BIMB Q3 net profit up 25%

by **Cals** Thu 28 Nov 2013, 07:12

Posted on 28 November 2013 - 05:39am

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PETALING JAYA (Nov 28, 2013): BIMB Holdings Bhd, which currently owns 51% of Bank Islam Malaysia Bhd, the country's oldest and largest Islamic bank, saw its net profit surge 25% to RM75.46 million in the third quarter ended Sept 30, 2013 (Q3FY13) from RM60.55 million a year ago.

Revenue for Q3FY13 improved 8% to RM696.03 million from RM641.59 million.

Bank Islam saw its profit before zakat and taxation in Q3FY13 fall by 11% to RM153.4 million, mainly attributable to higher allowance for impairment of financing and advances.

Meanwhile, Syarikat Takaful Malaysia Bhd, its Islamic insurance arm, saw its profit before zakat and taxation increase 89% to RM42.8 million from RM22.6 million a year ago.

However, Takaful Malaysia's generated operating revenue dropped to RM377 million from RM416.2 million because of lower sales generated by both family and general takaful businesses.

In the nine months period (9MFY13), BIMB Holdings' net profit jumped 19% to RM219.18 million from RM183.65 million a year ago, while revenue increased by 15% to RM2.08 billion from RM1.81 billion.

The group posted a profit before zakat and taxation of RM598.7 million for 9MFY13, up 15.4% over the same period in 2012, on the back of higher operating results of RM32.5 million and RM49.6 milllion improvement in allowances for impairment on financing and advances, investment and other assets, as well as the non-recurrence of provision for contingent liability.

The group registered net financing growth of RM3.1 billion or 15.7% for 9MFY13 as asset quality improved further, with a gross impaired financing ratio of 1.39% as at Sept 30, 2013 compared with 1.55% in Sept 30, 2012.

BIMB Holdings said its total capital ratio remained healthy at 14.18%.

For 9MFY13, Bank Islam recorded a profit before zakat and taxation of RM476 million, up 10% from RM433.8 million, mainly attributed to growth in overall business activities.

Year-on-year, Bank Islam's net financing assets grew 24.6% to reach RM22.6 billion as at end-September 2013.

Its fund based income from financing also increased by 22.5%, while non-fund based income also grew by 7.8% mainly from foreign exchange transactions and, fees and commission.

On its current year prospects, BIMB Holdings said Bank Islam is targeting to grow both its commercial and corporate financing portfolios and is looking at avenues to increase its non-fund based income.

On the hand, Takaful Malaysia will continue its 'We Should Talk' marketing campaign to create more awareness of the "15% No Claim Rebate" value proposition in positioning itself to be the leading takaful operator in Malaysia.

"With the introduction of new products and services in 2013, Takaful Malaysia is expected to increase its market share while improving shareholder value," it said.

It added that Takaful Malaysia will also be looking to increase the number of exclusive or preferred partnerships with major financial institutions to grow the bancatakaful business.