Assets Of Financial System Increase To RM2.58 Trillion

The assets of the financial system in the country at end-2008 increased to RM2.58 trillion from RM2.476 trillion at end-2007.

The banking system, which includes Islamic banks, registered pre-tax profit of RM19.17 billion last year, up from RM17.701 billion in 2007, according to Bank Negara Malaysia (BNM) in its Financial Stability and Payment Systems Report released here today.

The 2008 figures are preliminary figures.

BNM said pre-tax profit for the commercial banks, which include finance companies and Islamic banks, increased to RM18.489 billion from RM15.655 billion previously.

The economic slowdown adversely affected the investment banks as their pre-tax profit dropped to RM681.1 million from RM2.046 billion previously.

Meanwhile, pre-tax profits of the Islamic banking system, excluding one Islamic bank that made exceptional loss, fell to RM1.810 billion from RM1.894 billion.

The report said the number of financial institutions in the banking system rose to 54 last year from 47 in 2007, mainly because of the increases in Islamic banks (to 17 from 11) and investment banks (to 15 from 14).

The number of people employed in the banking sector rose to 114,856 in 2008 from 109,641 in 2007, with the bulk of them in commercial banks (up to 99,593 from 96,146).

On the life insurance sector, the report said, the industry's total income fell to RM26.779 billion last year from RM28.440 billion in 2007, while its outgo increased to RM19.238 billion from RM14.617 billion.

It said the general insurance sector's operating profit fell to RM588.9 million in 2008 from RM1.339 billion in 2007.

Maenwhile, the family takaful income rose to RM2.834 billion from RM2.376 billion, while outgo rose to RM1.294 billion from RM1.441 billion.

The general takaful operating profit rose to RM171.6 million from RM24.5 million.

-- BERNAMA