BIMB HOLDING BERHAD’S PBZT GREW 21.5% TO RM620.6 MILLION FOR THE SIX MONTHS ENDED 30 JUNE 2019

Kuala Lumpur, Wednesday, 28 August 2019: BIMB Holdings Berhad (“BHB”), Malaysia’s premier Islamic financial services Group’s PBZT rose 21.5% or RM109.7 million to RM620.6 million for the six months ended 30 June 2019, compared with the corresponding period in 2018.

The strong performance translates to an annualised after-tax Return on Equity (“ROE”) of 15.9%, one of the highest in the industry.

For the period under review, net profit attributable to shareholders rose 23.5% or RM75.6 million to RM397.7 million. Earnings per share also improved to 22.69 sen from 19.10 sen in the same period last year.

Islamic Banking

Bank Islam Group (“Bank Islam” or “the Bank”) reported a PBZT of RM437.4 million for the six months ended 30 June 2019, an increase of 9.2% or RM36.7 million over the same six months in 2018.

Bank Islam’s higher profit was mainly due to growth in business activities. Net fund-based income from financing increased 4.8% or RM37.9 million on the back of a year-on-year (“Y-o-Y”) growth in net financing assets of 7.3% or RM3.2 billion to RM46.4 billion at end June 2019.

The quality of the Bank’s increased assets portfolio remained strong and is reflected in the low gross impaired financing ratio of 1.2% at 30 June 2019, lower than the 1.5% of the Banking system at end May 2019. Furthermore, the Bank’s financing loss coverage ratio of 136.4% was also much higher than the industry average of 91.7% at the end of May.

On the funding side, the Bank’s customer deposits and investment accounts stood at RM54.7 billion, a Y-o-Y increase of 10.0% or RMS5.0 billion. The Current and Savings Accounts (“CASA”) and Investment Accounts (IA) without maturity, low-cost deposits/IA stood at RM14.2 billion as of 30 June 2019.

The Bank’s capital position continued to be healthy, with Total Capital Ratio at 18.4%, compared jo the indusiry ratio of 17.5% at end May 2019.

The Bank is of the view that the profitability outlook for the rest of the year will remain stable despite the challenging economic environment.

Takaful

For the six months ended 30 June 2019, Syarikat Takaful (Malaysia) Keluarga Berhad Group (“Takaful Malaysia”) recorded a 43.7% higher PBZT of RM210.4 million, compared to RM146.4 million in the same period in 2018, due mainly to stronger growth in the Family Takaful business.

Takaful Malaysia’s operating revenue of RM1,591.1 million for the period under review increased by 23.5% or RM302.5 million over the same period in 2018.

The increase was mainly attrioutable to higher sales generated by Family Takaful business, which recorded gross earned contributions of RM967.5 million, a 43.5% increase, from the corresponding period last year. The growth came mainly from higher sales of credii- related products.

General Takaful’s gross earned contributions rose to RM370.4 million, an increase of 8.1% compared to the same period last year. The growth came mainly from fire class.

Despite business sentiments remaining cautious in 2019, the Takaful industry is expected to outperform the conventional insurers in view of the strong demand in the Takaful products. It is the commitment of Takaful Malaysia to continue responding to the needs of customers with reliable and better protection solutions and services that they deserve to establish Takaful Malaysia as the preferred choice for insurance firmly.

For further information on BHB, please visit www. bimbholdings.com.