BIMB posts 13.9% increase in net profit to RM172m

By SHAHEERA AZNAM SHAH / Pic By MUHD AMIN NAHARUL

BIMB Holdings Bhd recorded a 13.9% increase in net profit to RM172.14 million for the first quarter ended March 31, 2018 (1Q18), from RM151.1 million in the previous corresponding period.

The group’s revenue also recorded an 8.7% year-on-year (YoY) growth to RM999.36 million from RM919.64 million previously.

Its profit before zakat and taxation (PBZT) for the quarter under review grew 11.1% to RM273.6 million compared to RM246.2 million recorded a year ago.

“Our PBZT represents a growth of 11.1%, or RM27.4 million, over the PBZT of RM246.2 million achieved in the corresponding period in 2017,” BIMB CEO Khairul Kamarudin (picture) said.

“The PBZT translates into an annualised pretax return on equity (ROE) of 20.8%, one of the highest in the industry. The annualised pretax return on assets was 1.7%,” he added.

The group’s banking arm Bank Islam Malaysia Bhd’s PBZT rose 7.9% YoY to RM207.2 million from RM192.1 million — attributable to the higher total income.

“The bank’s total income for 1Q18 rose on the back of the higher fundbased income of RM54.8 million, which was mainly attributed to the increase in base rate and base financing rate by 25 basis points effective February 2018, in response to the Overnight Policy Rate hike on Jan 25, 2018,” it said in an exchange filing.

The group added that the increase was also attributed to the 6.6% growth in the bank’s net financing assets, reaching RM42.4 billion as at end- March 2018 from RM39.8 billion recorded a year ago.

Bank Islam’s customer deposits and investment accounts stood at RM46.9 billion and RM4.9 billion respectively.

Its current and savings accounts recorded a 4.4% growth to RM14.4 billion, while the ratio remained at 30.7% — similar to a year ago.

For 2018, the bank will remain focused on establishing its small and medium enterprise (SME) banking division.

“The bank has introduced eight SME centres across Malaysia to assist entrepreneurs in their business financing requirement by providing solutions for their operational and expansion needs.

“We will also focus on optimising our risks and returns, optimising the resources and productivity as well as the franchise value, which is underpinned by a disciplined balance sheet management,” it said.

Meanwhile, the group’s insurance arm Syarikat Takaful Malaysia Bhd’s operating revenue grew 13.1% to RM746.2 million, mainly due to the higher sales generated by its general takaful business.

Its PBZT grew 17.1% YoY to RM84.9 million from RM72.6 million — due to the higher net wakalah fee income arising from robust business growth in the general takaful business.

“General takaful’s gross earned contributions rose 27.2% YoY to RM182.4 million for 1Q18, derived mainly from the fire and motor classes. Its net benefits and claims increased 16.4% to RM51.1 million, mainly due to the increase in claims relating to the fire and motor classes,” it added.