BIMB Q3 net profit falls to RM16mil

by **hlk** Wed 30 Nov 2011, 08:17

PETALING JAYA: BIMB Holdings Bhd posted a net profit of RM16.31mil for the third quarter ended Sept 30, compared with RM62.85mil in the second quarter, on relatively lower net income, bigger operating overheads and higher allowance for impairment on financing and advances.

Revenue for the period was RM481.32mil and earnings per share (EPS) were 1.53 sen versus RM502.26mil and 5.89 sen respectively in the second quarter. The company changed its financial year-end to Dec 31 last year from June 30 in 2009.

BIMB Holdings said in a statement that group profit before zakat and taxation (PBZT) for the third quarter of RM110.6mil was 28% lower from RM153.6mil in the second quarter.

Its subsidiaries Bank Islam Malaysia Bhd and Syarikat Takaful Malaysia Bhd (STMB) posted PBZT of RM101mil and RM10.1mil respectively for the third quarter.

For the nine-month period, the group's PBZT stood at RM399.8mil.

Net profit attributable to shareholders for the nine months improved by 41% to RM130.5mil.

The improved group net income was driven by higher profit from continued growth in financing, higher non-fund-based income and improved asset quality of Bank Islam, as well as higher profit from takaful businesses in three consecutive quarters.

Bank Islam recorded a PBZT of RM342mil for the nine months, up 42%. This translates to a return on equity of 17.3% versus 16.5% as at end-December 2010.

For the nine-month period, STMB posted a operating revenue of RM1.045bil, comprising RM892.5mil of gross contribution and RM152.6mil of investment income.

On the company's future plans, group managing director and CEO Johan Abdullah said: “The group will continue to leverage on Bank Islam's strong Islamic branding and competitive position to sustain core retail financing and deposit-investment businesses, in particular, home financing, automotive financing and business financing.”

“Efforts are also being intensified to increase non-fund-based income.

“Bank Islam will continue to originate and participate in syndication facilities as well as focus on deals such as sukuk, corporate finance and advisory services.