BIMB Holdings profit dips 5.6%


BIMB Holdings Bhd saw its net profit for the second-quarter ended June 30, 2017 (2Q17), fall 5.6% to RM135.6 million against RM143.7 million previously, due to higher operating overheads and lower net wakalah fee income.

However, the country’s only Islamic financial holding company’s revenue saw a 6.9% increase to RM943 million for the period under review, compared to RM882.4 million in the corresponding period of the preceding year.

In a statement yesterday, BIMB said it has embarked on the journey to sustainability, based on five pillars — responsible, finance, inclusive growth, talent development, Islamic finance (IF) and knowledge — as well as ethical practice and reporting.

Nonetheless, BIMB continued to maintain its financing growth with net financing assets recording year-on-year (YoY) growth of 11.5%, or RM4.5 billion, to reach RM40.5 billion as at 2Q17.

For the six months ended June 2017, net financing growth on an annualised basis was 6.7%. Customer deposits and investments accounts stood at RM48.1 billion with a YoY jump of RM5.7 billion or 13.4%.

The family takaful segment, operated under Syarikat Takaful Malaysia Bhd (STMB), recorded gross
earned contributions increase of 7.6%, or RM645 million for 2Q17, compared to RM599.6 million previously, driven by higher sales from its family takaful mortgage-related products.

Its general takaful recorded a 5.9% jump in its gross earned contributions with RM272.8 million compared to RM257.5 million generated previously.

For the year 2017, STMB will continue to focus in four core areas of customer reach, which are operational agility, cost competitiveness and stakeholder confidence to increase its overall market shares, and continuously improve shareholders’ value.

Through its exten sive range of products and services, STMB is poised to sustain its position as the market leader in the family takaful business.

“STMB will undertake an enhanced approach to its distribution channel by accelerating digital initiatives to optimise its operations and marketing activities.

“It is also expected to actively cultivate its digital presence through an online sales portal and integrated marketing initiatives, as part of its long-term strategy to meet the growing needs of the consumers,” BIMB noted.

CEO Khairul Kamarudin said for IF, with all its ingrained principles, remains relevant in a world that is increasingly focused on societal and environmental well- being, which operates within a system of clear governance.

“IF is well-positioned to lead as inclusive growth that leverages on an ecosystem of responsible finance.

“BIMB’s key operating unit, Bank Islam Malaysia Bhd, intends itself as a value-based intermediary (VBI) that reflects the true essence of IF, with greater emphasis on environment and social governance,” he said.

Moving forward, BIMB said that Bank Islam will continue to focus on maintaining its asset quality and deposit drive, while continuously embracing digitalisation.

“The bank will continue to manage liquidity and deploy capital efficiently in its operations. It will also continue to position itself as a VBI that reflects the true essence of IF,” BIMB said.