KENANGA ANNUAL REPORT 2019

K E N A N G A I N V E S T M E N T B A N K B E R H A D A n n u a l R e p o r t 2 0 1 9 8 DEAR SHAREHOLDERS, For the Financial Year Ended 31 December 2019 (“ FYE2019 ”), Kenanga Investment Bank and Its Group of Companies (“ Kenanga Group ” or “ the Group ”) recorded a Profit Before Tax (“ PBT ”) of RM43.0 million, relative to RM28.9 million from the year before. This was mainly attributed to a reversal of impairments that occurred in FYE2018, and higher management fee income, as well as trading and investment gains from our fixed income portfolio. IZLAN IZHAB Chairman Amid challenging market conditions in 2019, with the Malaysian economy registering the slowest growth in 10 years of 4.3%, Kenanga Investment Bank Berhad (“ KIBB ”) continued to demonstrate its resilience as it drew from its long-standing experience serving Malaysia’s capital market. On the back of these results, the Board of Directors is pleased to declare a dividend of 3.25 sen per share, amounting to dividend payable of approximately RM22,707,344 for FY2019. I am confident that the Group will continue to build on the strengths that have made it the largest independent investment bank in Malaysia to deliver sustainable growth for all stakeholders. Throughout the year, of the many laudable successes, I am most pleased to note the continued momentum behind solidifying corporate governance within the organisation, fortifying its checks and balances that are paramount in ensuring professional conduct and decision making, and reinforcing the foundation for a sustainable journey. TECHNOLOGY GOVERNANCE With the burgeoning adoption of technologies within the organisation to meet the changing demands of customers, and transform the way we work to deliver greater efficiencies, a Group Board Digital Innovation & Technology Committee was established to provide oversight on the Group-wide technology agenda, as well as to address associated vulnerabilities that may surface. CHAIRMAN’S MESSAGE