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Tuesday, 26 March 2019

Malaysian Islamic banking in 2019 to grow at the same rate as 2018 — RAM

26 March 2019 (The Edge Markets)

KUALA LUMPUR (March 26): Financing growth of the Islamic banking sector is expected to come in at around 10% to 11% this year, RAM Rating Services Bhd said, which is pretty much the same as the rate of growth in 2018.

The local rating agency said Islamic banking continued to expand at a much faster pace than conventional loans last year, coming in at 11% compared with the latter's 3.3% growth. It grew 10.3% in 2017.

For 2019, RAM is maintaining a stable outlook on the Malaysian Islamic banking sector, in line with its view on the overall domestic banking system.

"However, it may take longer to achieve Bank Negara Malaysia's 40% target for Islamic financing as a proportion of the overall system's loans by 2020," it said in the latest edition of its annual publication called "Islamic Banking Insight" today.

As at end-January 2019, Islamic financing comprised 32% of the overall system's loans.

While it may require more time to attain the targeted 40%, RAM co-head of financial institution ratings Wong Yin Ching said the Islamic banking industry has come a long way in terms of maturity and breadth.

Meanwhile, RAM noted that the asset-quality indicators of Islamic banks have remained relatively benign, with a gross impaired financing (GIF) ratio of 1.2% as at end-January 2019 and an annualised credit cost ratio of 27 basis points in the first nine months of 2018.

"That said, we note an uptrend in the absolute GIF of Islamic banks, which increased 13% in 2018," it said.

"On the other hand, the implementation of Malaysian Financial Reporting Standards 9 has bolstered loss-absorption buffers; the Islamic system's GIF coverage ratio had improved to 103% as at end-January 2019 from 89% as at end-December 2017.

"While the moderation in economic growth may affect borrowers' repayment capabilities and thus lead to an uptick in impairments, the asset quality of the Islamic banking industry is unlikely to deteriorate significantly," added RAM.

Last year, the Islamic banking system's deposits grew 12.4%, slightly slower than the 14.2% growth recorded in 2017.

"The bulk of the expansion stemmed from fixed deposits as banks are bracing for the implementation of the net stable funding ratio (NSFR) requirement.

"Despite the deferred adoption of the NSFR, margin pressure is unlikely to ease amid the ongoing keen competition for retail and small and medium enterprise deposits, as banks keep building up their funding bases. However, the overall outlook on profitability remains stable as banks keep a tight rein on operating expenses," RAM co-head of financial institution ratings Sophia Lee said.

The industry's liquidity coverage ratio stood at 143% as at end-January 2019. The Islamic banking system also remained well capitalised, with common equity tier-1 and total capital ratios of 13.3% and 17.6% respectively.

Tuesday, 19 March 2019

Takaful companies in Malaysia forecast 16% penetration rate in 2019

New Straits Times (19 March 2019)

KUALA LUMPUR: Takaful penetration rate among Malaysia's 32 million population is expected to surpass 16 per cent in 2019 from last year's 15.2 per cent, said Malaysian Takaful Association (MTA).
MTA chairman Muhammad Fikri Mohamad Rawi sees the low insurance penetration rate and young demographics as significant market growth opportunities that has yet to be tapped by the takaful sector.
He acknowledged the takaful sector will not, by 2020, be able to achieve the 25 per cent target under Bank Negara Malaysia’s Financial Sector Blueprint 2011-2020.
Takaful is a co-operative system of reimbursement or repayment in case of loss, structured to be Sharia-compliant and as an alternative to conventional insurance.
Nevertheless, MTA, which represent 15 operating member companies, vows to carry on with a host of outreach programmes “to raise awareness among Malaysians the importance of being insured.”
"Last year, the takaful penetration rate among Malaysia's population is 15.2 per cent," he said in a briefing here today. Also present were Takaful Ikhlas General Bhd chief executive officer Eddy Azli Abidin and Syarikat Takaful Malaysia Am Bhd chief executive officer Mohd Sabri Ramli.
"This year, with our outreach programmes among university students and continuous marketing of ‘Perlindungan Tenang’ among low income earners, we hope to reach 16 per cent penetration rate,” said Fikri, who is also Sun Life Takaful chief executive.
Sun Life Takaful is part of Sun Life Malaysia, a joint venture between Canadian insurer Sun Life Financial Inc and Malaysia’s sovereign wealth fund Khazanah Nasional Bhd.
Fikri said 'MTA is ready to give feedback on the ground' when Bank Negara consults players to set the next Financial Sector Blueprint beyond 2020.
Latest statistics from MTA revealed last year’s new takaful protection grew 14.5 per cent to RM324.2 billion in sum assured for all policies combined, compared with RM283.1 billion in 2017.
This year, he forecast the total sum insured to expand by double digits to reach RM400 billion.
“Last year, we saw RM4.91 billion in new business contribution for all certificates combined. This year, we hope to bump up the number to more than RM5 billion,” added Fikri.

