PETALING JAYA: Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) recorded a 39.5% increase in pre-tax profit to RM67mil for the financial year ended Dec 31, 2016 compared with the same period in 2015.
The bank said in a statement that the increase was due to higher contribution from banking operations and better investment results.
“This performance is supported by continued growth from gross income of the Bank’s Islamic banking business which grew at 15% from RM292mil to RM336mil.
“The bank’s net impaired ratio stood at 8.2% given its developmental role as a development finance institution (DFI), and within a single mandated SME sector.”
SME Bank also announced that shareholders’ funds have been strengthened after it managed to recoup accumulated losses with retained earnings of RM109mil versus accumulated losses of RM607mil in 2010.
It also received the approval to convert a RM500mil financing facilities extended by the Finance Ministry (MOF) to equity, which enabled it to strengthen paid-up capital to RM1.85bil from RM1.35bil last year. Its financing portfolio expanded 12% to RM6bil in 2016 from RM5.4bil in 2015.
In a separate statement, SME Bank said group managing director Datuk Mohd Radzif Mohd Yunus (pic) will not be renewing his contract, which expires on June 30. He will be pursuing other transformation opportunities and interests.
“While with SME Bank, he successfully turned around and strengthened the bank by recouping its accumulated losses and bringing the shareholders’ fund to RM1.43bil from RM765mil in 2010, a 87% growth.
“Joining the bank in July 2010, Radzif’s focus then was to transform SME Bank to become a respected and key player in supporting the government’s effort of nurturing and developing the SME entrepreneurs.”
SME Bank said Radzif was instrumental in rolling out the Five-Year Transformation Roadmap (2010-2015) with the primary objective of streamlining the bank’s business model and operational processes.
Source : http://www.thestar.com.my/business/business-news/2017/06/23/sme-bank-pre-tax-profit-rises-to-rm67mil/#83dMyiQXLDtwoqOe.99