KUALA LUMPUR: K & N Kenanga Holdings Bhd (K&N Kenanga) will focus on its main profitable businesses namely equity broking, corporate advisory, treasury, fixed income, asset management and futures trading going forward.
These activities have proven their profitability in the past and will spearhead the Group's activities, it said.
It said wholly owned subsidiary Kenanga Investment Bank Berhad (KIBB) in its own stead ould concentrate on expanding its retail and institutional client business by expanding its global trading capabilities, offering more extensive research coverage and upgrading its IT infrastructure and system
'These underlying businesses continue to record positive growth and profits but their achievements have been overshadowed by the recent impairments.
'Going forward, the group intends to capitalise on its strengths and ensure sustainable profitable growth,' said K&N Kenanga in a statement Friday, Dec 24.
It said the additional impairments of RM44.3 million that would be reflected in the financial results of KIBB in the fourth quarter stem from write-downs in collateral values relating to a loan and an investment in an associate company.
It said while the impairments would reflect negatively on the group's profit and loss figures, its operating profits for the 9 months period ended 30 September 2010, excluding the impairment figures,'' remained positive and healthy at RM40.4 million against RM26.9 million for the same corresponding period in 2009.
The pre-impairment operating profits for the group represent a growth of 50.2%, it said.
K&N Kenanga said the bank, being the main contributor towards the profitability and growth of the Group, recorded for the same period, pre-impairment operating profits of RM32.4 million for 2010 against RM20.2 million for the previous year, representing a growth of 60.3%.
It said the Risk Weighted Capital Ratio (RWCR), a key capital risk indicator to measure a bank's ability to absorb unexpected loss, would improve marginally from 37.45% as at Sept 30, 2010 to approximately 37.93% after the RM40 million capital injection and impairment provisions, which is considered a healthy and strong ratio in relation to the bank's asset profile.
As part of the process to strengthen its capital management, the bank had on Nov 1, 2010 increased its issued and paid-up capital by an additional RM40 million, from RM580 million to RM620 million, it said.
Accordingly, the bank group's capital base, based on the position as at Sept 30, 2010 increased from RM578 million to RM618 million, it said.
'Continuing its focus on maintaining a highly liquid position, its liquid-asset ratio increased to 84.6% as at end-September 2010 through significant holdings of short term funds and government securities.
'This liquid asset ratio remains unaffected by the impairments and indicates a strong liquidity buffer vis-''-vis industry standards, and is in line with the Bank's effort to adopt a prudent and dynamic approach in its liquidity risk management,' it said.
These activities have proven their profitability in the past and will spearhead the Group's activities, it said.
It said wholly owned subsidiary Kenanga Investment Bank Berhad (KIBB) in its own stead ould concentrate on expanding its retail and institutional client business by expanding its global trading capabilities, offering more extensive research coverage and upgrading its IT infrastructure and system
'These underlying businesses continue to record positive growth and profits but their achievements have been overshadowed by the recent impairments.
'Going forward, the group intends to capitalise on its strengths and ensure sustainable profitable growth,' said K&N Kenanga in a statement Friday, Dec 24.
It said the additional impairments of RM44.3 million that would be reflected in the financial results of KIBB in the fourth quarter stem from write-downs in collateral values relating to a loan and an investment in an associate company.
It said while the impairments would reflect negatively on the group's profit and loss figures, its operating profits for the 9 months period ended 30 September 2010, excluding the impairment figures,'' remained positive and healthy at RM40.4 million against RM26.9 million for the same corresponding period in 2009.
The pre-impairment operating profits for the group represent a growth of 50.2%, it said.
K&N Kenanga said the bank, being the main contributor towards the profitability and growth of the Group, recorded for the same period, pre-impairment operating profits of RM32.4 million for 2010 against RM20.2 million for the previous year, representing a growth of 60.3%.
It said the Risk Weighted Capital Ratio (RWCR), a key capital risk indicator to measure a bank's ability to absorb unexpected loss, would improve marginally from 37.45% as at Sept 30, 2010 to approximately 37.93% after the RM40 million capital injection and impairment provisions, which is considered a healthy and strong ratio in relation to the bank's asset profile.
As part of the process to strengthen its capital management, the bank had on Nov 1, 2010 increased its issued and paid-up capital by an additional RM40 million, from RM580 million to RM620 million, it said.
Accordingly, the bank group's capital base, based on the position as at Sept 30, 2010 increased from RM578 million to RM618 million, it said.
'Continuing its focus on maintaining a highly liquid position, its liquid-asset ratio increased to 84.6% as at end-September 2010 through significant holdings of short term funds and government securities.
'This liquid asset ratio remains unaffected by the impairments and indicates a strong liquidity buffer vis-''-vis industry standards, and is in line with the Bank's effort to adopt a prudent and dynamic approach in its liquidity risk management,' it said.
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