By TMR

BIMB Holdings Bhd (BHB) recorded a higher profit for the final quarter ended Dec 31, 2017 (4QFY17), helped by a strong financing performance, lower provision for its Islamic banking arm and higher contributions from the takaful business.

For the October-December 2017 period, profits at the holding company for Bank Islam Malaysia Bhd (BIMB) were higher at RM149.6 million compared to RM139.4 million recorded in the same period of 2016.

Earnings for the full financial year rose to RM619.8 million compared to RM559 million recorded throughout 2016.

The standalone listed Islamic financial group’s profit before zakat and taxation (PBZT) rose RM948.3 million for the January-December 2017, the highest ever recorded by the group, which also includes Syarikat Takaful Malaysia Bhd as a subsidiary, the company said in a statement.

The profit before tax was 9.1% higher than RM869.2 million registered in the previous year.

BHB said net profit rose 10.9% or RM60.8 million to RM619.8 million. BIMB reported PBZT of RM767.1 million for FY17, RM46.7 million higher than RM720.4 million recorded in FY16.

“BIMB’s profitability growth was mainly due to the strong financing growth of 7.5%, which is almost double the industry’s average financing growth of 4.1%,” said BHB.

Financing grew RM2.9 billion to reach RM42.1 billion as at Dec 31, 2017.

Lower net allowance for impairment of RM15.6 million was lower compared to a net allowance charge of RM92.1 million recorded in the previous financial year.

“The improvement was mainly contributed by lower net allowance charged for collective and individual assessment by RM85.9 million coupled with higher bad debt recovered of RM21.8 million,” the holding company said.

Gross impaired financing ratio also improved to 0.93% as at Dec 31, 2017, lower than the 0.98% registered as at the end of 2016.

BHB said the bank will continue its focus to sustain its growth momentum in retail marketplace via its responsible financing agenda and increase its exposure and market share in small and medium enterprise segments; particularly vendor and supply chain financing.

“The bank would continue to focus on providing access to financing, in supporting viable infrastructure projects that support the economic growth and create job opportunities for the country,” BHB CEO Khairul Kamarudin said.