TheStar
KUALA LUMPUR: Bank Islam Malaysia Bhd expects its non fund-based income contribution to grow to 10% by next June, underpinned by growth in its wealth management, investment banking and treasury divisions.
Its managing director Datuk Zukri Samat said the banking group wanted to increase its non fund-based income as revenue contributions from this segment was still very low.
Speaking to reporters at Bank Islam’s investment product launch briefing here on Aug 8, he said: “As of June 2007, our non fund-based income contributes only 5.8% to the bank’s revenue, which is small. But, we expect the contributions to increase.”
The banking group launched its first syariah-compliant fund, known as the An-Najah NID-i, which would invest in health care assets globally, including some of the pharmaceutical giants such as Pfizer Incorporated, Glaxo SmithKline plc and Abbott Laboratories.
Bank Islam had targeted the close-ended fund to have an initial fund size of RM300 million, in which most were expected to be derived from local investors.
“There is enough domestic appetite for us to achieve the initial target,” Zukri said, adding that the banking group is in talks with several clients and have received overwhelming response on this product.
Zukri said Bank Islam chose to focus on global healthcare because the combined factors of longer life expectancy, growing affluence and advancements in treatments for age and lifestyle-related diseases would generate greater demand for healthcare-related products and services globally.
“Demand for such services is expected to be relatively resilient through economic cycles and are necessities to societies,” he said.
Zukri added that Bank Islam is working on launching a few more structured products and unit trusts in the near future, and has plans to market some of these products in the Middle Eastern countries.
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