KUALA LUMPUR, 9 July 2020 – Lembaga Tabung Haji (TH) has recorded RM1.55 billion in investment income during the first half of 2020, supported by sukuk and equity investments.
Fixed income investments contributed RM1 billion or 65 percent of total investment income for the period of January to June 30, 2020. Property investments generated an income of RM204.57 million while Islamic money market investments contributed RM187.13 million and RM150.27 million was derived from equity investments.
The increase in revenue generated a net profit of RM1.25 billion for the half year in 2020, as against RM849.66 million in the corresponding period for 2019. The total assets of TH exceeded its liabilities by RM1.86 billion as at 30 June 2020.
TH is also preparing for a more challenging hajj management next year, following the postponement of the 1441H/2020M hajj season for Malaysian pilgrims. This includes addressing new challenges such as the provision of services that takes into account the Covid-19 pandemic.
Challenging financial markets and economic conditions
The Covid-19 pandemic has impacted the world economy and financial markets significantly earlier this year and Malaysia was also affected. Unfortunately, the shock from Covid-19 also occurred at a time when the global economic environment was weak amid low crude oil prices and the ongoing trade war between the world's major economies.
As an institution responsible for the management of hajj and investments, TH was also affected by the impact of Covid-19 earlier this year, most notably from the measures put in place to halt the spread of the virus. However, financial markets have improved as economic activities are now allowed, complemented with Government measures to revitalise the broader economy. Bursa Malaysia, which fell by more than 23 percent at the height of the pandemic, has almost returned to the same level at the end of last year. The FBM KLCI Index closed at 1,500.97 points on June 30, 2020, which is only 5.5 percent from 1,588.76 points as at December 31, 2019. Nonetheless, this does not mean that the pressure on performance and valuation of TH’s investments, such as those in the property sector, has subsided.
“The significant impact of Covid-19 on the world economy and the country is a major challenge for TH in managing its investments and protecting the interests of depositors. We have also taken steps to identify the impact of Covid-19 on our investments through regular monitoring. Operationally, TH needs to be more efficient by improving its services and reducing costs," said TH Group Managing Director and Chief Executive Officer, Datuk Nik Mohd Hasyudeen Yusoff.
Strong depositors support
Datuk Nik is also grateful for the continued support from depositors during this challenging time. TH is confident that the pandemic will end and it will continue to work hard to provide the best services to depositors. Moving forward, digital services will be the main focus of TH as the majority of its depositors are technology-savvy.
Total deposits improved to RM73.86 billion as at 30 June 2020, compared with RM69.42 billion on 31 December 2019. During the same period, TH registered over 123,000 new savings account openings.
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