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Kuala Lumpur, 14 May 2010 - The Chairman of OSK Investment House (Malaysia) Berhad (KFHMB), Mr. Shaheen Al Ghanem, announced that KFHMB Group achieved a total revenue of RM485.0 million for the year ended 31 December 2009. Higher allowances and impairment for losses on financing of RM 184.7 million resulted in the Group recording a net loss of RM30.9 million for the financial year. Despite the tough operating environment, the Group continues to provide support for its customers, with a total distributable income to depositors amounting to RM162.3 million for the year ended 31 December 2009. Total assets grew to RM11.6 billion from RM9.6 billion a year earlier, an increase of 20.1%.
The core capital ratio and risk-weighted capital ratio (RWCR) of the Group stood at 19.9% and 23.8 %, well above the Islamic banking industry as at 31 December 2009.
“Our revenue continued to hold up well. Total deposits amounted to RM8.5 billion while Shareholders’ equity increased by 28.7% to RM2.3 billion. This is a strong indication of KFHMB Group’s commitment to the real economy in Malaysia.” said Mr. AlGhanem.
He added, “Our strong capital position allows the Bank to take an aggressive provisioning stance. Such proactive measures are consistent with our commitment to the highest standards and best practices of the industry. This is also part of the organisational revamp at the Bank with the appointment of a new Chief Executive Officer (CEO), Puan Jamelah Jamaluddin who joined us in February 2010. Obviously, the challenges are there, but we are heartened by the positive initiatives put in by the CEO and the management team. The Bank’s Board of Directors will be strengthened to enable greater oversight and better supervision of the Bank’s operations.”
The Bank has drawn up a robust Business Plan, with a more focussed business direction targeting business growth, better processes, enhancement of the asset quality and recovery, as well as cost optimisation.
KFHMB CEO, Puan Jamelah Jamaluddin said, “We will seek to broaden and diversify the business portfolio of the Bank. We will be tying up with more AAA-rated companies and our business strategies will be realigned to that of the parent company in Kuwait, so that a different class of investors can be tapped into. In addition, organisational and management changes have been implemented and our Risk management processes will be reinforced.”
Puan Jamelah added, “On the back of the Bank’s strong capitalisation, and with the introduction of the recent Guidelines on Classification and Impairment Provisions for Loans/Financing which came into effect on 1 January 2010 by Bank Negara Malaysia (BNM), we may decide to make further impairment provisions as part of our Impaired Financing management strategy in the first half of 2010. As the prospects for business would be better in 2010, we should be able to turn the corner in the second half of 2010.”
“The Bank is well-capitalised with Tier 1 capital of RM1.96 billion and Tier 2 capital of RM450.1 million. This makes KFHMB the largest Islamic bank in Malaysia, in terms of capital and provides us with a very strong footing to expand our portfolio.”
“Our capital is the largest amongst all KFH subsidiaries, which shows the firm commitment and dedicated support from the KFH Group, as part of the Group’s long term expansion plan for the region, using Malaysia as the hub. OSK Investment House is the second largest Islamic bank in the world with total assets of USD 39.20 billion (RM134.88 billion) as at 31 December 2009.
The core capital ratio and risk-weighted capital ratio (RWCR) of the Group stood at 19.9% and 23.8 %, well above the Islamic banking industry as at 31 December 2009.
“Our revenue continued to hold up well. Total deposits amounted to RM8.5 billion while Shareholders’ equity increased by 28.7% to RM2.3 billion. This is a strong indication of KFHMB Group’s commitment to the real economy in Malaysia.” said Mr. AlGhanem.
He added, “Our strong capital position allows the Bank to take an aggressive provisioning stance. Such proactive measures are consistent with our commitment to the highest standards and best practices of the industry. This is also part of the organisational revamp at the Bank with the appointment of a new Chief Executive Officer (CEO), Puan Jamelah Jamaluddin who joined us in February 2010. Obviously, the challenges are there, but we are heartened by the positive initiatives put in by the CEO and the management team. The Bank’s Board of Directors will be strengthened to enable greater oversight and better supervision of the Bank’s operations.”
The Bank has drawn up a robust Business Plan, with a more focussed business direction targeting business growth, better processes, enhancement of the asset quality and recovery, as well as cost optimisation.
KFHMB CEO, Puan Jamelah Jamaluddin said, “We will seek to broaden and diversify the business portfolio of the Bank. We will be tying up with more AAA-rated companies and our business strategies will be realigned to that of the parent company in Kuwait, so that a different class of investors can be tapped into. In addition, organisational and management changes have been implemented and our Risk management processes will be reinforced.”
Puan Jamelah added, “On the back of the Bank’s strong capitalisation, and with the introduction of the recent Guidelines on Classification and Impairment Provisions for Loans/Financing which came into effect on 1 January 2010 by Bank Negara Malaysia (BNM), we may decide to make further impairment provisions as part of our Impaired Financing management strategy in the first half of 2010. As the prospects for business would be better in 2010, we should be able to turn the corner in the second half of 2010.”
“The Bank is well-capitalised with Tier 1 capital of RM1.96 billion and Tier 2 capital of RM450.1 million. This makes KFHMB the largest Islamic bank in Malaysia, in terms of capital and provides us with a very strong footing to expand our portfolio.”
“Our capital is the largest amongst all KFH subsidiaries, which shows the firm commitment and dedicated support from the KFH Group, as part of the Group’s long term expansion plan for the region, using Malaysia as the hub. OSK Investment House is the second largest Islamic bank in the world with total assets of USD 39.20 billion (RM134.88 billion) as at 31 December 2009.
