BIMB Q1 earnings flat at RM153m, weighed by higher finance costs

The banking group declared an interim single-tier dividend of 14 sen per share.

KUALA LUMPUR: BIMB Holdings Bhd reported flat earnings of RM135.25mil in the first quarter ended March 31, 2016 from a year ago due to higher finance cost despite its higher revenue.

It said on Wednesday finance costs rose to RM28.28mil from RM17.65mil, impacting the earnings despite the higher revenue. BIMB said its earnings a year ago were RM135.70mil. 

For the just-ended quarter, revenue increased by 10.8% to RM896.79mil from RM809.08mil. Earnings per share were 8.57 sen compared with 8.84 sen.

On Bank Islam, BIMB said it posted a 3.6% increase in profit after tax to RM127.5mil compared with a year ago.

“Net financing grew16.9% or RM5.1bil year-on-year. Gross impaired financing ratio was slightly below 1%. Bank Islam’s capital ratio stayed healthy at 15.2% as at end March 2016,” it said. 

Bank Islam maintained its financing growth momentum with net financing assets up 16.9% on-year or RM5.1bil to reach RM35.2bil as at March 31, 2016. 

“It said with the bank’s continued effort in managing its credit risk, it was able to maintain its strong asset quality. The Bank’s gross impaired financing ratio improved to 0.94% as at end March 2016 from 1.09% recorded as at end December 2015,” it said.

Its group’s customer deposits fell 2.2% or RM900mil on-year to reach RM40.6bil as at March 31, 2016. 

However, the current and savings accounts (CASA) reported a on-year growth of 0.8% or RM100mil. The CASA ratio as at end March 2016 stood at 36.8% compared with 35.1% as at end December 2015. 

“The bank’s capital position remained healthy to support the continuous business growth with the Risk Weighted Capital Adequacy ratio of 15.2% as at end March 2016,” it said.
 
At Syarikat Takaful Malaysia Bhd Group (Takaful Malaysia), profit after tax rose 2.2% to RM45.7mil from a year ago. Operating revenue rose to RM633.2mil from RM562.5mil mainly due to higher sales generated by both family Takaful and feneral Takaful business. 

Family Takaful recorded gross earned contributions of RM288.7mil against RM237.0mil a year ago mainly due to higher sales from Family Takaful mortgage related products. 

General Takaful generated gross earned contributions of RM138.1mil from RM136.2mil a year ago as growth was mainly from commercial classes.