PETALING JAYA: Kenanga Investment Bank Bhd

has posted a lower profit of RM406,000 for the second quarter ended June 30, 2026 (2QFY26) compared to the RM2.2mil posted in the same quarter a year ago.

Revenue, however, was 2.65% higher at RM208.8mil for the period versus RM203.4mil a year ago.

In a filing to Bursa Malaysia, the investment bank said the drop in profit was on the back of a one-off trading system upgrade cost and ongoing investments in cybersecurity initiatives, alongside increased regulatory-related costs.

It added that despite higher revenue, profitability was impacted as the group made investments to future-proof its business.

For the first half of 2026, Kenanga registered revenue of RM417.5mil which was higher than the RM413mil posted for the first half of 2025.

The increase was supported by higher brokerage and management fee income despite softer trading and investment income.

Moving forward, Kenanga noted it will focus on strengthening its core businesses, enhancing operational efficiency, and maintaining prudent risk, capital, and liquidity management.

It added that despite market conditions being uncertain, it will continue executing key business initiatives and progressing opportunities currently in the pipeline.

“The group continues to implement cost optimisation and productivity improvement initiatives across key operating areas, including its equity broking and technology functions, to enhance operational efficiency and strengthen long-term resilience,” it said.

Separately, Kenanga has revised its 2026 gross domestic product growth upward to 5.3% after taking into account the stronger-than-expected performance in the first half of 2026.

“Looking ahead, our house view expects growth to remain supported by resilient private consumption, healthy investment activity and continued strength in export-oriented industries.

"However, external risks persist, including uncertainty surrounding global trade policies, uneven growth among major economies and China's fragile recovery,” it stated.