1H 2016 Financial Results Analyst & Media Briefing · 2Q2015 2Q2016 1H2015 1H2016 120.7 122.2 240.4...
Transcript of 1H 2016 Financial Results Analyst & Media Briefing · 2Q2015 2Q2016 1H2015 1H2016 120.7 122.2 240.4...
UNLOCKING THE POTENTIAL
OF OUR MARKETPLACE
DRIVING
SUSTAINABILITYAND INCLUSIVENESS
1H 2016 Financial Results
Analyst & Media Briefing
25 July 2016
Datuk Seri Tajuddin Atan
Chief Executive Officer
Rosidah Baharom
Chief Financial Officer
AGENDA
KEY FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE
FINANCIAL REVIEW
FOCUS AREA & CONCLUSION
APPENDICES
2
KEY FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE
FINANCIAL HIGHLIGHTS FOR 1H2016
HALF YEARLY FINANCIAL TREND
SECURITIES MARKET OVERVIEW
DERIVATIVES MARKET OVERVIEW
ISLAMIC CAPITAL MARKET OVERVIEW
3
Financial Highlights For 1H2016Improved performance despite global & domestic market challenges
Financial Items 1H2016 1H2015
1H2016
vs.
1H2015
Operating Revenue (RM million) 248.4 240.4 3.3%
Operating Expenses (RM million) 123.6 117.8 5.0%
PATAMI (RM million) 99.4 96.5 3.0%
EPS 18.6 sen 18.1 sen 2.8%
Cost to Income Ratio 47% 46% 1 percentage point
Annualised ROE 25% 25%
Higher operating revenue contributed by all market segments.
The increase in operating expenses is mainly due to higher manpower and technology
costs.
Interim dividend of 17 sen, equivalent to 91.7% payout to be paid on 19 August 2016.
1H2016 vs. 1H2015:
4
13 14
18
16
18 17
21
19
23
27
25 26
25
55 55
50 52
48 50
45
52
48
44 46 46 47
158
174
200
181
197 191
224 216
231 241 240 247
248
55 57
77 67
78 72
93 80
92 106
97 102 99
1H2010 2H2010 1H2011 2H2011 1H2012 2H2012 1H2013 2H2013 1H2014 2H2014 1H2015 2H2015 1H2016
5
Half Yearly Financial TrendStrong Operating Revenue performance
Operating Revenue
(RM mil)
PATAMI
(RM mil)
Cost to Income
Ratio (%)
ROE (%)
2928
1,659 1,660
1H2015 1H2016
0.1%
Securities Market OverviewLower ADV influenced by market sentiments
Average Daily Value (“ADV”)
(OMT)(RM mil)
Market Capitalisation (RM bil) Fund Raised from New Listings &
Secondary Market (RM bil)
1,008 965
443413
543 532
1H2015 1H2016
1,994 1,910
Velocity (%)
1,706.64
1,654.08
FBMKLCI
2.9
0.4
8.1
7.1
1H2015 1H2016
No. of New Listing
Fund raised from new listings
Fund raised from secondary market
ADV of Domestic Institutions
ADV of Retail
ADV of Foreign Institutions Market Capitalisation
5 5
31.9%
6
4.2%
10,425 12,057
44,648 47,475
241
257
1H2015 1H2016
Crude Palm Oil Futures
Volatility of Crude Palm Oil Prices
Derivatives Market OverviewContinuous growth in FCPO and FKLI contracts
OthersFBMKLCI Futures
Volatility of FBMKLCI
18%19%
14%11%
81%
19%
Average Daily Contracts (“ADC”)
& VolatilityOpen Interest (No. of contract)
79%
20%
8.1%
7
31 Dec 2015
230,376
31 Mar 2016
282,871
26 May 2016
337,267
01 Sept 2010
111,548
30 Jun 2015
228,787
1%
59,79055,314
Islamic Capital Market OverviewHigher BSAS trades following the adoption of Murabaha principle and
higher usage of Tenor Based Pricing
20.824.1
14.2
29.2
30 JUNE 2015 30 JUNE 2016
35.0
53.3
11.3
14.4
1.5
2.6
1H2015 1H2016
12.8
17.0
33.6%
106
116
No. of Shariah Compliant Stocks (%)No. of Trading Participants
Bursa Suq Al-Sila’ (“BSAS”)
ADV (RM bil)Market Capitalisation of Shariah
Compliant Stocks (RM bil)
No. of Sukuk
Value of Listed Sukuk (USD bil)
74% 74%21
23
52.3%
