Thursday 28 Mar 2024
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KUALA LUMPUR: Lembaga Tabung Haji (LTH) declared a total bonus payment of 8.25%, comprising 6.25% annual bonus and 2% haj bonus, for its depositors for 2014.

The pilgrim fund reported a record high profit after zakat of RM3.26 billion for the year, a 24% increase from RM2.6 billion in 2013, and has more than quintupled its profit of RM641 million in 2006.

“LTH has made financial history as it posted a net profit after zakat exceeding RM3 billion. This has been the highest reported profit since LTH was established 51 years ago,” said Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom, in his speech at the announcement of the bonus yesterday.

However, revenue declined to RM3.29 billion in 2014, from RM3.73 billion a year earlier, due to a one-off gain from the disposal of its stake in Bank Islam in 2013.

During the year, the size of the fund’s investment assets grew 13% to RM54.1 billion from RM47.9 billion in 2013, with equities accounting for 46% of its total investments, follow by loan securities at 20%, money markets and other financial instruments (13%), and rental, financing and others (21%).

Going forward, LTH group managing director and chief executive officer Tan Sri Ismee Ismail said the fund remains cautiously optimistic amid the current economic outlook for 2015.

“I can say we are quite prepared to face adversity ... based on strategic asset location.

“With the depreciation of the ringgit and the reduction in oil prices, we will shift our [investment] focus for this year. We will be eyeing more domestic investments,” he said.

Currently, foreign investments constitute 5% of LTH’s investments, while domestic investments account for the major part of its investments.

Ismee said this is also in line with the government’s move to encourage government-linked companies and government-linked investment companies to invest locally.

Asked if LTH will look into unlocking the value of its property assets by setting up a real estate investment trust, Ismee said it does not discount any possibilities.

 

 

This article first appeared in The Edge Financial Daily, on January 23, 2015.

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