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Thursday, 20 June 2013

Malaysia: Bank Muamalat posts record pre-tax profit

KUALA LUMPUR: Bank Muamalat Malaysia Bhd (BMMB) posted a pre-tax profit of RM236mil for the financial year ended March 31, up 129% from a year ago and a historical high in its more than 13 years of operation.
It said in a statement the stellar performance was underpinned by strong financing growth and low credit cost arising from improved asset quality coupled with its concerted efforts in capturing fee-based income.
Total revenue increased 11.8% to hit almost RM1bil in the period under review. The increase was supported by a 10.4% growth in financing income and hibah, growing to RM904.6mil from RM819.3mil.
Similarly, fee and other income improved to RM94.7mil, a notable year-on-year growth of 27.5%, derived from the bank’s focus on expanding its Ar-Rahnu business and wealth management services, in addition to its increased corporate advisory activities.
CEO Datuk Mohd Redza Shah Abdul Wahid said it was a record year for the bank which had achieved a new milestone in its financial results.
“More importantly, we have closed the year with a healthier balance sheet. To keep this momentum going, we will continue to place great emphasis on strengthening our balance sheet to position the bank towards long-term sustainable growth,” he said in a statement yesterday.
The bank registered a net write-back of RM20.2mil for its financial assets, reversing the net provision of RM63mil made in the previous financial year.
Asset quality as measured by gross impairment ratio has improved to 2.5%, almost half of 4.7% recorded in the previous financial year.
These improvements are reflective of the bank’s continuous effort on prudent recovery, credit risk management initiatives taken and better quality financing base expansion.
Gross financing grew to RM10.6bil fuelled by a 30.2% growth in consumer financing over the preceding year. Consumer financing contributed 66% of the overall financing portfolio. With the growth in financing, the bank closed its financial year with total assets of RM21.1bil.
Total deposits grew to RM18.7bil with a growth of 17.3% in savings deposits from the expanded customer base in the period under review.
The bank has proposed a first and final dividend of 26% to its shareholders for the financial year ended March 31, 2013, subject to its shareholders’ approval.
(The Star Online / 13 June 2013)

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