KUALA LUMPUR (Oct 20): Syarikat Takaful Malaysia Bhd saw its net profit increase 8.27% to RM48.57 million in the third quarter ended Sept 30, 2017 (3QFY17), from RM44.86 million a year ago, thanks to higher net wakalah fee income and lower management expenses.
Quarterly revenue rose 11.54% to RM476.24 million from RM426.97 million a year ago, which was mainly attributable to higher sales generated by both family takaful and general takaful businesses.
For the cumulative nine months ended Sept 30, 2017 (9MFY17), Syarikat Takaful saw net profit march up 9.76% to RM150.39 million from RM137.02 million in the same period a year ago, on improvement in profit, which was mainly due to higher net wakalah fee income as a result of its “robust business growth” in the general takaful business.
Cumulative revenue between January and September stood at RM1.62 billion in 9MFY17, a 7% increase from RM1.52 billion in the same period a year ago, on higher sales generated by both its family takaful and general takaful businesses.
As for its operations in Indonesia, Syarikat Takaful said cumulative profit before tax and zakat slumped 98.28% to RM30,000 in 9MFY17 from RM1.74 million a year ago, while cumulative revenue dropped 14.46% to RM111.48 million, from RM130.33 million in the same period last year.
“The Indonesian operations continued to be impeded by the window concept of promoting Islamic products practised by the conventional domestic players,” Syarikat Takaful, an Islamic insurance provider, said in a filing with Bursa Malaysia today.
“The takaful industry in Indonesia is anticipated to continue experiencing challenges due to the financial market volatility in addition to the economic conditions,” the Islamic insurance firm added.
In Indonesia, Syarikat Takaful provides an Islamic insurance business via its 56%-owned PT Syarikat Takaful Indonesia
On prospects, Syarikat Takaful said, “through its extensive range of products and services, the company is poised to sustain its position as the market leader in the Family Takaful business”'
“The company will amplify its presence as the preferred choice for insurance through various advertising and marketing activities and promote its unique proposition of rewarding a 15% Cash Back to its General Takaful customers for no claims during coverage period,” it added.
Shares in Syarikat Takaful, the sister firm to Bank Islam Malaysia Bhd, closed unchanged at RM3.83 today, valuing it at a market capitalisation of RM3.15 billion.