OSK Holdings posted RM137.1 million net profit for 2009
Filed Under (Business News) by Webmaster on 15-04-2010
Tagged Under : OSK Holdings
OSK Holdings Bhd (5053) is confident its investment banking business will make up two-fifths of the group’s revenue and bottom line this year, driven by the economic recovery.
This will make investment banking the group’s major contributor, surpassing its stockbroking business.
OSK Investment Bank managing director and chief executive officer Ong Leong Huat said investment banking contributed 35 per cent to the group’s bottom line last year, up from 25 per cent in 2007 and 2008.
“In Malaysia, we anticipate investment banking to contribute between 45 and 50 per cent of our income this year,” he told a news conference after the group’s shareholder meeting in Kuala Lumpur yesterday.
In the financial year ended December 31 2009, OSK made RM137.1 million net profit on the back of RM820.4 million revenue. In the previous year, net profit was RM138.4 million on revenue of RM812.2 million.
The group’s overseas operations are doing well, contributing a quarter of profit, up from 9 per cent in 2008.
OSK currently has a foothold in Singapore, Hong Kong and mainland China, Indonesia and Cambodia.
Ong expressed confidence that overseas contribution would increase to 35 per cent this year and 40 per cent next.
OSK anticipates huge growth in Indonesia and Cambodia as the capital markets in these two countries are still in their infancy.
“We will grow the branches in Indonesia from the current 10 to 15 by the end of this year, and in Cambodia we will have 10 branches, up from the current five.”
Capital investment allocated for overseas expansion so far amounts to RM400 million, or 26 per cent of the group’s shareholder funds.
The group has been hired to do more deals this year and will also arrange a sizeable number of initial public offerings, Ong said.
For 2009, the group paid an interim dividend of 2.5 sen per share less tax on October 14. The board has recommended a final dividend of 5 sen per share less tax, bringing total dividend for the year to 7.5 sen per share less tax.
