Bank Islam eyes 20-25pc growth in financing

Bank Islam Malaysia Bhd targets its financing segment to grow about 20 per cent to 25 per cent this year from RM19.5 billion in the financial year ended December 31, 2012.

Its director of business development Khairul Kamarudin said the target would be achieved through the introduction of four new products.

"We are expected to come out with four new products related to technology and microfinancing in the second or third quarter.

"However we can't reveal it yet as we have not obtain any regulatory approvals, but all of this will be novelty to the market as we want to be heard in the industry," he told reporters after the "Al-Awfar Million Ringgit Campaign Prize Presentation Ceremony", here today.

Khairul said the bank is also targeting to reduce further its non-performing loan (NPL) ratio from the current 1.6 per cent.

"To sustain this number is also a challenge for us. Moving forward, the strategy that we are employing now has bagged some fruitful number for us.

"It is how we communicate with the customers. We have undertaken a behaviour study of customers...We know what our customers prefer," he said.

According to Khairul, Bank Islam aimed to increase its retail deposits by 15 per cent this year from RM7.9 billion currently.

At the event, Bank Islam Managing Director Datuk Seri Zukri Samat handed over a cash prize of RM1 million to Che Limah Che Cob, who won the Al-Awfar campaign.

Al-Awfar, which was launched in March 2009, comprises savings and investment products that offer cash as prizes to the account holders.

The Million Ringgit Campaign, which ran from Sept 19 to Nov 30, 2012, garnered over 17,607 entries and attracted deposits totalling RM347 million, of which RM217 million were from new-to-bank customers and the rest were from existing customers.

"Through our Al-Awfar campaigns, public awareness of the bank's products and services had risen significantly and this led to a win-win situation for our customers and the bank," added Zukri.-- Bernama