BMMB pre-tax profit rises 129 pct to RM236 mln

BMMB pre-tax profit rises 129 pct to RM236 mln
Business & Markets 2013
Written by Bernama
Wednesday, 12 June 2013 13:37


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KUALA LUMPUR (June 12): Bank Muamalat Malaysia Bhd (BMMB) today announced a historical high pre-tax profit of RM236 million for its financial year ended March 31, 2013, equivalent to an increase of 129 per cent year-on-year.

The performance was underpinned by strong financing growth and low credit cost arising from the improved asset quality coupled with concerted efforts in capturing fee-based income.

Total revenue increased 11.8 per cent to almost RM1 billion in the period under review.

The increase was supported by a 10.4 per cent growth in financing income and hibah, growing from RM819.3 million previously to RM904.6 million.

"It was a record year for the bank and we have achieved a new milestone in our financial results. More importantly, we have closed the year with a healthier balance sheet.

"To keep this momentum going, we will continue to place great emphasis on strengthening our balance sheet to position the bank towards long-term sustainable growth," said BMMB Chief Executive Officer Datuk Mohd Redza Shah Abdul Wahid in a statement today.

Similarly, fees and other income improved to RM94.7 million, a notable year-on-year growth of 27.5 per cent, derived from the bank’s focus on expanding its Ar-Rahnu business and wealth management services, in addition to its increased corporate advisory activities.

The bank registered a net writeback of RM20.2 million for its financial assets, reversing the net provision of RM63 million made in the previous financial year.

Asset quality, as measured by gross impairment ratio, has improved to 2.5 per cent, compared to 4.7 per cent recorded in the previous financial year, the statement said, adding these improvements reflect the bank’s continuous efforts
on prudent recovery, credit risk management initiatives and better quality financing base expansion.

Gross financing grew to RM10.6 billion fuelled by a 30.2 per cent growth in consumer financing over the preceding year.

Consumer financing contributed 66 per cent of the overall financing portfolio.

With the growth in financing, BMMB closed its financial year with total assets of RM21.1 billion.

Total deposits grew to RM18.7 billion with a growth of 17.3 per cent in savings deposits from the expanded customer base in the period under review.

The bank’s key capital ratios remained at healthy levels, with core capital ratio at 14.7 per cent and risk weighted capital ratio at 19.2 per cent, both of which remained above the industry averages of 11 per cent and 13.5 per cent
respectively.

The bank has proposed first and final dividend of 26 per cent to its shareholders for the financial year, subject to its shareholders' approval. -- BERNAMA