The banking group declared an interim single-tier dividend of 14 sen per share.
KUALA LUMPUR: BIMB Holdings Bhd
recorded higher net profit in the second quarter ended June 30, 2018 mainly due to higher fund based income.
It announced on Monday that net profit was up by 10.5% to RM150mil from RM135.66mil. Its profit before zakat and tax (PBZT) was up 10.3% to RM237.30mil from RM215.23mil.
At the operating profit level, the operating profit rose by 6% to RM284.7mil from RM268.5mil.
Its banking unit, Bank Islam achieved PBZT of RM193.5mil, up 10.1% from RM175.7mil a year ago mainly due to higher total income.
The bank’s total income rose by RM34.1mil, mainly due to higher fund based income of RM58.9mil, which was due to the increase in base rate and base financing rate by 25bps effective February 2018.
This was in response to the 25 basis points increase in the Overnight Policy Rate on Jan 25, 2018.
“It is also attributed to the year-on-year growth in net financing assets of RM2.7bil or 6.7% to reach RM43.2bil as at end June 2018 from RM40bil as at end June 2017,” it said.
BIMB said for Q2, 2018, Bank Islam recorded net allowance charged for impairment on financing and advances of RM14.8mil compared to RM24.8mil a year ago.
“The decrease in net allowance charged was mainly contributed by the higher bad debts recovered by RM9.9mil,” it said.
As for Syarikat Takaful Malaysia Keluarga Bhd, it recorded PBZT of RM61.4mil, up by 3.9% from RM59.1mil a year ago maionly due to an increase in net wakalah fee income.
Takaful Malaysia generated operating revenue of RM542.4mil versus RM485.3mil a year ago mainly due to higher sales generated by family and general Takaful business, partially offset by fair value losses.
For the first half, its net profit was up 12.3% to RM322.04mil compared with RM286.77mil. Revenue rose by 6.9% to RM1.99bil from RM1.86bil.
On the outlook, BIMB said Bank Islam would focus on optimising its risks and returns, optimising its resources and productivity as well as its franchise value, which is underpinned by a disciplined balance sheet management.
It said this was to sustain net income margin, preserve asset quality and minimise the financial impact arising from the implementation of Malaysian Financial Reporting Standards on Financial Instruments (MFRS 9) and the upcoming Net Stable Funding Ratio (NSFR) requirements.
“With digital transformation being a new thrust to enriching customer experience and services, Bank Islam has embarked on its digital journey to collaborate with FinTech companies in enhancing its reach and spurring innovation,” it said.
As for Takaful Malaysia, it said the insurer would remain focused on sustaining its position as the market leader in the family Takaful business whilst expanding its market share in the general Takaful business to establish a strong foothold in the industry.
It said Takaful Malaysia would boost its digital capability to increase its product and service accessibility to the consumers by intensifying its online marketing initiatives.
“Takaful Malaysia will also embark on multiple digital initiatives to further develop ‘customer centric’ value propositions to remain competitive in the industry.
“Takaful Malaysia will amplify its brand presence and the 15% Cash Back offered to its customers for selected products in the event of no claims during the coverage period,” it said.
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