BIMB FY12 earnings up 18.3% to RM250m

BIMB Holdings Bhd's earnings rose 18.3% to RM250.77mil in the financial year ended Dec 31, 2012 from RM212mil in FY11, driven by the growth in its net income on healthy financing and deposits from customers growth, coupled with improved asset quality.

It said on Wednesday revenue increased by 23.6% to RM2.517bil from RM2.036bil a year ago. It announced dividend of 3.5 sen a share.

BIMB said Bank Islam group reported a profit before zakat and tax of RM597.4mil, up 21.3% from the RM492.5mil in FY11. The improved performance was mainly attributed to growth in business activities.

"The group registered net financing growth of RM5.3 billion or 37.8% for 2012, which outpaced the domestic banking industry's growth of 10.4%.

http://biz.thestar.com.my/news/story.asp?f...26&sec=business

Hwang DBS Vickers: BIMB earnings to double post Bank Islam acquisition

Hwang DBS Vickers Research has maintained its Hold rating on BIMB HOLDINGS BHD at RM4.12 with a higher target price of RM4.30 (from RM3.90) after the banking group acquired the remaining stake in Bank Islam from Dubai Financial Group (30.5%) and LTH (18.5%) for RM2.8 billion.

In a note Friday, the research house said that post acquisition, BIMB’s earnings would double, adding that BVPS and EPS dilutive given the enlarged share base but ROE accretive.

The research house said that post acquisition, BIMB’s FY14F earnings will be enhanced by 60%.

“But the enlarged share base from 1,067m to 1,920m (rights plus fully diluted shares from warrants) will dilute FY14 BVPS and EPS by 3% and 11%, respectively, but the deal is ROE accretive (+2.4ppt) due to the larger earnings enhancement versus book value,” it said.

Hwang DBS Vickers Research said tighter measures on consumer loans could cap growth and cut its FY13-15 loan growth target.

“Maintain Hold; target price raised to RM4.30TP to account for the acquisition and rights impact,” it said.

Interim Single Tier Dividend of 3.50%

EX-date 23/09/2013
Entitlement date 25/09/2013
Payment date 23/10/2013

Shareholders approve Bank Islam acquisition, to complete deal by Dec

BIMB Holdings Bhd (BHB) shareholders today approved the acquisition of the remaining 49% equity interest in Bank Islam Malaysia.

Group managing director and CEO Johan Abdullah said the deal should be complete by mid-December this year.

The acquisition will be funded via a combination of a rights and warrants issue as well as sukuk issuance.

The issue price for the instruments have yet to be fixed.

To recap, BHB proposed to buy out the 30.47% stake held by Dubai Financial Group and the 18.53% stake held by Lembaga Tabung Haji in Bank Islam for a total of US$884.6 million.

The rationale behind the purchase is to consolidate the BHB group and to facilitate the implementation of coherent group wode corporate strategies and proposals.

buy before 5th May