1Q 2012 Financial Results - listed company · 1Q 2012 Financial Results 19 April 2012 . MARKET...
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1Q 2012 Financial Results 19 April 2012
Transcript of 1Q 2012 Financial Results - listed company · 1Q 2012 Financial Results 19 April 2012 . MARKET...
1Q 2012 Financial Results
19 April 2012
MARKET PERFORMANCE
2
We remain accessible
SECURITIES MARKET OVERVIEW 3
DERIVATIVES MARKET OVERVIEW 4
ISLAMIC MARKET OVERVIEW 5
1Q 2011 4Q 2011 1Q 2012 1Q 2011 4Q 2011 1Q 2012 1Q 2011 4Q 2011 1Q 2012
42
27 34
ADV(OMT+DBT) (RM bil)
Average Daily Value (ADV) & Velocity
Velocity (%)
Market Cap (RM tril)
FBMKLCI
Fund Raised for IPO & Secondary Market (RM bil)
No. of IPO
Market Capitalisation & FBMKLCI IPO Activity
2.23
2.76
1.31
1,545.13 1,596.33 9
2 2
3
-12% 3%
1,530.73
1.36
1.28
2.59
2.08 1.97
1.41 40% 6% 25%
-6%
SECURITIES MARKET OVERVIEW Good 1Q Amidst Cautious Outlook
4
Quarterly Average Daily Contracts (000’)
Others
1Q11 4Q11 1Q12
28%
71%
Crude Palm Oil Futures
FMBKLCI Futures
Open Interest (000’)
1Q 2011 4Q 2011 1Q 2012
Crude Palm Oil Futures
70%
12%
17%
FBMKLCI Futures
Others
36.79 34.78
31.02 136.20
152.42
174.29
DERIVATIVES MARKET OVERVIEW Higher Open Interest But Lower ADC (On The Back Of Lower Volatility)
-16%
-11% 14%
28%
1Q 2011 4Q 2011 1Q 2012 1Q 2011 4Q 2011 1Q 2012
19 19 21
Sukuk Listing
No. of Sukuk
28.1
Bursa Suq Al-Sila’
1.05
ADV Commodity Traded (RM bil)
1.55
Value (USD$ bil)
5
36
55 60
No. of Trading Participants
1Q 2011 4Q 2011 1Q 2012
846
88 89 89
No. of Shari’ah Compliant Stocks
% of Shari’ah compliant Stocks
Number of Shari’ah Compliant Stocks
30.1
839 28.5 1.42
834 6%
7%
9%
48%
1%
-1%
ISLAMIC MARKET OVERVIEW Bursa Suq Al-Sila’ Gaining Momentum…Growth On Track
STRATEGY OUR STRATEGIC INTENTS 7
BUSINESS HIGHLIGHTS 8
6
We are a progressive Exchange
B U I L D I N G A C O M P E T I T I V E M AR K E T P L A C E
Create a More Facilitative TRADING ENVIRONMENT
Facilitate More TRADABLE ALTERNATIVES
Reshape MARKET STRUCTURE & FRAMEWORK
REGIONAL MARKETPLACE with Global Access (Centre of ASEAN)
F O U R S T R AT E G I C I N T E N T S
M AL AY S I A’ S M O S T AD M I R E D P L C ( A H i g h P e r f o r m a n c e O r g a n i s a t i o n )
7
OUR STRATEGIC INTENTS
8
Local Participants entry requirements for Derivatives trading eased
New Derivatives Clearing & Settlement System launched
Securities Borrowing & Lending (SBL) Enhancement – to facilitate lender for SBL transaction to sell loaned securities before recalling the securities
* In 1Q 2012, FBM KLCI Index hit a record high at 1,596.33 on 30 March 2012
* FBM KLCI recorded a new all time high at 1,606.63 on 3 April 2012
1Q 2012 BUSINESS HIGHLIGHTS
FINANCIAL REVIEW
PROFIT & ROE TREND 10
QUARTERLY SNAPSHOT 11
OPERATING REVENUE 12 STABLE REVENUE 13 OPERATING EXPENSES 14
9
We believe in being responsible
18.6 16.3 18.2
14.8 18.4
107.8
92.5 96.1
84.9 100.5
40.5 35.7 38.6 31.3
40.8
1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012
49.9 51.1 49.5
53.7
47.7
Total Operating Revenue (RM mil)
Annualised ROE (%)
PATAMI (RM mil)
Cost to Income Ratio (%)
10
PROFIT & ROE TREND Highest Quarterly PATAMI Over The Last 5 Quarters
11
49.9
53.7
47.7
1Q 2011 4Q 2011 1Q 2012
Cost-to-income ratio (%)
107.8
84.9
100.5
1Q 2011 4Q 2011 1Q 2012
Operating revenue (RM mil)
-7%
8.3
10.7 10.0
1Q 2011 4Q 2011 1Q 2012
Other income (RM mil)
57.9
51.4 52.7
1Q 2011 4Q 2011 1Q 2012
Operating expenses (RM mil)
40.5
31.3
40.8
1Q 2011 4Q 2011 1Q 2012
PATAMI (RM mil)
18.6
14.8
18.4
1Q 2011 4Q 2011 1Q 2012
ROE (%)
1% -1% -4%
-9% 21%
• 1Q12 vs 4Q11 Cost to income ratio improved by 11%. • 1Q12 vs 4Q11 PATAMI up 30% on the back of higher trading activity on the Securities market.
