K&N Kenanga posts RM8.23m net profit in 3Q

KUALA LUMPUR: K&N Kenanga Holdings Bhd posted net profit of RM8.23 million in the third quarter ended Sept 30, 2009, a turnaround from the net loss of RM41.95 million a year ago.
The investment banking group said on Friday, Nov 13 that revenue doubled to RM81.34 million from RM40.49 million. Earnings per share were 1.30 sen versus loss per share of 6.9 sen.
For the nine months ended Sept 30, it recorded net profit of RM6.42 million versus net loss of RM53.08 million in the previous corresponding period. Revenue was RM180.85 million compared with Rm158.68 million.
K&N Kenanga said the improvement in the 3Q was mainly due to continued positive growth in net brokerage income earned by the bank's equity division and write-backs in allowances for loans, advances and financing and balances on clients and brokers totaling RM2.58 million.
However, these profits were negated by RM1.87 losses recorded by the associated companies.
K&N Kenanga said despite the losses, the group's financial position was solid with the bank's risk weighted capital ratio of 34.89%, well above the minimum 8% prescribed by Bank Negara