Bank Islam non-fund based revenue to rise 5%

KUALA LUMPUR: Bank Islam Malaysia Bhd expects its non-fund based income contribution to revenue to increase by at least 5% for its current financial year ending June 30, 2009.

Non-fund based income contributed 5.8% to revenue during the financial year ended June 30 last year.

The increase would be backed by the newly launched An-Najah NID-i and other wealth management products, managing director Datuk Zukri Samat said.

“Our full year results for the year ended June 30 which will be out soon should already show a significant increase in our non-fund base income contribution,” he said after the launch of the An-Najah NID-i, a capital-protected structured investment product yesterday.

Bank Islam said the new product targeted at the fast-growing global health care sector. “It is the first Islamic structured investment offering in Malaysia that is focused on health care,” he said.

Zukri said the product offered 100% capital protection when held to maturity of three years.

“Simulation of historical back testing showed a potential annualised return of between 5% and 16.4% or an average of 9.3%, which is substantially higher than fixed deposit rates,” he said.

The bank was targeting an initial fund size of RM300mil and the funds would be invested in Islamic negotiable instruments and the Baraka Aging Population Index options.

The index comprises 30 stocks selected from a basket of 2,400 stocks from the Downes Islamic Market World Index.