BIMB full-year earnings up 11% to RM619m

  • Banking
  • Wednesday, 28 Feb 2018

KUALA LUMPUR: BIMB Holdings Bhd posted earnings of RM149.64mil in its fourth quarter ended Dec 31, 2017, 7% higher from the previous corresponding quarter, on the back of higher revenue of RM946.06mil. 

Profit before zakat and tax (PBZT) for the quarter under review came to RM216.1mil, which was 5.9% or RM12mil higher as compared to RM204.1mil in the year-ago quarter.

"The improved PBZT was mainly due to net writeback of allowances for impairment in Q4 2017 against a net allowance charged for impairment in Q4 2016," the group said in its filing with the stock exchange.

Operating profit for the quarter was RM241.3mil, a 3% increase from a year earlier.

For the full year, BIMB recorded earnings of RM619.84mil on the back of RM3.72bil revenue, an improvement of 11% and 5% respectively from the previous financial year.

The group's banking arm, Bank Islam Malaysia Bhd, achieved net financing of RM42.1bil, an increase of RM2.9bil from the previous year.

"Customer deposits and investment accounts stood at RM46.2bil and RM4.3bil respectively with a year-on-year increase by RM0.3bil and RM0.4bil respectively. 

"Current and saving accounts (CASA) reported a year-on-year increase of RM1.3bil or 9.5% to reach RM15.5bil as at 31 December 2017. The CASA ratio as at end December 2017 was 33.5% compared to 30.8% as at 31 December 2016."

Meanwhile, Syarikat Takaful Malaysia Bhd recorded PBZT of RM253.7mil, 15% higher from the previous year due to higher net wakalah fee income from business growth in the general takaful segment.

The group said that for 2018, Bank Islam will focus on business and value optimisation, underpinned by disciplined balance sheet management.

"This is to sustain net income margin, preserve asset quality as well as to minimise financial impact arising from the implementation of Malaysian Financial Reporting Standards on Financial Instruments (MFRS9) in 2018 and the upcoming Net Stable Funding Ratio (NSFR) requirements," it said.

It added that it will continue to collaborate with fintech companies to enhance reach and spur innovation.

As for Takaful Malaysia, it will remain focused on sustaining its market lead in the family takaful business as well as expanding its market share in the general takaful segment. 

"Takaful Malaysia will continue to enhance its digital capability to increase its product and service accessibility to the consumers by intensifying its online marketing initiatives," it added.