SOLID GROWTH
Fund manager posts RM6.7b earnings for first five months of this year against RM5.7b a year ago
PERMODALAN Nasional Bhd’s net income grew 18.2 per cent while group asset under management rose 4.2 per cent in the first five months of this year, a reflection of an improved economic and capital market performance.
PERMODALAN Nasional Bhd (PNB) said its net income grew 18.2 per cent to RM6.7 billion in the first five months of the year from RM5.7 billion a year ago.
Group asset under management rose 4.2 per cent to RM265.6 billion, from RM255.2 billion previously.
PNB group chairman Tan Sri Abdul Wahid Omar said the strong performance was a reflection of improved economic and capital market performance globally and locally.
“With the Malaysian economy expected to register higher growth supported by stronger exports and firmer currency, we hope to continue to sustain this respectable performance growth for the rest of the year,” he said during PNB’s first-half performance update, here, yesterday.
Wahid also disclosed how PNB had made tangible progress on its strategic companies, expanding the portfolio from six to nine key companies currently.
“The aggregate market value of PNB’s strategic companies has increased by RM31 billion to date, representing a weighted growth of 18.1 per cent, more than double the growth of FTSE Bursa Malaysia KLCI.”
The demerger of PNB strategic companies such as Sime Darby Bhd and UMW Holdings Bhd was progressing well while SP Setia Bhd’s acquisition of I&P Bhd had been finalised recently.
Its largest strategic investment company, Malayan Banking Bhd, had reached market capitalisation of RM100 billion, driven by a 17 per cent rise in its share price year-to-date.
“We are very pleased with the growth achieved to date in the market capitalisation of our strategic companies.
“This reflects the strong and positive reaction and support from the market on our strategic initiatives to enhance the value of these companies through pure plays.
“It will also motivate us to work harder to ensure that our strategic companies will have the right platform and focus to deliver enhanced operational and financial performance going forward,” he added.
In its bid to optimise asset allocations to boost overall portfolio yield, PNB’s fixed-income instruments constituted a larger 4.8 per cent of total assets compared with 3.4 per cent a year ago while its cash portion fell to 19.7 per cent, from 20.7 per cent previously.
Its private investment exposure also saw marked growth following the completion of the acquisition of SILK Highway by Prolintas.