Tabung Haji Q1 net profit jumps 82% to Rm1.25bil

KUALA LUMPUR: Lembaga Tabung Haji (TH) recorded a strong financial performance in the first quarter ended June 30, with net profit up 82.4% to Rm1.25bil, boosted by stronger investment income.

The pilgrimage fund recorded the net profit from Rm849.66mil in the previous corresponding period.

“Total assets of TH also exceeded its liabilities by Rm1.86bil as at June 30,2020,” TH said in a statement.

TH announced the higher net profit was underpinned by improved investment income of RM1.55B in H1 of 2020, of which Rm1bil was from fixed income asset investments or 65% of its total investment income.

“Property investments generated an income of Rm204.57mil, Islamic money market investments contributed Rm187.13mil and Rm150.27mil derived from equity investments, ” it said.

TH also said it was preparing for more complicated pilgrimage management next year, following the postponement of the haj this year. This included addressing new challenges such as service delivery that takes into account the Covid-19 situation.

TH added the shock of the Covid-19 pandemic also took place in a weakened global economic environment due to low crude oil prices and the escalation of trade wars between the world’s major economies.

As an active pilgrimage and investment institution in the financial market, TH was also exposed to the effects of the Covid-19 outbreak and measures by the government to curb the spread through the movement control order (MCO).

However, the financial market started to improve when the government lifted some of the MCO curbs and allowed the resumption of economic activity and the implementation of the economic stimulus plans.

TH said the FBM KLCI, which fell more than 23% during the Covid-19 pandemic, has returned to near its original level. The FBM KLCI closed at 1,500.97 on June 30, versus 1,588.76 on Dec 31,2019. However, it said this did not mean that pressure on the performance and valuation of TH assets, as in the real estate sector, has decreased.

TH group managing director and CEO Datuk Nik Mohd Hasyudeen Yusoff said Covid-19’s significant impact posed a major challenge for TH in terms of managing the investments and protecting the interests of depositors.