KUALA LUMPUR: BIMB Holdings Bhd’s net profit rose 8.28% to RM198.62 million in the third quarter ended Sept 30, 2018 (3QFY18), from RM183.43 million last year, due to higher contribution from its Islamic banking and takaful businesses.

Revenue grew 19.4% to RM1.09 billion from RM912.74 million, BIMB said in a Bursa Malaysia filing. It declared an interim dividend of 15.5 sen per share, amounting to RM262.5 million in total, to be paid “tentatively” at end-January 2019.

The group’s performance is mainly dependent on two main operating subsidiaries, namely Bank Islam Malaysia Bhd and Syarikat Takaful Malaysia Keluarga Bhd.

In 3QFY18, Bank Islam’s Profit Before Zakat and Taxation (PBZT) grew 0.7% year-on-year (y-o-y) to RM225 million, mainly as total income grew on higher fund-based income, thanks to the corresponding increase in base rate (BR) and base financing rate (BFR) following the 25-basis-point increase in overnight policy rate on Jan 25.

The improved PBZT was also due to the 10.4% y-o-y growth in net financing assets to RM44.3 billion as at end-September. The increase in total income was also contributed by higher non-fund-based income.

Meanwhile, Takaful Malaysia recorded a 33% y-o-y jump in PBZT to RM87.8 million, mainly due to higher net wakalah fee income.

For the first nine months of FY18 (9MFY18), BIMB’s net profit grew 10.73% y-o-y to RM520.67 million from RM470.2 million, while revenue strengthened 11.02% to RM3.08 billion from RM2.78 billion.

Bank Islam’s PBZT in 9MFY18 rose 5.8% y-o-y to RM625.7 million, again mainly due to higher income generated by the increase in the BR and BFR. Customer deposits and investment accounts (IA) stood at RM50.3 billion, up 9.1% y-o-y, while current and savings accounts and Transactional IA ratio was at 32.3% or RM16.2 billion.

As for Takaful Malaysia, it recorded a PBZT growth of 18.5% y-o-y to RM234.2 million in the cumulative period, on higher net wakalah fee income arising from the business growth in the family and general takaful business.

On prospects, BIMB said Bank Islam will focus on optimising risks and returns, resources and productivity, as well as its franchise value, underpinned by a disciplined balance sheet management.

As for Takaful Malaysia, BIMB said it will remain focused on sustaining its position as market leader in the family takaful business while expanding its market share in the general takaful business.