Sunday, 3 March 2019

Unit amanah Islam (Islamic unit trust) diurus oleh PMB INVESTMENT


● PMB INVESTMENT menguruskan 15 dana Patuh Syariah yang dilaburkan dalam pasaran Malaysia dan ASEAN.
● PMB INVESTMENT adalah syarikat pengurusan dana Islam (IFMC) dengan sejarah peniagaan selama 52 tahun, bermula sejak 1967.
● Boleh melabur secara Tunai atau Skim Pelaburan Ahli KWSP (akaun 1).
● Rekod pulangan lepas yang memuaskan dan potensi pulangan cemerlang untuk pelaburan jangka panjang, insya Allah.
Jika berminat melabur dlm dana-dana patuh Syariah PMB INVESTMENT Berhad atau ingin menjadi perunding, sila hantarkan pesanan (whatsapp) ke dgn menulis:
Contoh: Pelabur Ahmad Ali 30 KL
Ahmad Sanusi - Pengurus Agensi/Perunding
PMB Investment Berhad
(Ahli kumpulan Pelaburan MARA Berhad)
Kuala Lumpur
Sejak 1967...52 tahun
"Pengalaman Kami. Keyakinan Anda"
*Prestasi lepas bukanlah jaminan prestasi masa depan sesuatu dana unit amanah 

Friday, 1 March 2019

Bank Islam Malaysia, Syarikat Takaful push BIMB Holding’s 4Q profit to RM161m

Malaysian Reserve - 1 March 2019
Improved earnings of Bank Islam Malaysia Bhd and Syarikat Takaful Malaysia Keluarga Bhd drove BIMB Holdings Bhd’s fourth quarter ended Dec 31, 2018 (4Q18), to a 7.85% growth to RM161.39 million from RM149.64 million in the previous corresponding quarter.
Revenue for the three-month period also rose 17.89% year-on-year (YoY) to RM1.12 billion from RM946.04 million. Earnings per share (EPS) stood at 9.53 sen against 9.14 sen in 4Q17.
For the full financial year (FY18), the Islamic financial holding company’s net profit grew 10% to RM682.06 million from RM619.84 million, while revenue jumped 12.9% to RM4.2 billion from RM3.72 billion posted in FY17.
“We are very pleased to announce that the strong performance translates to an after-tax return on equity (ROE) of 15.4%, outpacing most industry peers,” BIMB CEO Mohd Muazzam Mohamed (picture) said in a statement yesterday.
“(FY18) EPS was also higher at 40.36 sen compared to 37.94 sen in the previous financial year, while net asset per share improved to RM2.97 compared to RM2.77 as at the end of December 2017,” he added.
The group’s performance is mainly dependent on its two main subsidiaries — Bank Islam and Takaful Malaysia.
For the 12-month period, Bank Islam’s profit before zakat and taxation (PBZT) increased 5.6% to RM810.3 million against RM767.1 million a year ago.
The income growth was a result of the increase in the base rate and base financing rate by 25 basis points effective February 2018, and a strong financing growth of 8.5%.
The bank’s financing grew RM3.6 billion to reach RM45.7 billion in FY18, with the asset quality remaining strong and resilient, despite the robust expansion and challenging economic environment.
Its strong assets quality was reflected in the low gross impaired financing ratio of 0.92%, lower than the 0.93% registered at the end of 2017, which compared positively against the 1.49% registered by the banking system as at end-November 2018.
Bank Islam’s deposits also increased RM3.7 billion YoY, while investment accounts improved by RM900 million.
Meanwhile, Takaful Malaysia’s PBZT jumped 32.9% to RM337 million for FY18, compared to RM253.7 million last year, attributable to higher net wakalah fee income arising from the robust business growth in the family and general takaful businesses.
Its operating revenue rose 23.4% in the year to RM2.64 billion from RM2.14 billion in FY17, due to higher sales generated by both family and general takaful businesses.
For the 12-month period, family takaful’s gross earned contributions grew 27.2% to RM1.61 billion, mainly attributable to higher sales from credit-related products, while general takaful’s gross earned contributions were up 23.7% to RM685.8 million, contributed by the fire and motor classes.
Moving forward, BIMB said the Malaysian banking sector is expected to remain stable in 2019, despite ongoing challenges such as moderating loan growth and margins.
“Industry loan growth is expected to moderate to 5.1% in 2019 from 6.2% in 2018,” the group noted, adding that despite the challenging outlook for the banking industry, Islamic finance is expected to continue to be a major growth contributor to the banking industry.
(Malaysian Reserve - 1 March 2019)
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