BIMB Holdings posts RM16.31m net profit in 3Q

KUALA LUMPUR (Nov 29): BIMB HOLDINGS BHD [] posted net profit of RM16.31 million in the third quarter ended Sept 30, 2011, which was sharply lower from the second quarter’s RM62.84 million due to relatively lower net income, higher operating overheads.

It said on Tuesday that its revenue was RM481.31 million while earnings per share were 1.53 sen. This was a decline from the revenue of RM502.26 million in 2Q and EPS of 5.89 sen.

BIMB said the group's profit before zakat and taxation (PBZT) for the quarter under review of RM110.6 million declined by RM43.0 million or 28% compared to the PBZT of RM153.6 million in 2q.

“The decrease was mainly attributable to relatively lower net income, higher operating overheads and higher allowance for impairment on financing, advances and others,” it said.

Bank Islam Malaysia Bhd’s PBZT for 3Q11 of RM101.0 million was lower compared to 2Q by RM32.2 million or 24%. The decrease was due mainly to lower writebacks in impairment allowances by RM16.1 million and by both fund based and non-fund based income by RM13.5 million respectively.

For the quarter under review, SYARIKAT TAKAFUL MALAYSIA BHD [] (STMB) recorded a PBZT of RM 10.1 million which was RM11.7 million lower than the preceding quarter of RM 21.8 million. The decrease was mainly attributable to lower surplus transfers from Family Takaful and General Takaful. The lower surplus transfers was due to higher reserving for family takaful group products and the impact of poor performance of the equity market.

For the nine-month period, BIMB said its group net profit was RM130.52 million on the back of revenue of RM1.467 billion.

The group's PBZT of RM399.8 million for the nine months increased RM127.8 million or 47% over the previous corresponding period. Net profit attributable to the shareholders had improved by RM37.7 million or 41% to RM130.5 million.

“The higher profitability recorded for the nine months financial period ended Sept 30, 2011 was mainly due to higher operating results registered by the Group's subsidiaries, mainly Bank Islam Malaysia group and STMB group by 20% and 81% respectively.

“The growth in the Group's net income was driven by higher profit from continued growth in financing, higher non-fund based income and improved asset quality in Bank Islam (Bank Islam), as well as higher profit generated from Takaful businesses.

Bank Islam recorded a PBZT of RM342.0 million for the nine months ended 30 September 2011, an increase of RM101 million or 42% compared to the last corresponding period. The significant achievement translated into a return on equity (ROE) of 17.3% compared to 16.5% as at end December 2010. The Islamic banking system average ROE was 14.5% as at end December 2010. The return on assets (ROA) was 1.5% compared to 1.2% as at end December 2010. The Islamic Banking System average was 1.2% as at end December 2010.

BIMB said for the nine months financial period ended Sept 30, STMB recorded operating revenue of RM1.045 billion comprising RM892.5 million in gross contribution and RM152.6 million in investment income. The gross contribution was mainly attributable to Family Takaful group business and motor and fire class of business.