KUALA LUMPUR, June 26 ― Bank Pembangunan Malaysia Bhd (BPMB) recorded a substantial 45.6 per cent increase in profit before tax and zakat (PBTZ) to RM380 million for the financial year (FY) ended Dec 31, 2019 from RM261 million in 2018.

The bank said this is primarily attributable to lower impairment allowance, higher collection from recoveries and gains on disposal of investment securities.

It said cost to income ratio (CIR) increased from 13.1 per cent to 16.5 per cent in FY19, attributable to a drop in net income, but remained the lowest among its Development Financial Institution (DFI) peers.

"In view of the bank’s performance, the shareholders approved a dividend payment of RM152.21 million, inclusive of a special dividend, for the FY19, making it the highest dividend to be paid in BPMB’s history,” it said in a statement in conjunction with its annual general meeting (AGM) yesterday.

BPMB said it also raised the bar in financial reporting with the publication of its inaugural annual integrated report themed "Impact in Mind” in accordance with the Integrated Reporting Framework.

It said the report would be made available via the bank’s website at www.bpmb.com.my.

Meanwhile, president/group chief executive officer Arshad Mohamed Ismail said the bank’s strong financial performance would enable it to undertake developmental role more effectively.

"We have our work cut out for us under the bank’s three-year strategic plan and we now need to focus on executing the plan whilst preserving our financial foundation,” he said.

BPMB’s three-year Strategic Plan 2020-2022, launched earlier in the year, aimed to steer the bank into the future, gearing towards its new vision to become Malaysia’s leading developmental partner and its mission of an impactful delivery with strategic outcomes.

The bank, which provides medium to long-term financing to the strategic sectors of the economy, is owned by the Minister of Finance Incorporated. ― Bernama