TH announces 3.05% dividend

Tabung Haji says it will pay out RM2.1 billion this year, after last year’s record low dividend of of RM913 million.

PETALING JAYA: Tabung Haji (TH) today announced a profit distribution after zakat of 3.05% for the 2019 financial year ending Dec 31, 2019.

In a statement today, the Muslim pilgrimage fund said this year’s total payout would amount to RM2.1 billion.

TH has more than nine million depositors. Last year’s record low dividend of 1.25% meant they were paid out RM913 million.

The fund also said its investments generated RM3.3 billion worth of income in 2019, of which RM1.2 billion was raised in the fourth quarter.

TH said it recorded a profit after zakat of RM1.9 billion for the 2019 financial year, an increase of 19% (RM300 million) from RM1.6 billion for the 2018 financial year.

TH also said its strong financial performance had enabled it to ensure haj pilgrimage costs of RM9,980 for first-time pilgrims last year, as opposed to private packages which cost RM22,900.

It attributed its improved financial performance to sustainable investments and cost reductions over the past year, stating that its shift to more stable investment assets had helped ease pressure from the volatile stock market following the global trade war.

“Overall, the income from TH’s investments are more stable, with fixed income investment assets making up 58% or RM1.9 billion of the profits, while property, equity investments and Islamic money market instruments contributed RM500 million (15%), RM500 million (15%) and RM400 million (12%) respectively,” it said.

TH’s assets and liabilities stood at RM74.3 billion and RM71.4 billion respectively as of Dec 31, 2019, making for net assets of RM2.9 billion before dividends were paid out to its depositors.

TH said its profits after zakat took into account the RM86 million for zakat payments to the various state Islamic councils and RM370 million for the management and provision of facilities to haj pilgrims.