TH reports total income of RM1.52b for 1H21

by TMR / pic by TMR FILE

LEMBAGA Tabung Haji (TH) reported a total income of RM1.52 billion for the six months ended 30 June 2021 compared with RM1.55 billion for the same period in 2020.

In a statement today TH said the bulk of its income was derived from its fixed income investments that contributed RM942.6 million for the first half period, accounting for 62% of its total income.

Investments in equities contributed RM219.9 million for the period under review, an improvement from RM184.2 million in the same period in 2020.

Equity investments accounted for 14% of total income.

Property investments provided an income of RM174.7 million, followed by money market investments with an income of RM161.8 million.

After accounting for expenses and zakat, TH reported a net profit of RM1.22 billion for the six-month period to 30 June 2021, a slight drop of 2 percent against RM1.25 billion for the same period in 2020.

The lower profit was partly affected by property investments as the property market was significantly affected by the global pandemic.

“However, TH’s financial position remained strong with assets totalling RM85.92 billion exceeding liabilities of RM83.73 billion as at 30 June 2021. Operating expenses were flat compared against the same period last year, mainly due to prudent cost management amid challenging economic conditions.

TH is also taking continuous measures to optimise expenditure to ensure its cost is managed efficiently,” said TH.

As at 30 June 2021, total deposits amounted to RM81.14 billion, its highest level since TH was established 58 years ago with 8.3 million depositors as at 30June 2021.

“Our disciplined approach to investment reflects TH’s commitment to safeguarding depositors’ interest by preserving and enhancing their hard- earned savings meant to fulfil an important religious obligation.

“We are obviously saddened not to be able to organise the hajj this year, but we are taking all the necessary steps to improve upon preparations for hajj with new safety rules and requirements,” said Group MD and CEO Datuk Seri Amrin Awaluddin.

He added TH remains cautious of the second half of 2021 as new highly infectious Covid-19 variants emerge.