Takaful Malaysia 4Q net profit falls 28%, proposes 1-to-5 share split

by **Cals** Tue 10 Feb 2015, 22:00

Takaful Malaysia 4Q net profit falls 28%, proposes 1-to-5 share split

By Sulhi Azman / theedgemarkets.com | February 10, 2015 : 8:17 PM MYT

KUALA LUMPUR (Feb 10): [size=14]Syarikat Takaful Malaysia Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s net profit for the fourth quarter ended Dec 31, 2014 (4QFY14) fell 28% to RM29.75 million or 18.24 sen per share, from RM41.48 million or 25.48 sen per share.

Quarterly revenue, however, climbed 6% to RM401.49 million from RM378.5 million on higher sales generated by the general takaful business, as well as higher net investment income which grew by 4.5%.

For the full FY14, Takaful Malaysia saw its net profit was marginally higher at RM140.52 million or 86.27 sen per share from RM139 million or 85.37 sen per share in FY14, while revenue dropped 3.5% to RM1.65 billion from RM1.71 billion.

On segmental basis, its operations in Malaysia contributed 91% or RM1.5 billion to the total revenue, while its business in Indonesia generated the remaining 9% or RM153 million.

Takaful Malaysia declared a total dividend of 40 sen per share in FY14, a 5% less than a total dividend of 42 sen per share in the previous year.

Going forward, Takaful Malaysia said it will continue its value proposition of rewarding its customers with a 15% cash-back, as well as establishing a strong foothold in the local insurance and takaful arena.

“The successful implementation of core initiatives in operational excellence, technology driven capabilities, product innovation and performance oriented culture that will enable the company to be ahead of its competitors, increase its overall market shares and continuously improving on shareholder’s value,” it said in a filing with Bursa Malaysia this evening.

In a separate announcement, Takaful Malaysia proposed a one-to-five share split to improve its marketability and trading liquidity. The group has also proposed to amend part of its memorandum of association to facilitate the implementation of its proposed share split.

Takaful Malaysia is 60.31%-owned by BIMB Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard). As at Dec 31, 2014, foreign shareholdings in Takaful Malaysia stood at 10.51 million shares or 6.45% equity interest.

The share price was down 10 sen to close at RM11.30 today, giving it a market capitalisation of RM1.84 billion.
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