Islamic insurance company posts 43% jump in earnings in Q4
KUALA LUMPUR: Syarikat Takaful Malaysia Bhd announced a fourth quarter net profit of RM56.30mil for financial year ending Dec 31 2017, from RM39.26mil a year ago, representing a rise of 43%.
Its quarterly revenue grew 5.48% to RM517.74mil from RM490.82mil in the same corresponding period last year.
On a full year basis, the company recorded a net profit of RM206.70mil against RM176.28mil a year ago, reflecting a rise of 17.26%. Revenue for 2017 was RM2.14bil against RM2.03bil in the previous year.
The company declared a single tier interim dividend of 15 sen per ordinary share amounting to RM123.5mil on Dec 18, 2017.
“The group’s profit surpassed its target and for the first time exceeded RM200mil since its establishment.
“This marks an important milestone for the group as we have been consistently recording an increasing net profit, with cumulative compounded annual growth rate of 27% since the start of our transformation programme in 2009,” its group CEO Datuk Seri Mohd Hassan Kamil said.
The net return on equity came in at 26.7% compared to 24.9% reported in the financial year 2016, which is the highest return on equity among all Government-Linked Companies.
Earnings per share stood at 25.13 sen against 21.52 sen a year ago.
The Group’s results were largely attributable to higher earnings generated by both the family and general takaful businesses,” said Hassan Kamil.
During the year under review, the company’s operating revenue rose 8% to RM1.99bil from RM1.84bil in the previous financial year. The total gross contribution recorded an increase of 8% to RM1.70bil, compared to RM1.58bil in 2016.
Hassan Kamil said the company sustained its position as the market leader in the Takaful business, with general takaful gross contribution growing by a fifth from the previous financial year to close at RM591mil, mainly derived from the Fire and Motor classes. He also said the results achieved were a clear reflection of the group’s operating ability and strength during times of persistent headwinds facing the insurance industry and a testimony to the effective execution of its strategy and strong foundation they have built over the years.
The group had made significant investments in tools, applications and new technologies to improve operational efficiencies. It also enhanced the customer experience via its digital strategy and continued to build on the strong bancassurance relationship with numerous bank partners, with the introduction of new product solutions to improve the growth rate and stay ahead of the curve.
Its share rose 11 sen to close at RM3.70.