BSN projects 20% net income growth

Source from (The Sun Daily): http://www.thesundaily.my/news/485187

Published: September 11, 2012
Ee Ann Nee
sunbiz@thesundaily.com

KUALA LUMPUR (Sept 11, 2012): Bank Simpanan Nasional (BSN) expects net income to rise by 20% this year, driven by loans growth of 15% and non-interest income, said its deputy chief executive of retail banking, Winston E. Jeyaprakash.

Last year, BSN's net income stood at RM1.03 billion on revenue of RM1.46 billion.
BSN is aiming for a 15% increase in loans growth from RM945 million in 2011, while non-interest income is expected to account for 10% of its total revenue.

"We've established the infrastructure for wealth management and remittances and thus, we expect revenue to come from both interest and non-interest income (in 2012)," he saidtold reporters at BSN's Hari Raya Open House here yesterday.

"The loan-base revenue, through better product features and incentive for customers and giving competitive rates, will boost our income base," he said.

As of Aug 30, BSN has 2,016 registered agents for its banking beyond branches (3B) services, with 1.3 million transactions worth RM113 million.

"Although the government has given us five years to get 5,000 agents, we hope by the end of this year, we will have 3,000 agents," said Jeyaprakash.

He said the branchless banking concept started June this year, with its agents complementing the bank's existing branches.

"(Under the concept,) agents are able to perform normal banking transactions, simple withdrawals, deposits, and bills payments, and remittances – and it has been well accepted in the rural areas," he said, adding that the services target non-banking areas within a 30km radius in Sabah and Sarawak.