BIMB Integrated Annual Report 2019

39.2 % 38 % 25 % 21 % Financing by Islamic financial institutions accounted for Total funds placed with Islamic banks now represent The Family Takaful industry’s new business grew by General Takaful industry recorded a double-digit growth of total banking sector financing in 2019 compared to 37.7 % in 2018. of total banking sector deposits, up from 36.6 % in 2018. in 2019 compared to 13 % in the same period a year ago. in 2019 compared to 9 % in the same period a year ago. 105 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary 2019 MALAYSIA TAKAFUL SECTOR PERFORMANCE The insurance and Takaful sector’s earnings remained relatively stable in 2019 with stronger growth seen from the Takaful segment business. The domestic Takaful industry continued to charter resilient growth across major business lines and surpass its conventional counterparts with healthy growth momentum, due to a lower base, stable domestic consumption, and increasing consumer awareness. As at 31 December 2019, the Family Takaful industry’s new business grew by 25% compared to 13% in the same period a year ago. The sterling business growth is in tandem with the strong demand for credit-related Takaful from the business growth of mortgage and consumer loans arising from the Government’s aspiration to achieve 40% total Islamic banking assets target by the end of 2020. Together with the initiative under Budget 2020 to split the tax relief of Employees Provident Fund (“EPF”) contributions and Takaful contributions, the national insurance penetration rate is expected to increase as taxpayers take advantage of the tax relief benefits. Correspondingly, the General Takaful industry recorded a double-digit growth of 21% compared to 9% in the same period a year ago on account of the progressive impact of the tariff liberalisation and moderating economic growth. Following the implementation of Motor de-tariffication in July 2017, BNM continued in carrying out assessments on the impact of phased liberalisation. The General Takaful industry is anticipated to soar as a result of further liberalisation, witnessing more innovative Takaful solutions with competitive benefits and pricing to be introduced to suit the diverse consumer needs.