Published: Monday May 04
By Zaidi Isham Ismail
The development bank posted a profit before zakat and tax of RM146.2 million last year, reversing its net losses of RM69.9 million in 2010 and RM87.1 million in 2009.
SME Bank managing director Datuk Mohd Radzif Mohd Yunus said for 2012, it expects lower profit due to the high holding cost in managing funds and lower margin as its interest rates are lower compared with the industry's.
"Although global economic conditions are still uncertain, we hope to make a profit by remaining sustainable ... through managing asset base and liabilities, and constantly engaging with the government," Mohd Radzif said at a press conference on the bank's 2011 results here yesterday.
SME Bank expects eight per cent growth in loans this year, which will be distributed to small and medium enterprises involved in oil and gas, education, wholesale and retail, healthcare, manufacturing and tourism sectors.
The bank, fully owned by the Ministry of Finance, lent some RM3.9 billion last year.
In 2011, the bank saw a portfolio growth of 8.7 per cent from 4.3 per cent in 2010.
It approved loans from 1,380 customers compared with 635 in 2010 and posted a higher recovery income of RM42.8 million from RM32.8 million in 2010.
The bank, which was set up in 2005 and now has over 5,000 customers, has a non-performing loan rate of 16 per cent in 2011.
"We have to be aggressive so that the country's SMEs can contribute 40 per cent to gross domestic product by 2020, from 33 per cent currently," Mohd Radzif said.
The bank plans to raise RM3 billion from sukuk issuance over the next three years to reduce its dependency on government funds.
The Islamic bonds will be launched in July.
Mohd Radzif said SME Bank also plans to open three new branches in Kajang, Bintulu and Sungai Petani, with an investment of between RM150,000 and RM250,000 this year. It currently has 18 branches.
No comments:
Post a Comment