KUALA LUMPUR, 8 September 2021 – Lembaga Tabung Haji (TH) reported a total income of RM1.52 billion for the six months ended 30 June 2021 compared with RM1.55 billion for the same period in 2020, a minimal one percent reduction that reflects its resilience during difficult economic and business conditions.

The bulk of its income was derived from its fixed income investments that contributed RM942.6 million for the first half period, accounting for 62 per cent of its total income.

Investments in equities contributed RM219.9 million for the period under review, an improvement from RM184.2 million in the same period in 2020. Equity investments accounted for 14 per cent of total income. Property investments provided an income of RM174.7 million, followed by money market investments with an income of RM161.8 million.

After accounting for expenses and zakat, TH reported a net profit of RM1.22 billion for the six-month period to 30 June 2021, a slight drop of 2 percent against RM1.25 billion for the same period in 2020. The lower profit was partly affected by property investments as the property market was significantly affected by the global pandemic.

However, TH’s financial position remained strong with assets totalling RM85.92 billion exceeding liabilities of RM83.73 billion as at 30 June 2021. Operating expenses were flat compared against the same period last year, mainly due to prudent cost management amid challenging economic conditions. TH is also taking continuous measures to optimise expenditure to ensure its cost is managed efficiently.

As at 30 June 2021, total deposits amounted to RM81.14 billion, its highest level since TH was established 58 years ago. TH has 8.3 million depositors as at 30 June 2021.

Volatile and challenging economic background

The economic backdrop for the first half of the year continued to be challenging with rising Covid-19 cases due to new virulent strains and a renewed nationwide Movement Control Order. However, vaccinations have continued to accelerate and improve across the country.

investments like sukuk, which provides stable and secure returns over the long term.

TH’s equity investments also outperformed the benchmark Bursa Malaysia Hijrah Shariah Index which fell 7.45 per cent in the first half period. It focused on stocks with good fundamentals, with defensive qualities and good dividend track record.

“Our disciplined approach to investment reflects TH’s commitment to safeguarding depositors’ interest by preserving and enhancing their hard-earned savings meant to fulfil an important religious obligation. We are obviously saddened not to be able to organise the hajj this year, but we are taking all the necessary steps to improve upon preparations for hajj with new safety rules and requirements.”

“TH remains cautious of the second half of 2021 as new highly infectious Covid-19 variants emerge, but the rapid pace of vaccinations could be the silver lining for the economy,” said Group Managing Director and Chief Executive Officer Dato’ Sri Amrin Awaluddin.

Strong financial position

Dato’ Sri Amrin said TH appreciates the support of all its stakeholders, especially its depositors. TH has always and will continue to improve and strengthen its governance and operations in order to develop its resilience well into the future.

Moving forward, TH will continue efforts to improve its income through investments and efficient operational cost management to ensure sustainable and stable profit distribution to its depositors.

It will also continue to focus on governance, compliance and integrity to protect the interest of TH and its depositors. The government’s decision to establish the Royal Commission of Inquiry and have Bank Negara Malaysia to regulate TH in the interim is also not expected to affect TH operations and the daily transactions of depositors.

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08092021_TH PRESS RELEASE - TH REPORTS RESILIENT FIRST HALF INCOME OF RM1.52 BILLION .pdf