Higher expenses bite BIMB’s Q2 earnings

PETALING JAYA: BIMB Holdings Bhd saw its net profit fall 5.6% to RM135.67 million for the second quarter ended June 30, 2017 against RM143.71 million in the previous corresponding period, due to higher personnel and other overhead expenses.

This was on the 6.9% rise in revenue from RM882.44 million to RM943.19 million.

The group said in a filing with the stock exchange that it anticipates the banking industry to remain resilient despite challenging operating environment with moderate loans growth of between 5% and 6%.

“While competition for deposits and margin compression continue, sufficient liquidity in the banking system is projected to support financing activities,” it noted.

For Bank Islam in particular, the group will continue to focus on maintaining its asset quality and deposit drive while continuously embracing digitalisation. In line with Basel III rules, it will continue to manage liquidity and deploy capital efficiently in its operations.

For 2017, BIMB said Takaful Malaysia will continue to emphasis the four core areas of customer reach, operational agility, cost competitiveness and stakeholder confidence to increase its overall market shares and continuously improving shareholders’ value.

“Through its extensive range of products and services, Takaful Malaysia is poised to sustain its position as the market leader in the Family Takaful business,” it added.

BIMB’s first-half net profit expanded 2.8% from RM278.97 million to RM286.77 million. Revenue came in at RM1.86 billion, 5.1% higher than the RM1.77 billion it made in the same period a year ago.