BIMB aims for 30pc loans growth (5258)

Bank Islam Malaysia Bhd (BIMB) aims to achieve 30 per cent loans growth
this year on the back of higher demand for shariah-compliant products
and better economic conditions.

Managing Director Datuk Seri Zukri Samat said the growth forecast surpasses last year's 19.9 per cent growth.

"For the first six months of this year, our loans growth has already exceeded 15 per cent.

"Looking
at the trend for loans growth over the last six months, the bank is
expected to show good growth in financing," he told reporters after
launching a money market fund, BIMB Dana AL-Fakhim, here today.

The
fund, managed by BIMB Investment Management Bhd, an investment arm of
Bank Islam, is targeted at investors who have low risk tolerance level
and those who seek to receive a regular stream of income.

Zukri
said the fund, targeted to garner RM100 million in 12 months, would be
invested into short-term investments such as short-term debentures,
money market instruments and placements in short-term deposits.

"There
is no entry cost when investing in the fund and income distribution,
expected to be around three per cent a year, will be paid on a
quarterly basis and is exempted from tax," he said.
Going forward, he said the bank plans to introduce another product by year-end targeting less savvy investors.

Zukri
said the fund's asset allocation is very flexible between equity and
fixed income investments depending on market conditions.

"The
fund would overweight equity and underweight fixed income investments
when the equity market is bullish, and vice versa when the market is
bearish," he added.

On another matter, Zukri denied the bank's
involvement in efforts to take up one of the two mega Islamic bank
licences announced by Bank Negara previously.

"We just have to focus on what we are doing right now rather than trying to put an investment in another bank," he said.

On
expansion plans into Indonesia, he said the bank is still keen to
spread its wings to the world's most populous Muslim nation despite
failing twice.

He said the bank is also fine with Bank Indonesia's new guideline of 40 per cent foreign ownership in the country's banks.

Asked
on the responsible lending guidelines issued by Bank Negara earlier
this year, he said the bank has not been affected by the new ruling due
to its conservative approach to loans applications.

"The guidelines issued by Bank Negara have been practised by the bank all along," he said. -- Bernama