KUALA LUMPUR (Nov 30): BIMB Holdings Bhd's net profit in the third quarter ended Sept 30, 2017 (3QFY17) rose 30.5% to RM183.43 million from RM140.61 million, mainly due to net write-back of allowances for impairment against a net allowance charged for impairment in the corresponding quarter in FY16.

In a filing with Bursa Malaysia, BIMB said profit before zakat and tax (PBZT) climbed 19.3% year-on-year to RM270.8 million from 3QFY16's RM226.9 million. Quarterly revenue came in at RM912.74 million, climbing 4.4% y-o-y from RM874.54 million.

For 3QFY17, Bank Islam Malaysia Bhd achieved a PBZT of RM223.5 million, rising by RM41.7 million or 23% from RM181.8 million in the same period a year earlier. The increase in PBZT was mainly contributed by a net allowance for impairment on financing and advances recovered of RM43.8 million, as compared to a net allowance charged of RM22.2 million in 3QFY16.

"The improvement was mainly contributed by lower net allowance charged for collective assessment by RM35 million and higher bad debt recovered of RM39.6 million," BIMB said.

However, total overheads were higher by RM26.1 million or 11.7% y-o-y, mainly due to higher staff costs and general expenses.

As for Syarikat Takaful Malaysia Bhd, it posted a PBZT of RM71.3 million, a rise of 12% y-o-y from RM63.8 million in 3QFY16, thanks to an increase in net wakalah fee income and lower management expenses.

For 3QFY17, Takaful Malaysia generated operating revenue of RM476.2 million as compared to RM427 million in the corresponding quarter of FY16, mainly attributable to higher sales generated by both the Family Takaful and General Takaful business.

"For the quarter under review, Family Takaful recorded gross earned contributions of RM303 million, consistent with gross earned contributions of RM302 million in the same period last year. Family Takaful business recorded net benefits and claims of RM148.9 million, a decrease of 23% as compared to the corresponding quarter of preceding year. The decrease was mainly due to decrease in medical claims," BIMB said.

"Investment income for the Family Takaful business for the current year's quarter of RM59.5 million is consistent with investment income of RM59.8 million in the corresponding quarter of preceding year," it added.

Meanwhile, General Takaful reported gross earned contributions of RM140.3 million, growing 15% y-o-y from 3QFY16's RM121.7 million, mainly driven by the fire and motor classes.

Net benefits and claims, according to BIMB, totalled RM44.4 million for the quarter under review, an increase of 39% y-o-y, as claims relating to the fire and motor classes grew.

"Investment income for the General Takaful business of RM7.1 million, lower by 6% as compared to RM7.5 million in the corresponding quarter of preceding year. The decrease was mainly due to lower dividend income from equity securities," BIMB said.

BIMB declared an interim single tier dividend 14 sen per share, equivalent to RM229.3 million.

For the cumulative nine months of FY17 (9MFY17), BIMB's net profit climbed 12.1% y-o-y to RM470.2 million from RM419.57 million, while revenue improved to RM2.78 billion from RM2.65 billion in 9MFY16.

BIMB said in a separate statement that annualised pre-tax return on equity stood at 20.9% and annualised pre-tax return on assets stood at 1.6%.

On prospects, BIMB explained that for Islamic banking, Bank Islam is expected to continue its focus on the 3D (deposits, defensive strategy, digitally immersed) strategy, and will also continue to manage liquidity and deploy capital efficiently in its operations.

As for Takaful Malaysia, it will continue to emphasise 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. Takaful Malaysia will amplify its presence as the preferred choice for insurance through various advertising and marketing activities and promote its unique proposition of rewarding 15% Cash Back to its General Takaful customers for no claims during coverage period," BIMB said.

Takaful Malaysia will also enhance its distribution channel by accelerating digital initiatives to optimise its operations and marketing activities, cultivating its digital presence through an online sales portal and integrated online marketing initiatives as part of its long-term strategy to meet the growing needs of the consumers.

BIMB closed unchanged at RM4.30, valuing it at RM7.04 billion.