Tabung Haji announces 3.10% profit distribution

Lembaga Tabung Haji (TH) has declared a 3.10% profit after zakat involving RM2.46 billion for the 2021 financial year.

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

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

“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 as of Dec 31 2021,” he said at the announcement of the 2021 TH profit declaration at Menara Tabung Haji in Kuala Lumpur today.

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

He said the savings guaranteed by the government exceeded RM83.33 billion – the highest in TH’s 59-year history.

“The total operating cost also fell by 4% compared to 2020 with prudent financial management measures,” he said.

Also present were TH chairman Azman Mokhtar and TH group managing director and CEO Amrin Awaluddin.

Azman said the value of profit declared was reasonable, meeting TH’s expectations based on the institution’s budget in addition the prevailing economic factors.

“The rate also took into consideration the factor of TH as the pilgrimage fund for future depositors,” he said.