Tabung Haji announces income distribution after zakat 3.05 pct

Tabung Haji (TH) has announced a profit distribution after zakat (tithe) of 3.05 percent for the 2019 financial year (FY2019), with a payout totalling RM2.1 billion compared with RM913 million distributed in FY2018.

In a statement today, TH attributed the improvement in its financial performance to sustainable investments and prudent cost management, which led to the substantial growth in profit distribution compared to the previous year.

The pilgrimage fund said its income from investments stood at RM3.3 billion; RM1.2 billion of which was generated in the fourth quarter.

‘’Overall, the income from TH's investments are more stable, with fixed income investment assets accounting for 58 percent or RM1.9 billion of the profits, while real property and equity investments, as well as Islamic money market instruments contributed RM500 million (15 percent), RM500 million (15 percent) and RM400 million (12 percent) respectively," said TH.

Additionally, the shift in TH's investment strategy to more stable investment assets had successfully alleviated the pressure from the volatile stock market following the global trade war, among others.

As of Dec 31, 2019, TH's assets stood at RM74.3 billion, surpassing its liabilities which stood at RM71.4 billion.

For FY2019, TH recorded a profit after zakat of RM1.9 billion; an increase of 19 percent or RM300 million compared with RM1.6 billion for FY2018.

The profit after zakat had taken into account RM86 million allocated for zakat payments to the state Islamic councils in Malaysia and RM370 million for the management and provision of facilities to haj pilgrims.

The financial performance also enabled TH to maintain its haj pilgrimage cost at RM9,980 compared with the actual cost, which was RM22,900 for all Muassasah (private package) haj pilgrims who performed their haj for the first time last year.

Group managing director and chief executive office Nik Mohd Hasyudeen Yusoff said TH's income distribution was the balance from the profits from its investments after taking into account its expenditures, haj subsidy costs, zakat payments and management costs.

"As such, TH depositors will not only derive benefit from their savings but also directly contribute towards assisting Malaysian haj pilgrims to perform the fifth pillar of Islam as well as protecting the welfare of the asnaf (deserving recipients of zakat).

"TH pays the zakat on behalf of the depositors, thus they do not have to pay zakat on their savings and the profit they derive from it," he said.

Moving forward, TH said it will continue to improve the depositor's benefits from their savings following the shift to the Wakalah savings contract by introducing more added-value features, while ensuring a sustainable investment performance.

The income distribution for FY2019 is based on the depositor's average monthly minimum balance.

Depositors can view the income distribution credited to their account starting March 16 at Tabung Haji, Bank Islam and Bank Rakyat counters; Bank Islam, Bank Rakyat, Maybank and Cimb ATMs; Bank Islam, Bank Rakyat and Maybank online portals; or by visiting www.thijari.com.my.

For more information, they may also contact TH's contact centre at 03-62071919.

- Bernama