Bank Industri posts record pre-tax profit


BANK Industri group has posted a record pre-tax profit of RM80.8mil for the first half of 2003, thanks to good recovery of bad debts, Bank Industri & Teknologi Malaysia Bhd chairman Tan Sri Othman Mohd Rijal said. 

This represented a pre-tax profit increase of RM10.1mil or 169% for Bank Industri & Teknologi Malaysia Bhd and RM11.4mil or 82% for Export-Import Bank of Malaysia Bhd (Exim Bank) over previously, he said after formalising a RM40mil loan agreement between Bank Industri, Exim Bank Malaysia Bhd and WRP Asia Pacific Sdn Bhd in Kuala Lumpur yesterday. 

The banking group comprises three development financial institutions - Bank Industri & Teknologi Bhd, Exim Bank and Malaysia Export Credit Insurance Bhd. 

Tan Sri Othman (left) exchanging documents with WRP Asia Pacific chairman Tan Sri Ibrahim Mohamed. With them are Bank Industri MD Md Noor Yusoff (far left) and Lew Kwong Ann.

Othman said the higher performance was the result of recovery of RM16mil in bad debts by Bank Industri and RM25.4 mil by Exim Bank, adding Bank Industri's non-performing loans (NPL) had been reduced to13% from 15.5% last year. 

As a result of improved performance, Exim Bank’s risk weighted capital ratio is expected to increase from 12.4% as at Dec 31, 2002, to 15% at the end-2003.  

Othman expects Bank Industri's financial performance to improve further with the possible listing of its investment companies. 

On the appointment of a new chairman for Bank Industri’s subsidiary, Global Maritime Ventures Bhd’s (GMV) to replace Datuk Capt Ahmad Sufian Abdul Rashid, Othman said an announcement would be made next week. 

On market talk that Halim Mazmin Bhd was keen to buy GMV from Bank Industri, Othman said there was no “firm offer” to acquire the bank’s 90% stake in GMV. 

Meanwhile, WRP president and chief executive officer Lew Kwong Ann said the company, which achieved RM400mil in sales for the year ended June 30, was projecting 20% growth for 2004. 

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