The Islamic financial institution records a PBZT of RM843.5m for the year driven by higher total income
By NUR HAZIQAH A MALEK / Pic By MUHD AMIN NAHARUL
STRONGER performance by its banking and takaful businesses lifted BIMB Holdings Bhd’s net profit by 12% year-on-year (YoY) to RM180.86 million for the fourth quarter ended Dec 31, 2019 (4Q19).
Revenue for the quarter rose 9.42% to RM1.35 billion from RM1.22 billion made in 4Q18. Earnings per share for the quarter was 10.25 sen.
The Islamic financial institution recorded a profit before zakat and tax (PBZT) of RM843.5 million for the year driven by higher total income, strong financing growth that is double the industry’s average and increase in investment securities.
For the full financial year (FY19), BIMB’s net profit increased by 15.37% YoY to RM786.92 million on higher revenue to RM5.38 billion versus RM4.52 billion in FY18.
The group’s takaful arm, Syarikat Takaful Malaysia Keluarga Bhd, posted a 23.9% YoY increase in PBZT to RM417.7 million for the year due to higher net wakalah fee income from the family takaful business and higher net investment income.
“Family takaful business gene- rated gross earned contributions of RM2 billion for the year, mainly due to higher sales from credit-related products, while its general takaful business also generated gross-earned contributions of RM706.2 million, also noting an increase by 3%, driven by fire and commercial classes,” it said in a statement yesterday.
For the next three years, the bank plans to deliver sustainable performance with a focus on supporting the economy, community and environment, while pushing its corporate direction on value-based intermediation, such as adopting triple bottom line considerations.
Despite a more cautious business sentiment in 2020, the takaful industry is expected to outperform the conventional business in view of the strong demand for takaful products.
BIMB stated that it will continue to focus on innovative strategies via the implementation of its digital strategy, introduce online solutions, expand its distribution capabilities and strategic partnerships with leading Islamic banks and undertake brand awareness initiatives.
“The company will further strengthen its distribution capabilities for general takaful business in view of greater potential to enlarge the takaful market share in the general insurance and takaful sector,” said BIMB in its filing.