BIMB’s net profit grew to RM521m in the first nine months

KUALA LUMPUR: Bank Islam parent BIMB Holdings Bhd posted a higher net profit of RM520.67 million for the nine months ended September 30, 2018, from RM470.2 million a year ago.

Group revenue rose to RM3.08 billion from RM2.77 billion previously.

At pre-tax before zakat level, the profit increased to RM807.3million from RM732.3 million in the same period last year.

In a statement today, BIMB Holdings said its earnings per share was 30.84 sen, compared with 28.81 sen in the same nine months the previous year.

Net asset per share rose to RM3.03 at end September 2018 from RM2.77 at end December 2017. Its Group annualised return on equity (ROE) of 15.1 per cent, places it ahead of its peers in the banking industry.

Bank Islam group’s pre-tax profit before zakat rose 5.8 per cent or RM34.4 million to RM625.7 million a year ago.

“The bank’s improved performance was mainly due to higher income generated by the increase in the Base Rate and Base Financing Rate by 25 basis points effective February 2018, as well as stronger financing growth,” it said.

BIMB Holdings said year-on-year net financing had grown 10.4 per cent or RM4.2 billion to reach RM44.3 billion as at September 30 this year.

During the period under review, customer deposits and investment accounts (IA) stood at RM50.3 billion, a year-on-year increase of RM4.2 billion or 9.1 per cent. Current and savings accounts (CASA) and transactional IA ratio was 32.3 per cent or RM16.2 billion.

Its takaful business under Syarikat Takaful Malaysia Keluarga Bhd (Takaful Malaysia) recorded a pre-tax profit before zakat of RM234.2 million, up 18.5 per cent from the RM197.6 million in the first nine months of 2017.

“The higher profit was attributable to higher net wakalah fee income arising from the business growth in the family and general takaful business,” it said.

Syarikat Takaful’s operating revenue rose 19.5 per cent to RM1,937.6 million from RM1.62 billion in the corresponding period in 2017.

“The increase was mainly attributable to higher sales by both the family takaful and general takaful business,” it said.

Its family takaful business generated gross earned contributions of RM1.11 billion, compared with RM948.0 million in the same period in 2017, an increase of 17.2 per cent, due mainly to higher sales from credit-related products.

General gross earned contributions rose 25.8 per cent to RM519.7 million from RM413.1 million previously, mainly from fire and motor classes.

Source: NST