The distribution of profit after zakat for the financial year 2021 amounted to RM2.46 billion at the rate of 3.10% per annum (2020: 3.10%). The total profit distributed for 2021 is RM219 million higher than the RM2.24 billion that has been distributed for the financial year 2020.

The distribution for financial year 2021 benefits approximately 8.4 million TH depositors.

The profit distribution for the financial year 2021 is based on TH's performance and financial capability for the current year and is subject to compliance with the requirements of the Tabung Haji Act 1995. TH has recorded a revenue of RM3.24 billion for 2021 compared to RM3.15 billion for 2020; an increase of 2.9 percent. Fixed income and equity investments have supported income resilience in 2021 by accounting for more than 70 percent of the total.

Fixed income investments have generated RM1.70 billion which accounts for 52 percent of its total gross income. Income from equity investments has contributed RM0.65 billion which accounts for 20 percent of total income for 2021 and is 38 percent higher than RM0.47 billion in 2020. Real estate investments earned RM0.42 billion while Islamic money market investments generated a revenue of RM0.29 billion.

After taking into account expenditure, zakat allocation and share trading profit, TH recorded a distributable profit of RM2.48 billion for 2021, an increase of 2.1 percent from RM2.43 billion for 2020.

TH's financial position remained strong with assets of RM88.73 billion exceeding liabilities of RM85.51 billion as at 31 December 2021. Total Assets of RM88.73 billion and total Deposits at RM83.33 billion were the highest in TH's 59 -year history.

The distribution of profits to depositors is after taking into account zakat. TH pays zakat on behalf of our depositors and TH depositors no longer need to pay zakat on savings and profit distribution received, in line with the decision of the 17th Fatwa Committee Conference of the National Council for Islamic Religious Affairs Malaysia on 3 May 1979.

TH zakat allocation of RM107 million will be paid to all State Islamic Religious Councils on behalf of the depositors.

How is the profit distribution of 2021 calculated?

The method of calculating the profit distribution for 2021 is the same as in the previous years, which takes into account the average lowest savings balance per month throughout 2021 and multiplied by the set rate of 3.10% for 2021.

The detailed calculations are as follows:
Average Lowest Monthly Savings Balance x 3.10 % =
(Lowest savings balance per month from January – December 2021 / Number of Months) x 3.10%

• The account is in active status as at 31 December 2021 and remains active on the date the profit distribution credit is made.
• Opened an account on or before 5 December 2021.

• Depositors with inactive and dormant accounts;
• Depositors with accounts closed before the date the profit distribution is made; and
• Depositors with accounts opened after December 5, 2021 (does not reach one full month).

• TH, Bank Islam and Bank Rakyat counters/branches
• www.thijari.com.my website
• the online portal of TH's strategic partners, namely Bank Islam, Bank Rakyat, Maybank Islamic, CIMB Islamic and Ambank Islamic.
• ATMs of TH's strategic partners, namely Bank Islam, Bank Rakyat, Maybank Islamic and CIMB Islamic.

Although the profit rate is the same, the total profit distributed for 2021 is RM219 million higher than the RM2.24 billion that has been distributed for the financial year 2020.

The 2021 rate of return is also reasonable after taking into account the challenging business environment and sukuk and stock markets last year, the difficult economic conditions and the ongoing effects of Covid-19 pandemic in 2021, and also the need for TH to:-

• Distribute profits prudently and sustainably according to TH’s ability.
• Build reserve holdings to ensure that TH's financial position remains strong for the future.

TH has recorded a revenue of RM3.24 billion for 2021 compared to RM3.15 billion for 2020, an increase of 2.9 percent. TH has also recorded a distributable profit of RM2.48 billion for 2021, an increase of 2.1 percent from RM2.43 billion in 2020.
 

TH was established to help Muslims make savings for Hajj. This goal influences the way TH formulates its investment strategy, the level of risk and the level of liquidity that will determine the rate of return earned.

Other investment institutions have their own goals and this will drive them to have different investment strategies, risk levels and liquidity levels as well.

This means, TH's profit distribution rate cannot be compared fairly with other investment institutions due to the different purposes of the establishment.

The inflow and outflow of total account savings in TH is by demand basis and is not subject to any limit. Therefore, it is reasonable that TH's profit distribution rate is to be compared to the rates offered by other Islamic banking savings deposits. The profit distribution rate for the financial year 2021 was higher than the average fixed deposit rate of Islamic banking for a period of 12 months (i.e 2.36 percent) and zakat has also been taken into account to be amortized on behalf of depositors.
Therefore, TH depositors no longer need to pay zakat on their savings and distribution of profits received.

TH will focus on implementing the Strategic Plan to improve its performance and governance.

TH will also diversify its domestic investment portfolio as well as making plans to increase overseas investments on a regular basis while taking into account reasonable risks.

TH's financial position remained strong with assets amounting to RM88.73 billion exceeding liabilities amounting to RM85.51 billion as at 31 December 2021.

The total deposit savings guaranteed by the Government has reached RM83.33 billion and is the highest deposit amount in the history of TH since its 59 years of establishment.

Along with austerity measures and prudent financial management, TH's operating costs have decreased by four (4) percent compared to 2020 as a result of prudent financial management measures.