Takaful Malaysia profit falls to RM21.2m
Aug 31st, 2007 by 1takaful
Source: The Malaysian Reserve, 30th August 2007
A combination of lower share income from General Takaful business and higher management expenses in fiscal year ended June 30 has held back Syarikat Takaful Malaysia Berhad (Takaful Malaysia) from posting a higher net profit for the period.
Despite a 12.8% jump in revenue to RM1.9 billion, it only managed to squeeze a RM21.2 million net profit, 36.5% lower than what it did in fiscal 2006 where the bottom line was RM33.6 million made from made from RM969.1 million sales.
In a filing to Bursa Malaysia yesterday, the Syariah-compliant insurance services provider said the company’s share of income from General Takaful business plunged by 44.07%, or RM38.01 million, from RM86.25 million in FY06 to RM48.24 million in the current year under review.
It said, however, the higher share of income from family takaful business of RM120.5 million in FY07 as compared to RM71 million in FY06 has softened the impact of the lower share of income from General Takaful business and higher management expenses for the year.
The group recorded a growth of 12.82%, or RM127.7 million, in its operating revenue from RM969.1 million in FY06 to RM1.09 billion in FY07.
It noted that the growth was mainly contributed by the increased operating revenue at the company level by 12.59%, or RM104.9 million, from RM833.4 million in FY06 to RM938.3 million in the current financial year under review.
For its fourth quarter (4Q) of FY07, Takaful Malaysia’s net profit dropped by 17.1% to RM7.83 million, or 5.1 sen a share from RM9.43 million, or 6.18 sen a share, previously.
It made 3.2% more revenue at RM289.5 million in the quarter compared to RM280.6 million sales in the same period a year ago.
The group registered a higher operating revenue of RM289.5 million, an increase of 3.18%, or RM8.91 million, from RM280.6 million in the preceding year’s corresponding quarter.
It said the higher operating revenue was mainly attributed to the growth in the company’s operating revenue of 6.59%, or RM17.14 million, from RM260 million recorded in 4Q06 to RM277.1 million in the 4Q07.
The group’s profit before tax for the current quarter under review decreased 41.36%, or RM5.24 million, to RM7.43 million from RM12.67 million in the preceding corresponding quarter.
Likewise, the lower profitability was mainly due to the decrease in the share of income from General Takaful business to RM4.43 million in the current quarter from RM21.53 million previously.
It also said prospects for the takaful industry in the next financial year continue to be encouraging.
“Amidst greater competition from new takaful operators, the company is positioning itself to continue to be at the forefront the strengthening of human resources particularly in the area of business development, marketing and operations,” it said.