KUALA LUMPUR: ECM Libra Financial Group Bhd's earnings surged 250% to RM45.84 million in the fourth quarter ended Jan 31, 2011 from RM13.12 million a year ago, boosted by higher brokerage and fee income and also from trading and investment securities.
It said on Tuesday, March 29 revenue doubled to RM105.84 million from RM46.79 million a year ago'' while earnings per share were 5.61 sen compared with 1.6 sen. It proposed dividend of 4.25 sen per share.
ECM Libra said pre-tax profit was RM60.33 million compared with RM16.13 million. 'This is largely contributed by net brokerage income of RM14.6 million, fee income of RM6.7 million, net gain from trading and investment securities of RM67.2 million as well as net interest income of RM7.8 million; partially offset by operating expenses of RM37.6million and impairment allowance of RM2.1 million made on loans, advance and financing,' it said.
For the financial year ended Jan 31, 2011, net profit rose 59.7% to RM65.21 million from RM40.81million in the previous financial year. Revenue rose 60.2% to RM214.64 million from RM133.96 million.
It posted a two fold increase in operating profit to RM96 million compared to RM49 million a year ago. Pre-tax profit surged to RM87 million this year from RM46 million last year.
ECM Libra chairman Datuk Mohd Ali Abd Samad said the sharp increase in operating profits was especially meaningful in the context of the group's investment bank subsidiary which has a capital adequacy ratio of 83%, one of the highest in the banking industry.
"The investment bank will seek to utilise this excess capital better in the coming years but will continue to be judicious and prudent in building a more substantial asset base. What it means though, is that the investment bank is extremely well capitalised and has substantial room to grow its business,' he said.
It said on Tuesday, March 29 revenue doubled to RM105.84 million from RM46.79 million a year ago'' while earnings per share were 5.61 sen compared with 1.6 sen. It proposed dividend of 4.25 sen per share.
ECM Libra said pre-tax profit was RM60.33 million compared with RM16.13 million. 'This is largely contributed by net brokerage income of RM14.6 million, fee income of RM6.7 million, net gain from trading and investment securities of RM67.2 million as well as net interest income of RM7.8 million; partially offset by operating expenses of RM37.6million and impairment allowance of RM2.1 million made on loans, advance and financing,' it said.
For the financial year ended Jan 31, 2011, net profit rose 59.7% to RM65.21 million from RM40.81million in the previous financial year. Revenue rose 60.2% to RM214.64 million from RM133.96 million.
It posted a two fold increase in operating profit to RM96 million compared to RM49 million a year ago. Pre-tax profit surged to RM87 million this year from RM46 million last year.
ECM Libra chairman Datuk Mohd Ali Abd Samad said the sharp increase in operating profits was especially meaningful in the context of the group's investment bank subsidiary which has a capital adequacy ratio of 83%, one of the highest in the banking industry.
"The investment bank will seek to utilise this excess capital better in the coming years but will continue to be judicious and prudent in building a more substantial asset base. What it means though, is that the investment bank is extremely well capitalised and has substantial room to grow its business,' he said.
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