BIMB Holdings Q2 net profit jumps 86%

PETALING JAYA: BIMB Holdings Bhd's second quarter net profit surged 86% to RM129.67 million from RM69.58 million a year ago due to lower operating overheads and higher writeback for impairment on investments and other assets.
Revenue for the Islamic banking group for the three months ended June 30, 2014 rose 3.8% to RM734.59 million from RM707.44 million a year ago.
Its earnings per share (EPS) for the period stood at 8.68 sen compared to 6.52 sen a year earlier.
For the first six months period, BIMB's net profit leaped 76.1% to RM253.12 million from RM143.72 million a year ago while revenue was up 5.8% to RM1.46 billion from RM1.38 billion a year ago.
"As a result of the acquisition of 49% interest in Bank Islam Malaysia Bhd, the net profit attributable to shareholders increased by RM109.4 million or 76.1%.
"Consequently, the EPS for the period under review also increase by 25.8%," group managing director and CEO Johan Abdullah said.
BIMB said its year-on-year net financing assets grew 22.9% to RM26.3 billion as at June 30, 2014, as asset quality improved further with a gross impaired financing ratio of 1.15% from 1.36% a year ago.
The risk weighted capital adequacy ratio of Bank Islam Malaysia remained healthy at 13.9%, it said.
In the six months period, Bank Islam posted a profit before zakat and tax of RM335.3 million, up 4% from a year ago due to growth in business activities.
Meanwhile, Syarikat Takaful Malaysia Bhd's profit before zakat and tax increased 21.1% to RM100.3 million compared to RM82.8 million in the same corresponding period last year.
"The higher profit was attributable to lower management expenses and expense reserves," it said.