Declining stock brokering activities led HWANG-DBS MALAYSIA to suffer a Net Loss of RM1.1m for 2QE Jan 2009 compared with a profit of RM15.9m in the corresponding period last year.
LOWER FEE INCOME
Apart from a decline in stockbroking income, HWANG-DBS also suffered lower profit due to lower fee income and loss incurred in derivatives. But it was partially offset by a Writeback of Allowance for Loan Loss, higher Net Interest Income from money-lending activities and reduction in staff costs for the quarter under review, it said in an EXCHANGE filing. Revenue for 2QE Jan 2009 was down 37% to RM57.1m from RM91.1m previously.
1HE JAN 2009 RESULTS
For 1HE Jan 2009, Net Profit was sharply lower at RM1.8m, a 94.5% plunge compared to RM34.4m in 2008 due to a 20% decline in Revenue to RM140.3m against RM175.6m in the preceding financial year.
While the Group achieved a higher interest income from its investment banking and money-lending activities during the current financial period, Operating Revenue has been impacted by the reduction in stock broking brokerage income as a result of thin trading volume as well as the losses in derivative trading, it added.
EXPECTATION OF A SLOWER BOURSE
HWANG-DBS said going forward, trading activities in the local bourse are expected to remain sluggish and with no immediate signs of the Malaysian equity market picking up in the near term. The outlook of the Group's stockbroking division would remain challenging.
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