KUALA LUMPUR: The nation’s first Islamic bank, Bank Islam Malaysia Bhd (Bank Islam) has exceeded its internal financial performance target, according to its managing director Datuk Seri Zukri Samat.
Datuk Seri Zukri Samat. “Looking at the current trend throughout the months of July, August and September this year; we have been on track. I think we can expect another good financial record for our new 18-month financial period ending this December 31, as we are shifting our fiscal year-end to be in line with the calendar’s year-end, as per our parent holding Lembaga Tabung Haji (Pilgrims Management and Fund Board),” he told reporters at a press conference here yesterday.
Although no details on the actual figure of the bank’s target were disclosed, Zukri related to the media on the group’s financial performance for the full-fiscal period ended June 30 this year.
“We registered a record profit-before-tax of RM313 million for the year ended June 2010 – the highest level attained since the bank’s inception in 1983. That gives our return on equity at 16.2 per cent, which is above the industrial average of 13.9 per cent. That is the indication.”
Similarly, the bank recorded a non-performing financing level of 3.24 per cent in the same period – relatively higher than the industry average of about 2.1 per cent.
Moreover, Zukri said Bank Islam would continue its consumer-centric initiatives by introducing 11 new convenient consumer products soon.
“These are not really new products as other banks have done it already, but it will be new for us. We hope to come out with these products, hopefully by the end of this year after completing all regulatory processes.
“To date, Bank Islam has total assets worth RM30.3 billion, with total financing amounting to RM12 billion. Out of the total financing amount, 75 per cent consist of consumer financing. So yes, we are very much consumer-centric,” he underlined.
Meanwhile, Zukri added that Bank Islam would be gearing up on its plans to go abroad – leveraging on the rise of syariah-compliant financial systems as the instrument of choice among banking consumers.
“It has always been part of the pillars within the bank’s Stability Growth Plan (SGP) for the period of July 1, 2009 until December 31, 2012. We are still looking at it, especially in this part of the Southeast Asian region.”
However, he pointed out that such a plan would have to consider certain aspects, especially in terms of having the right infrastructure to accommodate Islamic banking.
“Islamic banking is not as straightforward as conventional banking. You need to have an Islamic money market. As such, we cannot just go and expand blindly overseas. Those countries should have the regulations and infrastructure to accommodate Islamic banking.
“In this region, however, nations like Indonesia, Singapore and Brunei have that infrastructure, hence our focus on the region. We do not any specific discussions with regards to the Middle East markets – but with the right party, we will consider it,” he stated.
Notably, Zukri also highlighted the nation’s status as the region’s premier syariah-compliant financial hub.
“I must say, there is nothing as conducive and comprehensive as to what we have here in Malaysia, where we have the full array of infrastructure to accommodate the Islamic banking system. This further aligns our direction towards being the world’s Islamic financial centre, with all the ingredients ready.”
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