The decline was due to lower overall trading revenue of RM377.1 million in FY2022, a 30.7% drop compared to FY2021.
Total operating expenses in FY2022 increased marginally by 1.4% to RM292.7 million from RM288.6 million in FY2021.
Its net profit for the fourth quarter ended Dec 31, 2022 fell by 24.55% to RM49 million from RM64.95 million a year ago.
Revenue fell 11.79% to RM145.70 million from RM165.18 million in Q4 2021, it said in a filing today.
Basic earnings per share dipped to 6.1 sen from eight sen previously.
The board declared a final dividend of 11.5 sen per share amounting to approximately RM93.1 million. This brings the total dividend payout for FY2022 to 26.5 sen per share, which includes the interim dividend of 15 sen per share paid out in August 2022.
Derivatives market a bright spot
Its derivatives market, however, rose by 11.3% to RM97.2 million in FY2022 compared to RM87.3 million previously, due to higher collateral management fees earned, and higher number of FCPO and FKLI contracts traded.
Bursa chairman Abdul Wahid Omar said the exchange enjoyed another year of resilient performance despite operating conditions resulting in the softening of trading in the securities market.
In terms of market performance, the FBMKLCI benchmark index fell 4.6% in 2022 to 1,495.5 points from its opening of 1,567.5.
Market valuation however remained appealing, with forward price-earnings of 14.5 times being one of the lowest in the region, making the exchange an appealing investment destination, he added.
“We had a very active listing interest on Bursa with 35 IPOs recorded in FY2022 that raised RM3.5 billion in total, compared to 30 IPOs in FY2021.
“These numbers show both companies and investors are confident with Malaysian capital markets and see Bursa as a worthy platform for fundraising and investing,” Abdul Wahid said.
Bursa Malaysia CEO Umar Swift says the exchange’s derivatives market are offering more products and better access for global traders to participate. This recognition, together with the After-Hours (T+1) Night Trading Session (After Hours Trading) will generate greater trading volume.
Improving delivery of ‘richer data’
Umar said Bursa Malaysia will continue improving the delivery of richer data to clients to empower the industry to undertake analytics or offer better products or services.
The market data business segment improved in FY2022, delivering a 12.5% growth to RM60.8 million compared to RM54 million previously.
Bursa has also recently signed MoUs with Companies Commission of Malaysia (CCM) and the statistics department to collaborate on mutual data sharing arrangement with the goal of unlocking revenue opportunities.
“We are becoming a multi-asset exchange and diversifying our revenue streams,” Umar said.
“Amongst our priorities for 2023 as well, is to help develop the carbon market ecosystem, and strengthen our engagement with listed companies to raise their understanding and improve their ESG practices and disclosures,” he added.
Apart from financial KPIs, it has 39 IPOs in the pipeline with a total market capitalisation of RM10 billion.
The exchange also intends on launching a Bursa Gold Dinar product, and a new debt fundraising solution service for small and medium enterprises.
At 5pm today, Bursa Malaysia fell 7 sen to RM6.71, giving a market capitalisation of 5.43 billion.