TH announces 3.10 per cent profit distribution

KUALA LUMPUR - Lembaga Tabung Haji (TH) has declared a 3.10 per cent profit after zakat involving RM2.46 billion for the 2021 financial year.

Minister in the Prime Minister’s Department (Religious Affairs), Datuk Idris Ahmad said the distribution of profit would benefit about 8.4 million TH depositors with RM219 million more profit compared to RM2.24 billion for the 2020 financial year.

He said the profit distribution is competitive taking into consideration the rate is higher than the average Islamic banking fixed deposit rate for 12 months which is 2.36 per cent.

"The 2021 annual return rate is reasonable after taking into consideration the challenging sukuk and equity business and market conditions last year.

"The financial position of TH remains strong with assets totalling RM88.73 billion which exceeds its liability of RM85.51 billion on Dec 31 2021,” he said at the announcement of 2021 TH Profit Declaration at Menara Tabung Haji here today.

Idris said the return also took into consideration RM107 million in zakat which was paid on behalf of depositors.

He said the savings guaranteed by the government exceeded RM83.33 billion which is the highest in the 59-year history of TH.

"The total operating cost also fell by four per cent compared to 2020 with prudent financial management measures,” he said.

Also present were TH chairman Tan Sri Azman Mokhtar and TH group managing director cum chief executive officer Datuk Seri Amrin Awaluddin.

Meanwhile, Azman said the value of profit declared is reasonable which met TH expectations based on the institution’s budget apart from the prevailing economic factors.

"Besides that, the rate also took into consideration the factor of TH as the pilgrimage fund for future depositors,” he said. - BERNAMA