KUALA LUMPUR: BIMB Holdings Bhd’s (BHB) net profit rose to RM786.92 mil in its financial year ended Dec 31, 2019 (FY19) versus RM682.06 mil in the preceding year.
Revenue increased to RM5.38 bil from RM4.52 bil previously, it said in a filing to Bursa Malaysia today.
For the fourth quarter, its net profit was up at RM180.86 mil from RM161.39 mil, on the back of RM1.35 bil revenue against RM1.24 bil in the preceding year.
In a statement, BHB said both the Islamic banking and takaful businesses performed strongly.
Bank Islam Group registered a higher profit before tax and zakat of RM843.5 mil for FY19 from RM810.3 mil in the previous financial year, due to higher total income following a strong net financing growth of 8.3%, which is more than double the industry’s average financing growth of 4.1%.
It also saw an increase in investment securities of 9.3%.
Net financing stood at RM49.5 bil while investment securities was at RM12.8 bil.
Meanwhile, Syarikat Takaful Malaysia Keluarga Bhd (Takaful Malaysia) recorded a 23.9% growth increase in profit before tax and zakat to RM417.7 mil for FY19 compared with the previous year’s RM337 mil.
This was contributed by higher net wakalah fee income arising from the growth in the family takaful business and higher net investment income.
Takaful Malaysia’s operating revenue improved by 18.4% in FY19 to RM3.1 bil.
The family takaful business generated gross earned contributions of RM2 bil during the year versus RM1.6 bil in the previous year, mainly attributable to higher sales from credit-related products.
In addition, the general takaful business generated a better gross earned contributions of RM706.2 mil from the previous year’s RM685.8 mil, mainly from fire and commercial classes.
Going forward, Bank Islam’s strategic plan for the next three years is to deliver sustainable performance with a strategic focus to support the economy, community and environment.
Its corporate direction is premised on value-based intermediation, at the heart of the bank’s business model.
The bank is also committed to promoting digital competency among its employees for the expected changes brought about by digitalisation.
Meanwhile, the takaful industry is expected to outperform the conventional insurers in view of the strong demand for takaful products in 2020.
“Takaful Malaysia is poised to further expand its market share in 2020. To sustain its market-leading position, the company will continue with its innovative strategies via the implementation of its digital strategy, the introduction of online solutions, expansion of its distribution capabilities, strategic partnerships with leading Islamic banks and brand awareness initiatives,” it said.
The company would also further strengthen its distribution capabilities for general takaful business in view of greater potential to enlarge the takaful market share in the general insurance and takaful sector. – Feb 27, 2020, Bernama
