Tabung Haji announces RM1.25 bil net profit for first half of 2020

PETALING JAYA: Lembaga Tabung Haji (TH) today announced a net profit of RM1.25 billion for the first half of 2020 compared with RM849.66 million in the same period last year.

In a statement today, the pilgrimage fund said it recorded RM1.55 billion in investment income supported by sukuk and equity investments with total assets exceeding liabilities by RM1.86 billion as at June 30, 2020.

Fixed income investments contributed RM1 billion or 65% of total investment income from January to June 30, 2020. Property investments generated an income of RM204.57 million, Islamic money market investments contributed RM187.13 million and RM150.27 million was derived from equity investments.

Total deposits improved to RM73.86 billion as at June 30, 2020, compared with RM69.42 billion on Dec 31, 2019.

TH said it was preparing for a more challenging haj management next year that takes into account the Covid-19 pandemic, following the postponement of the 1441H/2020M haj season for Malaysian pilgrims.

“The significant impact of Covid-19 on the world economy and the country is a major challenge for TH in managing its investments and protecting the interests of depositors,” said TH group managing director and CEO Nik Mohd Hasyudeen Yusoff.

“We have also taken steps to identify the impact of Covid-19 on our investments through regular monitoring. Operationally, TH needs to be more efficient by improving its services and reducing costs,” he added.

With the Bursa Malaysia and FBM KLCI Index returning to almost the same levels as before the pandemic, TH said it was clear that Malaysian financial markets had improved due to the resumption of economic activities and government-backed stimulus efforts. - FMT