by HARIZAH KAMEL / graphic by MZUKRI MOHAMAD

BIMB Holdings Bhd group’s net profit increased by 6.8% to RM387.1 million for the six months ended June 30, 2021 (1H21) while profit before zakat and tax (PBZT) rose 6.6%, recording RM612.2 million.

In a statement yesterday, the group registered a healthy annualised return on equity (ROE) of 11.6% and net assets per share of RM3.69 in 1H21.

In 1H21, Bank Islam Group’s PBZT rose by 22.1% to RM475.0 million mainly due to no significant modification loss charged during the period for moratorium granted to customers.

The bank’s total assets stood at RM73.6 billion, a year-on-year (YoY) increase by RM5.0 billion from RM68.6 billion which was mainly contributed by the increase in financing, advances and others by RM3.2 billion and increase in cash and short-term funds by RM1.0 billion.

At the end of June 2021, customer deposits and investment accounts stood at RM61.9 billion, with a YoY increase of RM3.3 billion or 5.8%. 

Meanwhile, Syarikat Takaful Malaysia Keluarga Bhd recorded a lower PBZT of RM210.2 million as compared to RM211.8 mil achieved in 1H20.

Family Takaful business gross earned contributions expanded to RM924.9 million for 1H21 from RM772.1 million in the corresponding period last year due to higher sales from credit-related products.

General Takaful business also recorded a higher gross earned contribution of RM415.2 million in 1H21 and was mainly attributable to motor classes.

Commenting on the results, BIMB CEO Mohd Muazzam Mohamed said the group continues to focus on integrating the principles of Shariah, Value-Based Intermediation (VBI) as well as environment, social and good governance (ESG) considerations to remain resilient and promote financial inclusion for all. 

“Bank Islam continues to assist the community in making a positive impact on people’s lives and livelihood and meeting their needs. We provided the Repayment Assistance programme for our customers to manage their cash flow better during this challenging time. 

“We also uplifted our growing affordable microfinance iTEKAD and BangKIT programmes, as well offered other innovative solutions to generate a more significant impact on the underserved and unbankable target group through its social finance arm,“ he said. 

The iTEKAD programme is now expanded to Perlis and Selangor, benefitting 98 customers with total financing of close to RM1.8 million as of July 31, 2021.

While for BangKIT Microfinance, the bank has approved a financing amount of RM1.01 million to 95 customers since its launch in November last year.

In line with the positive financial performance, as of June 2021, Bank Islam has disbursed and contributed close to RM4.0 million to more than 11,000 individuals and organisations through various initiatives, including the distribution of Sadaqa House’s funds to recipients under its four focused sectors, namely education, health, community empowerment and environment.