Al Rajhi Takaful swings into profit in Q3

The Net profit after Zakat is SAR 3,294 thousand for the 3rd quarter compared to a net loss after Zakat SAR 18,364 thousand for the corresponding quarter of previous year and compared to net loss after Zakat SAR 6,141 thousand for the previous quarter 2012. 

Net surplus from insurance operations excluding the income from investment of policyholders funds (operating results) during the 3rd quarter is SAR 24,032 thousand, compared to net surplus SAR 3,120 thousand for the corresponding quarter of the previous year, increased by 670 per cent. 

Gross written premium (GWP) for the 3rd quarter is SAR 130,050 thousand, compared to SAR 107,504 thousand for the corresponding quarter of the previous year , increased by 21 per cent,. Net written premium (NWP) during the 3rd quarter is SAR 113,044 thousand, compared to SAR 82,379 thousand for the corresponding quarter of the previous year increased by 37 per cent. 

Net claims incurred for the 3rd quarter is SAR 77,890 thousand, compared to SAR 67,115 thousand for the corresponding quarter of the previous year, increased by 16 per cent. 

Net income from investment of policyholders funds during the 3rd quarter is SAR 17 thousand, compared to SAR 145 thousand for the corresponding quarter of the previous year , decreased by 88 per cent. Net income from investment of shareholders funds during the 3rd quarter is SAR 2,181 thousand, compared to net loss of Investment SAR 115 thousand for the corresponding quarter of the previous year. 

Net loss for nine months periods before Zakat is SAR 1,333 thousand compared to net loss before Zakat SAR 37,099 thousand for the corresponding period of the previous year, decreased by 96 per cent. Net loss after Zakat for nine months periods is SAR 2,054 thousand compared to net loss after Zakat SAR 38,029 thousand for the corresponding period of the previous year, decreased by 95 per cent. 

Loss per share during nine months period is SAR 0.10, compared to loss per share SAR 1.90 for the corresponding period of the previous year, decreased by 95 per cent. Net surplus from insurance operations excluding the income from investment of policyholders funds (operating results) for nine months period is SAR 50,991 thousand, compared to SAR 25,271 thousand for the corresponding period of the previous year, increased by 102 per cent. 

Gross written premium (GWP) for Nine months period is SAR 450,721 thousand, compared to SAR 363,665 thousand for the corresponding period of the previous year, an increase of 24 per cent. Net written premium (NWP) during nine months period is SAR 321,838 thousand, compared to SAR 245,936 thousand for the corresponding period of the previous year, increased by 31 per cent. 

Net claims incurred for nine months period is SAR 234,724 thousand, compared to SAR 146,947 thousand for the corresponding period of the previous year, increased by 60 per cent. 

Net income from investment of policyholders funds during nine months period is SAR 524 thousand, compared to SAR 219 thousand for the corresponding period of the previous year, increased by 139 per cent. . Net income from investment of shareholders funds during nine months is SAR 7,374 thousand, compared to SAR 1,977 thousand for the corresponding period of the previous year, increased by 273 per cent. 

The reason for the improvement for the 3rd quarter 2012 compared to the corresponding quarter of the previous year is attributable of increasing of net contribution earned by 45 per cent against increased in net claims incurred only by 16 per cent, also increasing the net income from investment of shareholders funds by SAR 2,296 thousand. 

The reason for the improvement for nine months compared to the corresponding period of the previous year is attributable of increasing net contribution earned by 61 per cent and increasing of net income from investment of shareholders funds by 5,397 thousand as 273 per cent, and also to decreasing of general and administration expenses by SAR 4,344 thousand as 6.8 per cent.

(C.P.I Financial / 23 Oct 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Islamic banking provides better value propositions to consumers – KFH Malaysia

Kuwait Finance House (Malaysia) Bhd (KFH Malaysia), a pioneering bank that was incorporated in 1975 in accordance with Islamic principles of syariah, is calling for better awareness among customers that Islamic banking is not only an alternative financial approach but also in some aspects provides better value propositions to the consumers.

In an exclusive interview with The Borneo Post, the bank’s chief executive officer (CEO) Datuk Jamelah Jamaluddin pointed out that Malaysia’s Islamic finance industry had been in existence for over 30 years.

“The enactment of the Islamic Banking Act 1983 enabled the country’s first Islamic bank to be established and thereafter, with the liberalisation of the Islamic financial system, more Islamic financial institutions have been established.

“There are over 300 Islamic financial institutions worldwide across 75 countries. According to the Asian Banker Research Group, the world’s 100 largest Islamic banks have set an annual asset growth rate of 26.7 per cent and the global Islamic finance industry is experiencing average growth of 15 to 20 per cent annually.

“Rapid liberalisation in the Islamic finance industry and facilitative business environment has encouraged foreign financial institutions to make Malaysia their destination of choice to conduct Islamic banking business.

“This has created a diverse and growing community of local and international financial institutions. Full-fledged Islamic banks are given permission to conduct both ringgit and non-ringgit businesses,” Jamelah said.

When asked about the growth of clientele base in the country, she said that so far, the growth in Islamic banking had come from customers switching to Islamic banking from the conventional banking space.

Muslims as well as non-Muslims were starting to see the benefits of Islamic banking and explore syariah-compliant products and services, she remarked.

On the key principle differences between conventional or traditional banking and Islamic banking, the CEO pointed out that Islamic banking differed from conventional banking as it emphasised partnership while prohibiting ‘riba’ or interest.

“Islamic banking aims to create business activities that generate fair and equitable profit from transactions that are backed by real assets.

“It also serves the community at large by promoting ethical investment and by being responsible with a customer’s money right from its source to where it is channeled,” she elaborated.

Nonetheless, the Islamic banking sector was not without challenges as she noted, “Despite the growth, there still is a lack of understanding on the concept, potential customers and benefits of Islamic banking.

“There is also a lack of uniformity between syariah views due to the divergences of opinions between the different schools of law and methodologies that may be called upon when elaborating on the law.

“Syariah interpretation also has to consider business practicability/financing commercial viability,” she emphasised.

Jamelah highlighted that in terms of infrastructure financing, KFH Malaysia had became the main financier in the development project of Islamic religious schools in the state of Johor July 2011.

“The Islamic financing, through a Murabahah Tawarruq facility of up to RM160 million, has been provided to MysysNet Development Sdn Bhd, the company appointed by the Johor state government to undertake the project.

“KFH Malaysia financing will be utilised towards the construction of 97 Islamic religious schools from Phase One to Phase Four,” she stated.

With regards to the attractiveness of KFH’s banking products, the CEO cited an example in saying an increasing number of customers had been interested in KFH Gold Account-i, Muslims and non-Muslims alike.

“Since KFH Account-i was introduced in February 2010, close to10,000 account holders have been recorded. Approximately 30 per cent of KFH Malaysia’s customers are Gold account holders.

“This contributed to around 1.5 tonnes of gold sold. KFH Malaysia also recently launched the first Islamic Junior Gold Account-i for customers below 18 years old. The initial deposit can be as low as five grammes. 

(Berneo Post Online / 27 Oct 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com