The banking group declared an interim single-tier dividend of 14 sen per share.
KUALA LUMPUR: BIMB Holdings Bhd
’s (BHB) net profit in the first quarter (Q1) ended March 31, 2018 rose 13.9% to RM172.14mil from RM151.10mil in the previous corresponding period.
Revenue increased to RM999.36mil from RM919.64mil previously.
In a filing to Bursa Malaysia today, BHB said its banking segment, Bank Islam Group reported a profit before zakat and tax (PBZT) of RM207.2mil for Q1, an increase of 7.9% or RM15.1mil compared with the corresponding period in 2017.
Bank Islam’s profit growth was mainly due to the increase in the base rate and base financing rate by 25 basis points effective February 2018, following the 25 basis points increase in overnight policy rate on Jan, 25, 2018, it said.
The increase was also attributable to the year-on-year (y-o-y) growth in net financing assets of RM2.6bil or 6.6%, reaching RM42.4bil as at March 31, this year.
As at end of March 2018, the bank’s customer deposits and investment accounts stood at RM46.9bil and RM4.9bil with a y-o-y increase of RM3.3bil and RM900mil, respectively, it said.
The bank capital position continued to be healthy as reflected by its total capital ratio of 16.9%, compared with 14.9% a year ago, said the group.
BHB said moving forward, Bank Islam would focus on small and medium enterprises (SMEs), towards which it had established a SME Banking Division.
The bank had introduced eight SME Centres, namely in Melaka, Perak, Kedah, Kelantan, Johor, Penang, Terengganu and Selangor to assist entrepreneurs in their business financing needs.
“Through digitalisation, Bank Islam will be able to accelerate SME banking by providing business solutions for operational and expansion needs,” it said.
It said the bank would also focus on optimising its risks and returns, resources and productivity, as well as its franchise value, underpinned by a disciplined balance sheet management.
For Takaful segment, Takaful Malaysia Group recorded a PBZT of RM84.9mil, an increase of 17.1% compared with RM72.6mil in the corresponding period in 2017.
It said the higher profit was attributable to higher net Wakalah fee income arising from robust business growth in the General Takaful business.
Takaful Malaysia’s operating revenue increased 13.1% to RM746.2mil from RM659.9mil previously, mainly attributable to higher sales by both Family Takaful and General Takaful business.
Moving forward, Takaful Malaysia remains focused on sustaining its position as the market leader in the Family Takaful business, while expanding its market share in the General Takaful business to establish a strong foothold in the industry.
It will continue to enhance its digital capability to increase product and service accessibility by intensifying its online marketing initiatives, it added. - Bernama
