What is TH’s Profit Distribution?

• Profit distribution refers to the sharing of profits generated from TH’s investments in fixed income instruments, equities, properties, and money market activities throughout 2024.

• Distributions are made to depositors after deducting operational costs, Hajj financial assistance, and zakat payments made on their behalf.

• Each year, TH announces the profit distribution rate based on its current financial position and performance.

What is the profit distribution rate for 2024?

• The profit distribution for 2024 is 3.25% after zakat of 2.5775% has been paid on behalf of depositors.

• This profit distribution involves a total of RM2.92 billion and will benefit more than 9.54 million depositors.

How is the profit distribution calculated?

• The 2024 profit distribution is calculated using the same method as previous year, which is based on the average of the lowest monthly balance maintained throughout the year.

• The calculation formula for the 2024 Profit Distribution is as follows:
  Average Lowest Monthly Balance x 3.25% = (Lowest savings balance each month from January–December 2024 / Number of months) x 3.25%

Do depositors need to pay zakat on their savings and profit distribution in TH?

• TH depositors are not required to pay zakat on their savings or the profit distribution they receive.

• TH has paid zakat on behalf of its depositors in accordance with the decision made during the 17th Meeting of the National Fatwa Committee for Islamic Religious Affairs Malaysia held on 3 May 1979.

• As of 2024, the total zakat paid on behalf of depositors has amounted to RM1.47 billion.

How is zakat calculated?

• The zakat calculation on behalf of depositors is based on the Adjusted Working Capital method and the Khultoh principle (i.e., mixed assets). Several considerations are factored into the zakat calculation method:

  • The business zakat approach is deemed appropriate due to the wakalah (trustee) relationship, where depositors’ funds represent their interest in TH’s investment and business assets.

  • TH savings deposits are withdrawable upon request. Thus, the Adjusted Working Capital method is suitable.

  • The elements of wakalah and partnership, with depositors as principals, support the application of the Khultoh principle in zakat calculation.

• TH applies a zakat rate of 2.5775% in consideration of the difference in the number of days between the Hijri and Gregorian calendars, as recommended by TH’s Shariah Advisory Committee.

How is the profit distribution paid to depositors?

The profit distribution will be credited directly into eligible depositors’ active accounts.

Who is eligible to receive the 2024 Profit Distribution?

Eligible depositors are those who opened their accounts before 5 December 2024, remained active as of 31 December 2024, and continue to be active until the distribution is credited.

When can depositors check the profit distribution?

Depositors can check the credited profit distribution in their accounts starting 23 March 2025 (Sunday) via the THiJARI platform, TH counters, Bank Islam and Bank Rakyat counters, and TH’s strategic partner banks’ electronic channels, namely Bank Islam, Bank Rakyat, Maybank Islamic, CIMB Islamic, and AmBank Islamic.

What are the key factors influencing TH’s financial performance?

In 2024, TH’s performance was driven by Shariah-compliant investments, where fixed income instruments generated 50% of total income, equities contributed 35%, and returns from property and money market instruments made up the remaining 15%.

How does TH’s financial performance compare to other investment institutions?

• TH’s Profit Distribution rate cannot be directly compared to other investment institutions due to differences in purpose, risk tolerance levels, and liquidity requirements.

• TH was established to help Muslims save for Hajj. This objective influences its investment strategies, risk levels, and liquidity — all of which affect the return rate.

How did TH’s investment performance in 2024 compare to previous years?

• TH’s investment performance in 2024 was the best since 2018.

• TH adopted a diversified investment portfolio approach with resilient and sustainable profit-generating potential.

What is TH’s strategy to ensure competitive profit distribution rates in the future?

• TH has developed a 3-year Strategic Plan aimed at strengthening the sustainability of its financial and operational performance.

• With clear goals and strategies, this plan will guide TH in delivering its mandate effectively.

• This plan is driven by three (3) main pillars: Financial Sustainability, Renewal Initiatives, and Value Creation.

• It is further supported by nine (9) identified strategies to help TH achieve its aspirations and position itself strongly in a rapidly evolving external environment.