Bank Pembangunan Malaysia Berhad Announces 2019 Financial Results and Way Moving Forward
KUALA LUMPUR, 26 June 2020 – Bank Pembangunan Malaysia Berhad (BPMB) held its Annual General Meeting yesterday. The Bank also launched its inaugural annual integrated report for the financial year ended 31 December 2019.
The Bank recorded notable achievements in 2019 including a substantial 45.6% increase in the Group’s Profit Before Tax and Zakat to RM380 million from RM261 million in 2018. This is primarily attributable to lower impairment allowance, higher collection from recoveries and gains on disposal of investment securities.
Its Total Group Assets remained steady at RM25 billion while Total Liabilities reduced notably from borrowings and redeemable notes maturities during the year. Earnings Per Share leapt 47.1% YoY from 5.56 sen to 8.18 sen per share contributed by higher net profit garnered in FY2019. The Bank’s Cost to Income Ratio (CIR) increased from 13.1% to 16.5% in FY2019 and this is attributable to a drop in net income. However, the CIR remains the lowest among its Development Financial Institution (DFI) peers. In view of the Bank’s notable performance, the shareholders have approved a dividend payment of RM152,213,628.40 inclusive of a special dividend, for the financial year ended 31 December 2019, making it the highest dividend to be paid in BPMB’s history.
BPMB also raised the bar in financial reporting with the publication of its inaugural annual integrated report, themed “Impact in Mind” in accordance with the Integrated Reporting Framework. The report, aligned with the Malaysian and international guidelines and recommendations, also adheres to Bank Negara Malaysia’s (BNM) policy documents on Corporate Governance, Corporate Strategic Plan, Financial Reporting for DFIs and Performance Management Framework. The annual integrated report will be made available via the Bank’s website at www.bpmb.com.my
BPMB launched its 3-year Strategic Plan 2020 – 2022 earlier in the year which will steer the Bank into the future, gearing towards its new Vision to become Malaysia’s leading developmental partner and its Mission of impactful delivery with strategic outcomes. With the plan implemented, BPMB has embarked on a paradigm shift to be sector agnostic aligned to sustainability, digitalisation and inclusivity.
“BPMB has since its inception, provided a path to the country’s infrastructural solutions. Our role has expanded beyond serving the early developmental needs and today, focus is placed on creating and sustaining positive impact as we transform to meet the future needs of the nation”, said BPMB Chairman Datuk Zaiton Mohd Hassan.
President/Group Chief Executive Officer Arshad Mohamed Ismail also stated, “BPMB’s strong financial performance will enable us to undertake our developmental role more effectively. We have our work cut out for us under the Bank’s 3-year strategic plan and we now need to focus on executing the plan whilst preserving our financial foundation.”
An impact assessment framework was developed to measure BPMB’s impact on national development in collaboration with Bank Negara Malaysia, the relevant ministries and the World Bank Group. The framework was developed to ensure support is provided to projects that balance positive impact on the present as well as the future. BPMB will assess projects to ensure they make a sustainable and meaningful contribution to the nation’s development and support projects that benefit the people, the environment and national development. This evidence-based approach will guide the Bank to enhance the developmental impact of its operations in line with the national development agenda while remaining financially sustainable.
About Bank Pembangunan
Bank Pembangunan Malaysia Berhad (BPMB) was incorporated on 28 November 1973 with a role in the development of the Malaysian economy by assisting entrepreneurs involved in small and medium-sized industries through the provision of various financing facilities, training and advisory services, particularly to Bumiputera entrepreneurs. Today, BPMB is providing medium to long-term financing to the strategic sectors of the economy.
Owned by Minister of Finance Incorporated, BPMB has been accorded the highest rating ‘AAA’ by both RAM Rating Services Berhad (RAM) and Malaysia Rating Corporation Berhad (MARC). It is regulated and supervised by Bank Negara Malaysia under the Development Financial Institution Act 2002.
With a Group Total Assets value of RM25 billion (as at 31 December 2019), the BPMB Group is well-positioned to meet the financing and business development needs of Malaysian businesses.
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