KUALA LUMPUR (July 27): Syarikat Takaful Malaysia Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) rose 16.9% to RM45.53 million or 5.55 sen per share, mainly attributable to higher wakalah fee income.

The company, which is 60.25%-owned by Lembaga Tabung Haji's subsidiary BIMB Holdings Bhd, posted a net profit of RM38.95 million or 4.78 sen per share for 2QFY15.

Revenue came in 6.6% higher at RM462.21 million versus RM433.53 million in 2QFY15, mainly attributable to higher sales generated by both the family takaful and general takaful business, the company said in a filing to Bursa Malaysia today.

No dividend was declared for the quarter.  

For the first half of the financial year ended Dec 31, 2016 (1HFY16), Takaful Malaysia’s net profit gained 8.2% to RM92.16 million or 11.27 sen per share from RM85.17 million or 10.45 sen per share a year earlier, underpinned by higher wakalah fee income.

Revenue rose 9.4% to RM1.09 billion from RM995.99 million in 1HFY15, also due to higher sales generated by both the family takaful and general takaful business.

On prospects, Takaful Malaysia said it will continue its value proposition of rewarding its customers with 15% cash back for general takaful products and establish a strong foothold in the local insurance and takaful arena, as the preferred choice for insurance.

"The successful implementation of core initiatives in operational excellence, technology driven capabilities, product innovation and performance-oriented culture will enable us to be ahead of our competitors, increase our overall market shares and continuously improve shareholders' value," it added.  

Takaful Malaysia shares closed unchanged at RM4 today, for a market capitalisation of RM3.28 billion.