Monday, August 30, 2010

BIMB net profit down 35% to RM22.55m

KUALA LUMPUR: BIMB HOLDINGS BHD [] posted net profit of RM22.55 million for the quarter ended June 30, 2010, a decline of 35% from RM34.82 million a year ago.

Revenue was marginally lower at RM415.19 million compared with RM417.86 million a year ago, it said on Monday, Aug 30.'' It recorded an operating profit of RM75.64 million, down 35.1% from RM116.65 million a year ago.

Earnings per share were 2.11 sen compared with 3.89 sen. It proposed dividend per share of 1.5 sen versus 1.2 sen a year ago.

However, for the 12 months ended June 30, 2010, revenue rose 8.9% to RM1.623 billion from RM1.49 billion. Net profit was RM135.88 million, 19.5% from RM113.66 million in the previous corresponding period.

'With a positive revenue growth of 8.9% (2009: 4.4%) for the 12 months period ended June 30, 2010, the group registered a strong performance, with a profit before zakat and taxation (PBZT) of RM377.6 million (2009: RM299.1 million), as both Bank Islam Malaysia Bhd (the bank) and SYARIKAT TAKAFUL MALAYSIA BHD [] (STMB) continue to show better profitability with a return on assets (ROA) of 1.1% (2009: 0.9%) and 1.5% (2009: 1.2%) respectively.

BIMB said the bank achieved a PBZT of RM313.0 million, exceeding the previous financial year by 34.3% or RM79.9 million. Based on the results, the bank's return on equity (ROE) was 16.2%, despite the increase in equity from the Islamic convertible redeemable non-cumulative preference shares (ICRNCPS) of RM540 million issued during the year.

The bank's return on equity of 16.2% was also higher than the Islamic banking system average of 13.9% for 2009. The bank's return on assets increased from 0.9% as at June 2009 to 1.1% as at June 2010 arising from reshaping of the balance sheet with better product mix that maximize returns and lower the cost of deposits.

'The bank's improved performance was contributed by strong growth in financing, continued improvement in asset quality and increase in lower cost deposits. The bank achieved a net financing growth of 16.8%, or by RM1.6 billion to RM11.3 billion. The bank's lending remained focused on the retail sector which contributed to the bulk of the growth,' it said.

Despite the growth in financing, non performing financing (NPF) continued to trend downwards. The Bank's net NPF volume dropped by 44% or RM292 million to RM371 million. The reduction in the NPF volume saw the net NPF ratio (based on three months classification) declining to 3.24% compared to 6.74% as at June 2009.

The bank's risk weighted capital ratio strengthened from 13.6% in June 2009 to 16.7% in June 2010, following the issuance of the ICRNCPS.

Syarikat Takaful Malaysia, which is BIMB group's takaful arm, recorded a higher surplus transfer from its family and general takaful fund of RM162.7 million (2009: RM147.7 million), a growth of 10.2% due to contribution growth and higher investment related income such as realised gains on disposal of investments and writebacks in both allowance for doubtful debts and allowance for diminution in value of investments.

'In addition, Syarikat Takaful Malaysia's wakalah fee income of RM69.9 million grew by 80.4% compared to RM38.7 million in 2009. Thus, STMB's cost efficiency also improved from 76.7% to 73.7%. As a result, PBZT increased by RM17.2 million to RM66.9 million from RM49.7 million in the same period last year,' it said.


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