BIMB posts lower earnings for Q1, upbeat on Bank Islam listing

KUALA LUMPUR: BIMB Holdings Bhd's net profit fell 3.24 per cent to RM202.46 million in the first quarter (Q1) ended March 31, 2021 from RM209.24 million a year ago due to lower net income.

Revenue also declined 3.8 per cent to RM1.2 billion from RM1.24 billion as gross fund-based and non-fund-based income decreased.

The bank's gross fund-based income declined 11.1 per cent or RM87.3 million as a result of the negative effect of the overnight policy rate while non-fund-based income declined by RM65.4 million amid lower investment income.

BIMB did not declare any dividends for the first quarter.

Taking over its listing status, BIMB said Bank Islam Bhd will be the first pure-play full-fledged Islamic financial institution to be listed in Malaysia.

The exercise will improve the overall transparency of the bank whilst unlocking its latent value for shareholders.

"The re-organisation allows the bank and  subsidiaries to leverage on the strength as a group and deliver total Islamic financial solutions to the customers whilst continuously pursuing traction on the lines of businesses and channels," it said.

Meanwhile, for its takaful business under Syarikat Takaful Malaysia Keluarga Bhd, BIMB said the takaful business has been taking steps to strengthen its business resilience.

"Takaful Malaysia will continue with its innovative strategies via the implementation of its digital strategy, online solutions and digital ecosystem, expansion of its distribution capabilities, strategic partnerships with leading Islamic banks and brand awareness initiatives," it added.