KENANGA ANNUAL REPORT 2020

111 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD Other principal features of the ESS are as follows: (i) The employees eligible to participate in the ESS must be at least eighteen (18) years of age on the Award date and are employed by, and are on the payroll of the Kenanga Group and are confirmed in service. The ESS applies to the Bank and its non-dormant subsidiary companies. (ii) The entitlement under the ESS for the Executive Directors is subject to the approval of the shareholders in a general meeting and is not prohibited or disallowed by the relevant authorities or laws from participation in the Scheme. The ESS encompasses two (2) primary schemes in the form of Employees’ Share Option Scheme (“ESOS”) and Employee Share Grant Plan (“ESGP”). The actual allocation of share options to senior management of the Group is 37.42% as at 31 December 2020. More details of the ESS are as disclosed in Note 55 to the financial statements. ISSUANCE OF SHARES There were no new ordinary shares or debentures issued during the financial year. BUSINESS REVIEW FOR 2020 The profit before tax (“PBT”) of the Group and the Bank for the financial year ended 31 December 2020 (“FYE20”) are RM134.7 million and RM106.9 million, compared to PBT of RM43.0 million and RM40.4 million respectively in the previous financial year (“FYE19”). The performance of the Group’s respective business segments are analysed below: STOCKBROKING Stockbroking division registered higher PBT of RM86.8 million for FYE20 (FYE19: PBT of RM9.5 million) mainly due to higher net brokerage income and trading and investment income in 2020 on the back of significant increase in Bursa trading volume during the year. INVESTMENT BANKING Investment Banking registered a higher PBT of RM34.0 million for FYE20 (FYE19: PBT of RM24.7 million) mainly due to higher interest income from stronger treasury activities. INVESTMENT AND WEALTH MANAGEMENT Investment and Wealth Management registered a PBT of RM13.6 million (FYE19: PBT of RM5.2 million) mainly due to higher management and performance fee earned.