KUALA LUMPUR: BIMB Holdings Bhd's net profit increased 6.8 per cent to RM387.1 million in the first half (H1) ended June 30 2021.
The group's profit before zakat and taxation (PBZT) rose 6.6 per cent to RM612.2 million.
BIMB, in a statement today, said it had registered a healthy annualised return on equity (ROE) of 11.6 per cent with a net asset per share of RM3.69 as of June 30.
Its subsidiary Bank Islam Malaysia Bhd recorded a PBZT of RM475.0 million for H1, which rose 22.1 per cent over the same period in 2020.
The increase is primarily due to the absence of significant modification loss charges during the period of the customer moratorium.
In 2020, Bank Islam incurred RM97.8 million modification loss on the automatic moratorium granted in April 2020.
The bank's total assets stood at RM73.6 billion as of June 30 2021, a year-on-year increase by RM5.0 billion from RM68.6 billion reported until 30 June 2020, which was mainly contributed by the increase in financing, advances and others by RM3.2 billion and an increase in cash and short-term funds by RM1.0 billion.
At the end of June 2021, its customer deposits and investment accounts stood at RM61.9 billion, with a year-on-year increase of RM3.3 billion or 5.8 per cent.
"Total current and saving accounts and transactional investment accounts (CASATIA) composition is healthy at 38.6 per cent of total customer deposits and investment accounts. Total gross impaired financing as of June 30 2021 was RM407.2 million compared to RM371.5 million as of June 30 2020.
With gross impaired financing remaining at 0.72 per cent, BIMB said Bank Islam continued to manage prudential risk while demonstrating resilience in the face of prolonged challenges by maintaining traction on sound financial standing.
As for the takaful segment, Syarikat Takaful Malaysia Keluarga Bhd (Takaful Malaysia) recorded a PBZT of RM210.2 million for compared to RM211.8 million achieved in H1 2020.
Takaful Malaysia's operating revenue stood at RM1.61 billion, 13.1 per cent higher than RM1.42 billion posted in H2 2020.
BIMB said the growth was mainly attributable to higher sales from both family and general takaful businesses.
Segmentally, family takaful business generated gross earned contributions of RM924.9 million for H1 2021, higher than RM772.1 million in the same period last year due to higher sales from credit-related products.
General takaful business recorded a higher gross earned contributions of RM415.2 million in H1, mainly attributable to motor classes.
Commenting on the results, group chief executive officer Mohd Muazzam Mohamed said as the world was combatting the Covid-19 pandemic, BIMB continued to focus on integrating the principles of Shariah, value-based intermediation as well as environment, social and good governance (ESG) considerations to remain resilient and promote financial inclusion for all.
"Bank Islam continues to assist the community in making a positive impact on people's lives and livelihood and meeting their needs. We provided the Repayment Assistance programme for our customers to manage their cash flow better during this challenging time.
"Takaful Malaysia will continue its strategic initiatives to strengthen its business resilience and adjust its operating models in managing the business in a very different market and dynamic operational landscape. Takaful Malaysia remains vigilant and cautious in managing operating costs, business growth, and portfolio risk," he added.