Bank Muamalat posts 9-month profit of RM 172 mil
KUALA LUMPUR: Bank Muamalat Malaysia Bhd has reported a pre-tax profit of RM 172.4 mil for the nine months ended Dec 31, 2012, surpassing its previous full-year results of RM 123.5 mil.
Revenue 12.3% to RM 744.6 mil, the bank said in a statement.
“Our performance grew steadily through 2012 despite the continuous intense competition in the industry. We delivered sustainable improvement in both financing and fee income, and at the same time, emphasised greater discipline in managing overhead expenses,” said chief executive officer Datuk Mohd Redza Shah Abdul Wahid.
“Equally important, our asset quality has significantly improved, leading to lower impairment cost, which, in turn, helped to enhance our earnings.”
For the period under review, financing income grew 17.9% to RM 461.4 mil while fee income saw strong growth of 44.6% year-on-year (y-o-y) to RM 31.7 mil.
The bank’s notable improvement in fee-based income was driven mainly by its continued focus on expanding the ar- rahnu business and wealth management services, in addition to increased corporate advisory activities.
Additionally, the bank recorded a RM7.2mil net write-back of financing and investment, as opposed to RM21.6mil allowances in the previous corresponding period.
“The retail segment remains a cornerstone of the banking industry. Our 33.4% growth in this segment reflects the increasing acceptance of our products in the market, underpinned by our competitive offerings and strategy to focus on niche and selective market segments.
“While growth is important, managing the quality of assets remains a top priority of the bank,” said Mohd Redza.
As of December 2012, the bank’s gross impairment ratio narrowed to 2.8% from 5.2% a year ago.
Total deposits increased to RM 16.5 bil, up 12.8% y-o-y, while savings deposits registered an encouraging growth of 19.7%, nearly hitting the RM1bil mark.
In terms of capital adequacy measures, the bank’s key capital ratio remained healthy, with core capital and risk-weighted capital ratio at 13.2% and 18.2%, respectively.