KUALA LUMPUR (Feb 26): BIMB Holdings Bhd saw its net profit increase 5.17% on year to RM161.86 million or 10.5 sen per share in the fourth quarter ended Dec 31, 2015 (4QFY15) from RM153.91 million or 10.3 sen per share a year ago on higher income derived from investment of depositors and shareholders' funds as well as higher net income from its Takaful business.

In a filing with Bursa Malaysia today, BIMB reported that its revenue grew 16.12% to RM884.26 million in 4QFY15 from RM761.5 million in 4QFY14.
 
For the full 12 months (FY15), BIMB saw its net profit grow 2.81% to RM547.28 million or 35.53 sen per share from RM532.33 million or 35.64 sen per share in FY14 while revenue for FY15 expanded 11.45% to RM3.31 billion from RM2.97 billion in FY14.

In a press release accompanying its results, BIMB said the group recorded return on equity of 24.24% with return on assets of 1.51% for FY15.

Bank Islam Group reported a profit before zakat and tax (PBZT) of RM685.66 million for FY15, down by 2.43% from a year ago, due to finance cost incurred on the issuance of subordinated sukuk murabahah, higher cost of deposits and incremental operating expenses.

The Bank's network expansion also contributed to the increase in operating expenses as five more branches were opened during FY15, bringing the total number to 144 branches to date.

Despite this, the bank achieved a double-digit financing growth of 16.16% at RM34.29 billion as at December 2015, almost double the rate expected for the banking industry, the statement read.

"Despite the strong expansion in the financing portfolio and amidst the continuously challenging economic environment, the assets quality remained resilient with a low gross impaired financing ratio of 1.09% as at December 2015, lower than 1.14% registered as at December 2014," the statement read.

BIMB said the strong asset quality is a result of the bank's robust risk management, stringent underwriting standards and a cautious stance on implementing measures in its approval processes as well as putting in efforts towards effective recovery processes.

Customer deposits grew 6.21% to reach RM43.56 billion as at December 2015. The current and savings (CASA) ratio stood at 35.03%.

Gross impaired financing ratio stood at 1.09% while capital ratio stood at 15.32% as at December 2015.

The bank's financing to deposits ratio remained healthy at 78.71%, the statement read.

Takaful Malaysia Group recorded an increase of 9.38% in PBZT to RM204.21 million in FY15 compared to RM186.7 in FY14 due to higher wakalah fee income.

Operating revenue increased by 8.2% to RM1.79 billion in FY15 from RM1.65 billion in FY14 due to higher sales generated by both Family Takaful and General Takaful business as well as higher net investment income.

On prospects, BIMB said Bank Islam will focus on liability management, further enhancing its assets quality and maintaining a healthy capital position.

The bank also plans to maintain its cautious and stringent underwriting standards to uphold its asset quality, aggressive collection strategy and continue with its assessment of the capital requirements to ensure that it is well positioned to support the bank's business growth strategies.

Takaful Malaysia 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.

BIMB shares closed 6 sen or 1.69% lower at RM3.48 at noon market close today, with a market capitalisation of RM5.45 billion.