Domestic Foreign Market Capitalisation of Shariah
Compliant StocksDomestic Foreign
8
1,023 1,034
30 JUNE 2015 30 JUNE 2016
1.2%
FINANCIAL REVIEW
9
Financial Snapshot
Operating Revenue
Operating Expenses
Dividends
10
49.5 49.5
96.5 99.4
2Q2015 2Q2016 1H2015 1H2016
120.7 122.2
240.4 248.4
2Q2015 2Q2016 1H2015 1H2016
3.0%
3.3%
1.3%
57.5 60.3
117.8123.6
2Q2015 2Q2016 1H2015 1H2016
4.8%
Financial SnapshotMarginal growth in 1H16 Operating Revenue & PATAMI amidst challenging period
Operating revenue (RM mil) Operating expenses (RM mil)
PATAMI (RM mil)
4546
4647
2Q2015 2Q2016 1H2015 1H2016
Cost-to-income (%)
1 percentage point
5.0%
1 percentage point
Operating RevenueGrowth contributed mainly by Derivatives trading and Market Data
11
Lower Securities trading revenue was due to lower ADV seen YoY.
Growth in Derivatives trading revenue was attributed to higher number of contracts and
higher open interest position.
BSAS trading revenue increased due to higher conversion of deposits to Murabaha
principle and increasing usage of tenor based pricing.
Market data revenue increased due to higher number of subscribers.
240.4
248.4
-3.3
+6.1+ 1.3
+ 1.2+ 0.9
+ 1.7+ 0.2
- 0.1
1H2015 1H2016
4.7%
2.9%
(RM mil)
115.9 112.6
40.0 46.1
7.5 8.8
25.8 27.0
18.7 19.616.2
17.910.410.6
5.95.8
1H2015 1H2016
3.3%
Total
RM248.4mil
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
Market Data
Member Services & Connectivity
BSAS Trading Revenue
Total
RM240.4 mil
17.6%
Growth contribution by revenue streams:
4.8%
15.1%
Other Operating Revenue*
Note* - Other operating revenue mainly includes conference & exposition income
1.8%
10.7%
1.6%
63.9 66.6
11.712.1
7.1 6.58.8 8.4
10.8 11.8
15.518.2
1H2015 1H2016
Total
RM117.8 mil
Total
RM123.6 mil
5.0%
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses^
+ 2.7 + 0.4 - 0.6-0.4
+ 1.0
+ 2.7
1H2015 1H2016
9.2%
(RM mil)
3.8%
17.0%
3.4%
4.2%
Operating Expenses1H2016 operating expenses increased 5.0% YoY
Movement of expenses:
117.8
123.6
Note^ - Other operating expenses include building maintenance, professional fees, administrative expenses and CDS
expenses.
Staff cost increased due to annual increment.
Higher service fees due to higher YoY Derivatives ADC.
Higher other operating expenses mainly due to advisory fees.
7.6%
12
0.0000
2.0000
4.0000
6.0000
8.0000
10.0000
12.0000
JC
Y IN
TER
NA
TIO
NA
L
YT
L H
OSPIT
ALIT
Y
AM
AN
AH
RA
YA
REIT
ATLA
N H
LD
G B
HD
SA
PU
RA
RESO
UR
CES
ELSO
FT
RESEA
RC
H
BER
JA
YA
SPO
RTS
SC
H G
RO
UP B
HD
DIG
I.C
OM
BH
D
ZH
ULIA
N C
OR
P B
HD
DA
IBO
CH
I PLA
ST
IC
TO
MY
PA
K H
LD
G
EIT
A R
ESO
UR
CES
MA
XIS
BH
D
BIN
TU
LU
PO
RT
HLD
VS IN
DU
ST
RY
BH
D
SC
C
SU
NW
AY
CO
NSTR
UC
T
OR
IEN
TA
L F
OO
D IN
PR
EST
AR
IAN
G B
HD
KPJ H
EA
LT
HC
AR
E
XIN
HW
A H
OLD
ING
S
N2N
CO
NN
EC
T B
HD
SA
SBA
DI H
OLD
ING
S
BIO
ALPH
A H
OLD
ING
BU
RSA
MA
LA
YSIA
Dividend Yield – Bursa vs. other PLCs
@ 30 June 2016
3.9%
13
Source: Bloomberg and Bursa Malaysia
13.0 13.5 16.0 16.0 16.5 17.0
16.0 18.0 18.0
13.0 13.5
20.020.0
2011 2012 2013 2014 2015 2016
Payout
98% *
Payout
92%
Special Dividend (sen)
Interim Dividend (sen)
Final Dividend (sen)
Payout
95%
Payout
95%
Payout
92% *
Payout
93%
DividendsMaintained high dividend payout to shareholders
Proposed interim dividend of 17.0 sen. The entitlement and payment dates for the interim dividend are
