BIMB Holdings Bhd (BHB), Malaysia’s premier Islamic financial services Group today announced a Profit Before Zakat and Taxation (PBZT) of RM948.3 million for the financial year ended 31 December 2017 – the highest ever recorded by the Group. 

Driven by robust financing growth and strong asset quality, the PBZT is 9.1% higher than that registered in the previous year. 

Over the same period, net profit attributable to shareholders rose 10.9% or RM60.8 million to RM619.8 million. The strong performance translated to an after tax ROE of 15.4%, one of highest among listed banking peers. 

For the nine months ended 30 September 2017, an interim single tier dividend of up to RM229.3 million or 14.0 sen per share was proposed by the directors of BHB. 

It was also proposed that the Dividend Reinvestment Plan (DRP) be made applicable to the entire proposed interim single tier dividend. 

BHB registered highest DRP with a subscription rate of 90.88% indicating continuous strong commitment and participation by its’ shareholders. 

ISLAMIC BANKING 

Bank Islam Group reported a PBZT of RM767.1 million for FY2017, an increase of RM46.7 million or 6.5% over the PBZT of the previous financial year of RM720.4 million. 

Bank Islam’s profitability growth was mainly due to the strong financing growth of 7.5% which is almost double the industry’s average financing growth of 4.1%. Financing grew RM2.9 billion to reach RM42.1 billion as at 31 December 2017 with the asset quality remaining strong and resilient, despite the robust expansion and challenging economic environment. 

The strong assets quality is reflected in the improvement of the gross impaired financing ratio of 0.93% as at 31 December 2017 lower than the 0.98% registered as at 31 December 2016. Whilst, the Bank’s financing loss coverage ratio stood at 160.0%, much higher than the industry average of 82.9%. 

The Bank will continue its focus to sustain its growth momentum in retail market place via its responsible financing agenda and increase its exposure and market share in SME segments; particularly vendor and supply chain financing. 

For 2018, the Bank’s corporate direction is premised on the over-arching themes of Value-Based Intermediation (“VBI”). VBI is at the heart of the Bank’s business model, to deliver a sustainable performance with a strategic focus to support economic, social and environmental development. 

“The Bank would continue to focus on providing access to financing, in supporting viable infrastructure projects that supports the economic growth and create job opportunities to the country”, said Khairul Kamarudin, CEO of BIMB Holdings. 

As part of VBI initiative, the Bank has launched “Sadaqa House”, a crowdfunding initiative that would support its social finance agenda. It is a digital platform to source funding for social finance and financial inclusion activities. Shariah rules and principles remain fundamental to the Bank’s direction along with the new Triple Bottom Line (“TBL”) approach embedded in all operating principles. 

The Bank will focus on optimising its risks and returns, optimising its resource and productivity as well as its franchise value, which is underpinned by a disciplined balance sheet management. 

This is to sustain net income margin, preserve asset quality as well as to minimise financial impact arising from the implementation of Malaysian Financial Reporting Standards on Financial Instruments (“MFRS9”) in 2018 and the upcoming Net Stable Funding Ratio (“NSFR”) requirements. 

The Bank will stay on course with its strategy to collaborate with FinTech companies in enhancing its reach and spurring innovation. Digital banking agenda has been formulated to enhance its customer experience and optimise it distribution channel to be more cost effective. It will also continue to invest in its people, to build a strong compliance and risk culture as well as enhance its capability and capacity as one of the key players in Islamic Finance world. 

TAKAFUL 

Syarikat Takaful Malaysia Berhad Group (Takaful Malaysia), meanwhile, recorded a PBZT of RM253.7 million for FY2017, an increase of 14.8% as compared to RM221.0 million achieved in the previous year. The higher profit is attributable to higher net wakalah fee income arising from the robust business growth in the General Takaful business. 

Takaful Malaysia’s operating revenue rose 6.2% in FY2017 to RM2,139.1 million from RM2,013.3 million in the preceding year. The increase is mainly attributable to higher sales generated by both Family Takaful and General Takaful business. 

Takaful Malaysia in 2018 will remain focused on sustaining its position as the market leader in the Family Takaful business whilst expanding its market share in the General Takaful business to establish a strong foothold in the industry. The Company will continue to enhance its digital capability to increase its product and service accessibility to the consumers by intensifying its online marketing initiatives. 

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