Tuesday May 26, 2009
BIMB profit falls on lower takaful sales
KUALA LUMPUR: BIMB Holdings Bhd’s net profit in the third quarter ended March 31 fell 68% to RM13.7mil from RM42.8mil in the previous corresponding period.
Revenue fell 9.1% to RM329.9mil during the period while earnings per share fell to 1.54 sen from 4.8 sen.
For the nine months ended March 31, BIMB’s net profit declined by 48.4% to RM78.8mil, or 8.84 sen per share. Revenue was slightly higher at RM1.07bil from RM1.06bil previously.
In a filing with Bursa Malaysia yesterday, BIMB said the group’s income bearing assets, which were derived mainly from Bank Islam (M) Bhd, grew by 23% against the previous corresponding period.
“However, this favourable effect on revenue is offset by the lower underwriting surplus secured from Syarikat Takaful Malaysia Bhd’s (STMB) operations, due to poor overall investment performance and slower sales from the ordinary family takaful business,” it said.
The lower profit before zakat and tax was also due to the lower recoveries by Bank Islam for the period under review, it said.
BIMB said there were also impairment losses on investment of RM15mil incurred by STMB and RM1mil incurred by BIMB Securities Sdn Bhd during the period.