9 August 2016 and 19 August 2016 respectively.
* Exclude special dividend
FOCUS AREAS & CONCLUSION
14
Highlights of 1H2016 Initiatives
Focus Areas
Moving Forward
15
Highlights of 1H2016 Initiatives
Create a More
Facilitative TRADING
ENVIRONMENT
SI 1
REGIONAL MARKETPLACE
with Global Access
(Centre of ASEAN)
Extended “Green Lane Policy” to eligible futures
brokers & eligible general clearing participants.
Facilitate More
TRADABLE ALTERNATIVES
Launched call and put warrants over the Standard
& Poor’s 500 Index.
Amended Listing Requirements to raise the
standards of disclosure of Corporate Governance
practices.
Launched the Equities Margining Framework.
Reshape
MARKET STRUCTURE &
FRAMEWORK
SI 2
SI 3
SI 4 Launched FTSE4GOOD ASEAN 5 Index.
Signed MoU with Taiwan Stock Exchange to
undertake joint study to explore capital market
opportunities.
Focus Areas
16
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
Create a More
Facilitative
TRADING
ENVIRONMENT
Reshape
MARKET
STRUCTURE &
FRAMEWORK
SI 1
Facilitate More
TRADABLE
ALTERNATIVES
SI 2 SI 3
REGIONAL
MARKETPLACE
with Global Access
(Centre of ASEAN)
SI 4
Moving Forward
SECURITIES MARKET• The second quarter saw reversals in foreign funds from the Malaysian equity market after a
strong inflow in the first quarter of the year.
• The Securities Market performance continues to be influenced by global and local economic and
market conditions.
• Domestic liquidity will continue to provide support to the equity market given the country’s
strong economic fundamentals and sound financial system.
DERIVATIVES MARKET• Derivatives Market activities will continue to be spurred by the volatility in commodity prices and
FBM KLCI.
ISLAMIC CAPITAL MARKET• Transactions on Bursa Suq Al-Sila’ are expected to be sustained with the demand for Murabaha
contracts to aid liquidity management.
Given the above factors, the Exchange remains cautiously optimistic on its performance for the
year, and is committed with its initiatives in making the Malaysian equity and derivatives markets
more attractive and vibrant.
17
UNLOCKING THE POTENTIAL
OF OUR MARKETPLACE
1H 2016 Financial Results
Analyst Media Briefing
25 July 2016
Q & A
Securities Market Trading Activity
Securities Market Trading Participation
Securities Market Foreign Ownership
Foreign Inflow/Outflow
Derivatives Market Activity
Derivatives Market Demography
Islamic Capital Market Activity
19
APPENDICES
23
4836
2835
28 3137 42
30 3427
3427 28 25 28
3731
25 30 29 30 28 30 28 29 30 29 27
2023
34 3225
32
53
34 34 33 3328 30 29 30 28
350 472 748
874 718
1,019
2,179
1,181 1,129
1,454 1,699
1,573
1,915 2,053 1,991 1,910
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16
Turnover Velocity (%)
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
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
1,430 1,643
2,308 2,002
1,686 2,068 2,053
2,196 1,901
2,081 1,913 1,933 2,042 1,981 1,842
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
20
346
806
283 369 392
442354
424
530464
413
6663
76
6773 74
77 7874 77 78
34 37 24 33 27 26 23 22 26 23 22
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16
65 6358
73 73 74 74 74 7673 72
35 37 42 27 27 26 26 26 24 27 28
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16
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 Institution Foreign vs Local
Securities Market Trading Participation
357
806
496
323392
437 404507 492
544 538
21
Securities Market Foreign Ownership
22.3
23.1
24.4
24.0
24.3
24.124.0
24.1 24.1
23.7
23.423.3
23.1
22.8 22.8
22.5
22.3 22.322.5
23.023.0 23.0
22.8
Based on Market Capitalisation (%)
Note: Previously, foreign shareholdings are computed based on the investor’s country of incorporation. To be more reflective of the
actual foreign shareholdings in the equity market, from January 2016 onward, the foreign shareholdings are computed based on the
nationality of investors. On this basis, we have adjusted all the numbers above accordingly.
