TH DECLARES 3.05PC DIVIDEND
Fund credits sustainable investment strategies, prudent cost management
TABUNG Haji (TH) announced a dividend of 3.05 per cent for the financial year ended Dec 31 last year, with profit distribution after zakat of RM2.1 billion compared with RM913 million in financial year 2018.
TH said this was driven by better financial performance and sustainable investment strategies as well as prudent cost management.
Its investments generated RM3.3 billion income last year, with RM1.2 billion in the fourth quarter alone.
“Overall, TH’s investment income is more stable, with fixed income investment assets accounting for 58 per cent, or RM1.9 billion, of the profit.
“Real property and equity investments contributed RM500 million (15 per cent) each while Islamic money market instruments contributed RM400 million (12 per cent),” said TH in a statement yesterday.
The pilgrims fund said its investment strategy transformation had reduced the pressure from volatile stock market conditions arising from the global trade war, among others.
As at Dec 31 last year, TH’s total assets stood at RM74.3 billion, surpassing its liabilities of RM71.4 billion.
TH’s net profit after zakat rose 19 per cent to RM1.9 billion in financial year 2019 from RM1.6 billion in financial year 2018.
The profit had taken into account RM86 million allocated for zakat payments to the state Islamic councils and RM370 million for the management and provision of facilities to haj pilgrims.
The overall performance enabled TH to retain its haj pilgrimage cost at RM9,980, compared with the actual cost of RM22,900 for all Muassasah (private package) pilgrims who performed their haj for the first time last year.
Group managing director and chief executive officer Datuk Nik Mohd Hasyudeen Yusoff said TH’s income distribution was the balance from profits after taking into account all expenditures, haj subsidy costs, zakat payments and management costs.
He said TH would continue to improve depositors’ benefits from their savings following the shift to the wakalah savings contract by introducing more addedvalue features while ensuring a sustainable investment performance.