KUALA LUMPUR: BIMB Holdings Bhd posted net profit of RM16.31 million for 3QFY11 ended Sept 30, compared with RM62.84 million in the previous quarter, due mainly to lower net income and higher operating overheads. It also announced the adoption of a dividend payout policy of at least 50% of the company’s net profit to shareholders.
The group’s revenue for 3QFY11 fell 4.2% to RM481.3 million from RM502.3 million in 2Q. It posted basic earnings per share of 1.53 sen against 5.89 sen in 2Q.
BIMB’s profit before zakat and taxation (PBZT) declined by 28% to RM110.6 million compared with RM153.6 million in the preceding quarter, due to relatively lower net income, higher operating overheads and higher allowance for impairment on financing, advances, among others, it said.
BIMB’s 51%-owned subsidiary, Bank Islam Malaysia Bhd saw its 3QFY11 PBZT decline by 24% to RM101 million compared with RM133.2 million in 2Q. The decrease was due mainly to lower writebacks in impairment allowances by RM16.1 million and by both fund based and non-fund based income by RM13.5 million.
Meanwhile, 65.2%-owned subsidiary Syarikat Takaful Malaysia Bhd’s PBZT fell 53% to RM10.1 million from RM21.8 million in the preceding quarter.
The decrease was mainly attributable to lower surplus transfers from family takaful and general takaful.
For the 9MFY11 ended Sept 30, BIMB posted RM130.52 million net profit on the back of RM1.5 billion in revenue. BIMB’s PBZT for 9MFY11 grew 47% to RM399.8 million as Bank Islam operating results rose 20% and Syarikat Takaful’s 81%.
Bank Islam’s PBZT rose 42% to RM342 million compared with the last corresponding period. The significant achievement translated into a return on equity (ROE) of 17.3% compared with 16.5% as at end December 2010. This compares with the Islamic banking system’s average ROE of 14.5% as at Dec 31, 2010.
Bank Islam’s return on assets was 1.5% compared with 1.2% as at Dec 31, 2010. The industry average was 1.2% as at end-December 2010.
For 9MFY11, Syarikat Takaful recorded operating revenue of RM1 billion, comprising RM892.5 million in gross contribution and RM152.6 million in investment income. The gross contribution was mainly attributable to family takaful group business and motor and fire class of business.
No comparative figures were disclosed for the current quarter and the cumulative year-to-date of the preceding quarter and year due to the change in the financial year end to Dec 31.
BIMB said the local banking and finance industry will remain resilient next year, despite a moderation in the economic growth rate. It added that competition will intensify with the entry of foreign-controlled banks and insurance operators next year.
“The group will continue to leverage Bank Islam’s strong Islamic branding and competitive position to sustain core retail financing and deposit-investment businesses. Efforts are also being intensified to increase non-fund based income,” said Johan Abdullah, group managing director and CEO.
He said Bank Islam will continue to originate and participate in syndication facilities as well as focus on deals such as sukuk, corporate finance and advisory services.
Johan added that it hopes to increase Takaful Malaysia’s market share in the takaful industry by introducing new products and growing its agency workforce.
BIMB rose one sen to close at RM1.80 yesterday with 4.4 million shares done.
This article appeared in The Edge Financial Daily, November 30, 2011.
The group’s revenue for 3QFY11 fell 4.2% to RM481.3 million from RM502.3 million in 2Q. It posted basic earnings per share of 1.53 sen against 5.89 sen in 2Q.
BIMB’s profit before zakat and taxation (PBZT) declined by 28% to RM110.6 million compared with RM153.6 million in the preceding quarter, due to relatively lower net income, higher operating overheads and higher allowance for impairment on financing, advances, among others, it said.
BIMB’s 51%-owned subsidiary, Bank Islam Malaysia Bhd saw its 3QFY11 PBZT decline by 24% to RM101 million compared with RM133.2 million in 2Q. The decrease was due mainly to lower writebacks in impairment allowances by RM16.1 million and by both fund based and non-fund based income by RM13.5 million.
Meanwhile, 65.2%-owned subsidiary Syarikat Takaful Malaysia Bhd’s PBZT fell 53% to RM10.1 million from RM21.8 million in the preceding quarter.
The decrease was mainly attributable to lower surplus transfers from family takaful and general takaful.
For the 9MFY11 ended Sept 30, BIMB posted RM130.52 million net profit on the back of RM1.5 billion in revenue. BIMB’s PBZT for 9MFY11 grew 47% to RM399.8 million as Bank Islam operating results rose 20% and Syarikat Takaful’s 81%.
Bank Islam’s PBZT rose 42% to RM342 million compared with the last corresponding period. The significant achievement translated into a return on equity (ROE) of 17.3% compared with 16.5% as at end December 2010. This compares with the Islamic banking system’s average ROE of 14.5% as at Dec 31, 2010.
Bank Islam’s return on assets was 1.5% compared with 1.2% as at Dec 31, 2010. The industry average was 1.2% as at end-December 2010.
For 9MFY11, Syarikat Takaful recorded operating revenue of RM1 billion, comprising RM892.5 million in gross contribution and RM152.6 million in investment income. The gross contribution was mainly attributable to family takaful group business and motor and fire class of business.
No comparative figures were disclosed for the current quarter and the cumulative year-to-date of the preceding quarter and year due to the change in the financial year end to Dec 31.
BIMB said the local banking and finance industry will remain resilient next year, despite a moderation in the economic growth rate. It added that competition will intensify with the entry of foreign-controlled banks and insurance operators next year.
“The group will continue to leverage Bank Islam’s strong Islamic branding and competitive position to sustain core retail financing and deposit-investment businesses. Efforts are also being intensified to increase non-fund based income,” said Johan Abdullah, group managing director and CEO.
He said Bank Islam will continue to originate and participate in syndication facilities as well as focus on deals such as sukuk, corporate finance and advisory services.
Johan added that it hopes to increase Takaful Malaysia’s market share in the takaful industry by introducing new products and growing its agency workforce.
BIMB rose one sen to close at RM1.80 yesterday with 4.4 million shares done.
This article appeared in The Edge Financial Daily, November 30, 2011.
