
19
Foreign Ownership by Nationality (%) Based on Market Capitalisation
(as at month end)
(%)
Singapore
Hong Kong
UK
Foreign Nominees
China
Taiwan
USA
Mid-East
5.6
1.6
2.1
0.4
0.8
0.1
0.1
Others 12.9
Securities Market Foreign Ownership 26.2
21.3
20.4
21.9
22.7
23.9
23.5
23.2
23.1
23.0
2007 2008 2009 2010 2011 2012 2013 Jan-14 Feb-14 Mar-14
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50
20
117
142
123
129
115 114
132 136
162
171
152
174
146
172
214
196
213 204
196
218
66
85
159
125
156
123 132
152
214
196
218
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
Total Annual Contract (Mil) Quarterly (Average Daily Contracts ’000)
Crude Palm Oil Futures Others Open Interest (’000)
20%
79%
2.6 2.5
4.2
6.2 6.1 6.1 6.2
8.4
FMBKLCI Futures
20%
29
`
`
79%
24 22
24 23 25
28
37
32 34 35
31
40 42 44
9.6
45
10.7
42
46
Derivatives Market Activity
42
1%
3.0
1%
YTD
Mar
2014
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21
31 19 14 16 16 13 15 15 20 21 19 17 18 18
45
48
45 43 40 40 41 46 52 44 42 25 28 25
3
6
5 3
3 2
2 2
3
2 2
2 1 3
14 23
31 37 40
45 42 37
26 33 37
56 53 55
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013
(%) FKLI
40 38 35 33 35 31 25 27 36 34 34 36 33 35
15 21 26 24 23 27
34 38
27 26 24 19 17 16
4
6 4
3 2 1 1 1
1 1
1 1
27
21 18 20 22 25 22
15 17 15
13 12 10 12
14 14 17 20 18 16 18 20 19 25 28 32
39 36
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013
(%) FCPO
Local
Domestic Retail
Domestic Institutions
Foreign Institutions Local
Domestic Retail Domestic Institutions
Foreign Institutions Foreign Retail
June –
Dec
2012
June -
Dec
2012
Derivatives Market Demography
YTD
Mar
2014
YTD
Mar
2014
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Islamic Market Trading Activity
RM bil
0.01 0.10 0.18
0.27 0.35 0.64
1.05 1.11 1.29
1.41 1.55
2.17
2.46
2.99
3.65
3.40
3.79
4.67
5.10
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q14
BSAS Average Daily Value (RM bil)
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DISCLAIMER :
Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this presentation. Whilst the
Company endeavours to ensure that the contents in this presentation are accurate, complete or have been obtained from sources believed
by the Company to be accurate and reliable, neither the Company nor the presenter make any warranty, express or implied, nor assume
any legal liability or responsibility for the accuracy, completeness or currency of the contents of this presentation. In no event shall the
Company be liable for any claim, howsoever arising, out of or in relation to this presentation."
© Bursa Malaysia 2013
Thank You
KOAY LEAN LEE
603-2034 7306
MUHAMMAD ALI
603-2034 7673
LIM SIEW CHING
603-2034 7277
NURHAFIZAWATI HANAFFI
603-2034 7484
INVESTOR RELATIONS CONTACT INFORMATION
E-mail : [email protected]
Fax : 603-2732 6160