18% -7% 3%
30% 24% -11%
QUARTERLY SNAPSHOT Further Improvement In Cost Management Resulting In Higher PATAMI
107.8
100.6 98.8 98.8 100.1
100.5
-7.2
-1.8 +1.3
+0.4
1Q 2011 1Q 2012
Growth contribution by revenue streams:
12
7%
12%
14%
5%
Commentaries
• Lower level of trading activities resulted in a lower ADV of RM1.97 bil in 1Q12 (1Q11:RM2.23 bil).
• Low volatility of the FBM KLCI and a drop in demand for Malaysian CPO resulted in a lack of interest in the corresponding futures market & lower derivatives volume from 2.17mil contracts in 1Q11 to 1.83 mil in 1Q12.
4%
57.7 50.5
13.0 11.2
27.5 28.8
9.6 10.0
1Q 2011 1Q 2012
Derivatives trading revenue
Total RM107.8mil
Total RM100.5mil
Securities trading revenue
Stable revenue
Other operating revenue
(RM mil)
OPERATING REVENUE Lower YoY Quarterly Revenue From Both Securities & Derivatives
27.5 27.5 27.4 27.4
28.0
28.6 28.7 28.8 +0.2 -0.4 +0.7
+0.6 + 0.1 +0.1
1Q 2011 1Q 2012
Growth contribution by revenue streams:
10.0 10.2
7.8 7.4
4.4 5.1
1.8 2.4 2.9 3.0 0.6
0.7
1Q 2011 1Q 2012
13
Total RM27.5 mil
Total RM28.8 mil
5%
2%
4%
13%
Commentaries
• Improved information services income was a result of the revision in fee structure.
• Higher market access fees due to higher number of subscribers.
36%
4% 11%
Listing fees
Depository services
Information services
Access fees
Broker services & co-location inc.
Participants fees
(RM mil)
STABLE REVENUE New Initiatives In Place to Grow Stable Income
25.9 24.3
9.8 8.0
5.4 4.3
3.8 4.0
3.0 2.5
10.0
9.6
1Q 2011 1Q 2012
57.9
56.3 54.5
53.3 53.3 296.4 52.7 52.7
-1.6
-1.8
-1.1
+0.2
-0.5 -0.4
1Q 2011 1Q 2012
Decrease in expenses:
14
Total RM57.9 mil
Total RM52.7 mil
21%
6%
18%
Commentaries • Lower staff costs due to reduction in number of employees.
• Lower depreciation & amortisation due to full depreciation of certain IT assets
in 4Q11. • Lower Globex service fees charged in line with lower derivatives volume.
• Lower marketing development expense due to lower BSAS marketing
expenses & lower POC expenses.
4%
16% 4%
9%
Staff costs
Depreciation & amortisation
Marketing & business development
IT maintenance
Globex service fees
Other operating expenses
(RM mil)
OPERATING EXPENSES Prudent Cost Management Bearing Results
OUR TARGETS & CONCLUSIONS
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We continue to innovate
MIDTERM KPIS 16 PROSPECT & CONCLUSION 17
PROFITABILITY
MIDTERM KPIs Committed To Achieve The Targets Set
LIQUIDITY
Average PAT growth rate of at least 20% p.a. for three years (2011 – 2013)
1. SECURITIES
2. DERIVATIVES
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Growth in Average Daily Value (ADV) traded p.a. to be at par with the leading listed exchanges in the region
50,000 Average Daily Contracts (ADC) in 2013
Despite the debt crises in the U.S. and Europe and their impact on markets across the globe, recent data seem to suggest that the global outlook is in better shape than initially expected.
1Q2012 saw improvements in both trading volume and value, compared to the preceding quarter.