22
Foreign Inflow/Outflow
Monthly foreign inflow/outflow from 2011 to 2016
-10,000
-5,000
0
5,000
10,000
2015
TNFO: RM19.7 bil
2011
TNFI: RM2.0 bil
2012
TNFI: RM13.6 bil
2013
TNFI: RM2.6 bil
2014
TNFO: RM6.9 bil
TNFI: Total Net Foreign Inflow
(RM mil)
TNFO: Total Net Foreign Outflow
-3,175 -2,840 -4,068 -2,374
608
-844 -1,193 -1,001
432
6,065
428
-4,282 -1,760
-6000
-4000
-2000
0
2000
4000
6000
8000
Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Monthly foreign inflow/outflow from Jun 2015 to Jun 2016
1H2016
TNFO: RM0.1 bil
23
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
1H
16
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
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
66
85
159
125
156
123 132152
214
196 196
230
293
18%
129
115
114
132
136
162
171152
174
146
172
214
196
213204
196
218
239
288
196
207
229235
283293
230
32
Quarterly Average Daily Contracts (’000)
3734
28
54
Total Annual Contract (mil)
Crude Palm Oil FuturesOthersOpen Interest (’000)
20%
79%
2.6 2.5
4.2
6.2 6.1 6.1 6.2
8.4
FMBKLCI Futures
24
`
`
82%
2325
3531
4042 44 45
42
9.6
46
10.7
42
50
Derivatives Market Activity
44
12.5
5655
60
51
14.1
6258
7.4
24
62
1%
31 19 14 16 16 13 15 15 20 21 19 15 18 20 18 15
45
48
45 43 4040
41 46
52 4442
2828
2423
22
3
6
53
32
2
2
3
22
21 2
54
14
23
3137 40
45 4237
2633
37
55 53 54 5559
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16
(%)FKLI
40 38 35 33 3531
25 2736 34 34 36 33 34 31 28
1521
2624
2327
3438
2726 24
1917 15
1517
4
6 43 2 1 1
1
11
1 11 1
2721 18
20 22 25 22 15 17
1513
12
10 15 21 21
14 14 17 20 18 16 18 20 1925 28
3239
35 32 33
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16
(%)FCPO
Local
Domestic Retail
Domestic Institutions
Foreign Institutions Local
Domestic RetailDomestic Institutions
Foreign Institutions Foreign Retail
Derivatives Market Demography
25
Islamic Capital Market Activity
26
0.8 0.9 1.1 1.1 1.3 1.5 1.6 1.8 2.6 2.4 2.7 3.2 3.7 3.7
5.9
8.5
10.4
12.0
14.4
16.9 16.1
12.7
0.2 0.2 0.2 0.3 0.3 0.7 0.9 1.2
1.1 1.0 1.1
1.5 1.4 1.5
1.4
1.4
1.5
1.6
1.6
2.1 2.6
2.7
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
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
BSAS Average Daily Value
Local ADV Foreign ADV
(RM bil)
www.bursamalaysia.com
RASMONA ABDUL RAHMAN
603-2034 7175
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 the presentation booklet 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 booklet to the recipient of this
presentation booklet and/or to any other third party.
© Bursa Malaysia 2016
E-mail : [email protected]
ADRINA CHE AHMAD
603-2034 7488
RAFIDAH AZIZ
603-2034 7262
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