KENANGA ANNUAL REPORT 2018

12 KENANGA INVESTMENT BANK BERHAD GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Dear Shareholders, 2018 was a turbulent year for the Malaysian capital markets. The benchmark FBMKLCI which rallied to a high of 1,896.03 in April, lost momentum towards middle of the year weighed down by uncertainties around domestic economic conditions, and compounded by external factors such as oil prices, the US-China trade dispute and the fraught Brexit negotiations. Under these circumstances, Kenanga Investment Bank Berhad and its Group of Companies (“ Kenanga Group ” or “ the Group ”) registered a marginal increase in revenue to RM669.37 million for the Financial Year Ended 31 December 2018 mainly due to higher income from trading and investment activities. The Profit Before Tax (“ PBT ”) of RM28.85 million was however lower compared to the previous year of RM40.62 million as it was affected by RM30.10 million in impairment on some of its margin accounts. Even though our margin positions are now more stabilised, we continue to prioritise plans to recover from the setback and remain steadfast in our commitment towards the pursuit of enterprise growth and the creation of long-term shareholder value. Our focus on our strategic objectives is resolute, as we work towards achieving our aspirations. DATUK CHAY WAI LEONG Group Managing Director