In line with our Strategic Intents, we will continue to build a dynamic and vibrant market place by focusing our efforts in the following four areas:-
Improving market accessibility New product offerings
Improving market structure and framework Regionalisation
Upcoming initiatives for the above includes new features for BTS, new product offerings (OCPO, OKLI & retail bonds) and ASEAN Links
We have put in place various initiatives and is on track to achieve our three years targets.
We remain confident that Malaysia's economy will continue to register satisfactory performance & the implementation of the ETP projects will continue to have a positive impact on the local bourse.
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PROSPECT & CONCLUSION
Additional Information Securities Market Trading Activity 19
Securities Market Trading Participation 20 Securities Market Foreign Ownership 21
Bursa’s Potential To Grow Its Velocity 22
Derivatives Market Activity 23
Derivatives Market Demography 24
18
68 54 50
41 46 31 25 32
23
48 36
28 35 28 31 37 42 30 34 27 34
Securities Market Trading Activity
19
57
31 40 39
20 23 34 32
25 32
53
34 34 33 33 34
1,924
497 805 911
350 472 748
874 718
1,019
2,179
1,181 1,129 1,454
1,699 1,841
-
400
800
1,200
1,600
2,000
2,400
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q 2012
RM mil
2,610 2,303
2,069 1,751 1,907
1,187 823 854
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
- 400 800
1,200 1,600 2,000 2,400 2,800
1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 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
RM mil
Quarterly ADV Traded & Velocity
Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)
Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)
Annual ADV Traded & Velocity
346
806
283 369 392 442 534
Securities Market Trading Participation
20
From 2006 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based on Bursa’s internal system.
65 63 58
73 73 74 78
35 37 42 27 27 26 22
2006 2007 2008 2009 2010 2011 1Q 2012
66 63 76
67 73 74 71
34 37 24 33 27 26 29
2006 2007 2008 2009 2010 2011 1Q 2012
357
806
496 323
392 437 425
Retail (%)
Institutions (%)
Local (%)
Foreign (%)
Retail ADV Traded (RM mil)
Foreign ADV Traded (RM mil)
Retail vs Institutions Foreign vs Local
0.3
Securities Market Foreign Ownership
6.6
2.1
1.1
0.3
13.3
Singapore
Hong Kong
UK
USA
Mid-East
Others
23.8
76.2
Foreign Ownership by Nationality (%)
Foreign Nominees
Based on Market Capitalisation (as at month end)
20.4
20.6
20.8
21.8
21.9
22.0
21.7
22.
1
22.2
22.7
22.4
22.5
22.8
(%)
21
Bursa’s Potential To Grow Its Velocity YTD March 2012
22
22 34
50 55 55 61 64 76 76
99 107 114 119
166
235
Source: World Federation Exchanges (WFE)
(%)
66
85
159
125
156
123 132
152
174
2004 2005 2006 2007 2008 2009 2010 2011 1Q 2012
148
117
142
123 129
115 114
132 136
162
171
152
174
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
23
Derivatives Market Activity Total Annual Contract (Million)
FBMKLCI Futures
Crude Palm Oil Futures
Others
Open Interest (000’)
28%
24
``
71%
Quarterly (Average Daily Contracts 000’)
FMBKLCI Futures
Crude Palm Oil Futures
Others
Open Interest (000’)
28%
71
%
29
24 22 24 23 25
28
37 32
2.6 2.5
4.2
6.2 6.1 6.1 6.2 34
8.4
35
23
1.8
31
Derivatives Market Demography
* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange.
31 19 14 16 16 13 15 15 20 21 19 13
45
48 45 43 40
40 41 46 52 44 42
34
3
6 5
3 3 2 2
2
3 2 2
10
14
23
31 37 40
45 42 37
26 33
37 43
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 29 Feb 2012
(%) FKLI
40 38 35 33 35 31 25 27 36 34 34 30
15 21 26 24 23
27 34 38
27 26 24 30
1 1 27
21 18 20 22 25 22
15 17 15 13 12
14 14 17 20 18 16 18 20 19 25 28 27
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 29 Feb 2012
(%) FCPO
Local
Domestic Retail
Domestic Institutions
Foreign Institutions Local Domestic Retail Domestic Institutions
Foreign Institutions
24
Foreign Retail
KOAY LEAN LEE [email protected]
603-2034 7306
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 2012
INVESTOR RELATIONS CONTACT INFORMATION
E-mail : [email protected] Fax : 603-2026 3684
MUHAMMAD ALI [email protected]
603-2034 7673
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LIM SIEW CHING [email protected]
603-2034 7277
