BIMB Integrated Annual Report 2019

Stellar Chart-Topping Financial Performance for 2019 For the year in review, Takaful Malaysia recorded a sterling performance and registered record net profit with double- digit growth on the back of ongoing digital initiatives, solid business expansion strategy, operational efficiency and underlying financial strength. Takaful Malaysia posted a record net profit of RM366.3 million for 2019 on the back of a 25.2% increase in its Profit After Zakat and Tax (“PAZT”) from RM292.6 million registered in the previous financial year. The double-digit growth profit of 25% outpaced the industry. Total gross contributions rose by 19.1% to RM2.8 billion in 2019 as compared to RM2.3 billion recorded in the last financial year end. MANAGEMENT DISCUSSION & ANALYSIS SUBSIDIARIES’ OPERATIONAL REVIEW TAKAFUL MALAYSIA: MAINTAINS MARKET LEADERSHIP Operating revenue increased by 18.4% to RM3.1 billion as compared to RM2.6 billion in 2018 contributed by solid performance in our underwriting activities, higher net Wakalah fee income arising from the growth in the Family Takaful business and higher net investment income. Family Takaful business generated gross contributions of RM2 billion for FY2019, an increase of 27% , compared with RM1.6 billion in the previous year. The increase was mainly attributable to higher sales from credit-related products. General Takaful business generated gross contributions of RM723.6 million , an increase of 2% over the previous year’s RM709.3 million, which came mainly from fire and commercial classes. Takaful Malaysia’s Return on Equity (“ROE”) continued to exceed the 30% level with an actual achievement of 33.1% from 32.7% in the previous financial year. Earnings Per Share (“EPS”) rose to 44.16 sen as compared to 35.79 sen in 2018 while total assets grew by 15.8% to RM10.3 billion from RM8.9 billion in the last financial year. 116 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance