Recommend Us | About Us | Back to Bernama.com

News | Financial Calculator | Home Financing | Archived News |

 

  Welcome to Bernama Banking & Finance Special Page     
 
Impact from OPR cut just temporary, says BIMB CEO
Last update: 15/05/2019

KUALA LUMPUR, May 15 (Bernama) -- BIMB Holdings Bhd (BHB) expects the impact from the recent cut in the overnight policy rate (OPR) to be temporary.

The Islamic banking group remains neutral on the OPR’s impact towards its bottom line for the financial year ending Dec 31, 2019 (FY19).

Chief executive officer Mohd Muazzam Mohamed said following the recent reduction of 25 basis points (bps) in the OPR by Bank Negara Malaysia (BNM), it has also reduced its base rate, which subsequently would lower income.

“But, at the same time, we also lowered our deposit rate. Hence, the impact is temporary,” he told reporters on the sidelines of the bank’s annual general meeting here, today.

BIMB has recently lowered its base rate BR by 26 bps to 3.77 per cent per annum from 4.03 per cent previously, while its base financing rate was also reduced to 6.72 per cent per annum from 6.98 per cent.

Commenting on the company’s neutral outlook, Mohd Muazzam said the impact from the OPR cut would be mitigated by another source of income, which they anticipated to perform better this year. 

That includes the fee-based income, especially the wealth management products from its wholly-owned unit Bank Islam Malaysia Bhd, as well as advisory arrangements from Syarikat Takaful Malaysia Keluarga Bhd, he said.

On loan growth target, it would moderate to between six and seven per cent for FY19 from 8.5 per cent previously, due to the challenging economic situation, he said.

“I believe the target would still higher than the industry’s average level,” he said, adding that currently, BIMB’s loan size has grown to about RM46 billion.

According to BNM recent banking data, loan growth slowed to 4.9 per cent year-on-year (y-o-y) in March this year compared with five per cent y-o-y in February 2019.

Meanwhile, Mohd Muazzam also expected the group’s return on equity (ROE) before tax to maintain above 15 per cent for FY19.

BIMB’s profit before zakat and taxation rose to RM810.3 million for FY18, up 5.6 per cent from RM767.1 million previously.

Its gross financing increased 8.9 per cent y-o-y to RM45.7 billion for FY18, following a robust growth in all segments, such as consumer (up 9.6 per cent y-o-y), commercial (up 9.8 per cent y-o-y ) and corporate (up 4.3 per cent y-o-y).

-- BERNAMA


 <Back>

Window of opportunity for Kazakhstan to be Islamic finance hub
Bank Muamalat posts RM241.2 mln PBT for FY 2019

 
Bank Muamalat's shopping treat for underprivileged children

Positive outlook for DPL Insurance Limited, says AM Best
Prudential app pulses with excitement, collaborating with DoctorOnCall, Babylon, AIME

 
Sure bet: VSure.Life first digital mobile insurance protection in Malaysia, SEA

CLOSING, MONDAY, JUL 22
US4.1110/1150
S'pore3.0219/0253
100 Yen3.8104/8151
Sterling5.1248/1306
Euro4.6109/6166
Source: Bank Negara Malaysia

Reduction in the overnight policy rate (OPR) by Bank Negara Malaysia would be good for consumer spending and investment;
Yes
No
Not sure
 
  Main | News | Insurance

© 2019 BERNAMA. All Rights Reserved. Disclaimer | Privacy Policy| Security Policy
This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA.
Best viewed in Firefox 8.0 & Internet Explorer 8.0 with 1024 x 768 resolution