PETALING JAYA: BIMB Holdings Bhd, the owner of Bank Islam Malaysia Bhd, expects earnings for the financial year ending Dec 31, 2017 to reach another new high, even as its financing growth shows signs of slowing down.
The group reported a 12% increase in net profit to RM151.1mil in the first quarter ended March 31, as revenue improved 3.2% to RM919.6mil.
“Our main operating subsidiaries, Bank Islam and Takaful Malaysia, kept up the earnings momentum in the first quarter of 2017 to deliver stronger earnings for the group,” group chief executive officer Datuk Seri Zukri Samat said in a statement.
“We believe that by staying focused on the group’s strategic strengths and building on this positive momentum, they will be able to steer the group to post another year of record earnings,” he added.
The bank’s financing portfolio continued to grow, with net financing assets expanding 12.8% or RM4.5bil from a year ago to reach RM39.8bil at the end of the quarter.
Net financing growth, on an annualised basis, was 5.8%. The bank’s financing activity expanded 14.3% last year.
“The banking industry is expected to be resilient despite the prevailing economic conditions such as the continued uncertainty in the commodity prices, the higher cost of living that weighs heavily on consumer sentiment and cautious business sentiment,” the bank said in the filing with Bursa Malaysia.
BIMB said that for this year, the bank would be focusing on maintaining its asset quality and deposit drive, as well as digitalisation.
“In line with basel three rules, the bank will continue to manage liquidity and deploy capital efficiently in its operations.
“With capital management in place, the bank’s capital buffer is sufficient to cover potential losses under various stress scenarios,” it said.
BIMB said as at the end of March 2017, customer deposits and investment accounts stood at RM47.6bil with an year-on-year increase of RM6bil or 14.5%.
Its current account and savings account (CASA) deposits and transactional investment accounts ratio as at end-March 2017 was 32.6% against the Islamic banking industry CASA ratio of 25.9% as at the end of February 2017.
Source : http://www.thestar.com.my/business/business-news/2017/05/17/bimb-holdings-expects-earnings-in-current-financial-year-to-reach-record-high/#Blux4u6ef2yLu7iw.99