MBKET’s 1H21 Earnings Surge 85% as Brokerage Fees and Service Income Increase

Maybank Kim Eng Securities (Thailand)’s net profit for the six-month period ended June 30, 2021 was Baht 448.04 million, increase of 85.38% or Baht 206.35 million from net profit of Baht 241.69 million for the same period of last year.

 

Mr. Arapat Sangkharat, Deputy Chief Executive and Officer in Charge, Maybank Kim Eng Securities (Thailand) Plc. disclosed the Company’s net profit for the six-month period ended June 30, 2021 was Baht 448.04 million, increase of 85.38% or Baht 206.35 million from net profit of Baht 241.69 million for the same period of last year. While the Company’s net profit for the three-month period ended June 30, 2021 was Baht 171.31 million, increase of 60.07% or Baht 64.29 million from net profit of Baht 107.02 million for the same period of last year.

 

The Company would like to clarify that the main variances comparing for the first half year 2021 performance to last year were our Brokerage fees income increased by 27.60% or Baht 289.63 million, from Baht 1,049.51 million to Baht 1,339.14 million. The reasons were as follows: Brokerage fees from Securities Business increased by 33.40% or Baht 316.35 million, from Baht 947.19 million to Baht 1,263.54 million as a result from the average daily trading value increased by 43.30% from Baht 68,616.75 million per day to Baht 98,327.80 million per day coupled with the proportion of retail brokerage fee which is the main contribution to the Company revenue increased from 42.92% to 48.12%. As a result, the average trading value of retails increased by 60.68% from Baht 29,447.68 million per day to Baht 47,317.71 million per day. Brokerage fees from Derivatives Business decreased by 26.11% or Baht 26.72 million, from Baht 102.32 million to Baht 75.60 million.

Fee and service income increased by 238.50% or Baht 45.10 million, from Baht 18.91 million to Baht 64.01 million derived from increase in underwriting fee of Baht 11.91 million, increase in financial advisory fee of Baht 9.39 million and increase in other service fees of Baht 23.80 million. Other income increased by 7.38% or Baht 27.61 million, from Baht 373.89 million to Baht 401.50 million.

It was derived from increase in interest income on margin loans by Baht 39.88 million, increase in gain and returns on financial instruments of Baht 22.23 million and increase in other income of Baht 2.68 million against with decrease in interest income on bank deposits and government bonds by Baht 37.18 million.

“The overall performance of the company in the first half of this year 2021 can be considered satisfactory and meet the expected goals. Although the economy continues to be impacted by the Covid-19 pandemic, market sentiment and investment activities remain strong.  To meet growing and more diversified investment needs of our retail customers, we have recently broadened product and service offerings to include global equities and global funds.  And in the coming months, we will introduce structured products and new digital platform,” added Mr. Arapat.