Business Economics

Khazanah profits for 2019 up to RM7.36 billion

TheMole
Written by TheMole

KUALA LUMPUR — March 2, 2020: Khazanah Nasional reported a turnaround in overall performance for 2019, with record profits from operations contributed by higher divestment gains, lower impairments and robust returns.

It achieved profit from operations of RM7.36 billion compared to a loss of RM6.27 billion in 2018.

Gains on divestments increased to RM9.9 billion compared to RM1.4 billion, while impairments were at RM4.9 billion, down from RM7.3 billion the previous year.

The fund declared a dividend of RM1.0 billion for 2019 while strengthening its financial position with expenses reduced by 28.2 per cent to RM484 million, compared to RM674 million in 2018.

This equates to 35 basis points (bps) as a percentage of assets, compared to 50bps the previous year.

“Our 2019 performance was achieved against a backdrop of uncertainties in the global landscape, which saw a prolonged Brexit process as well as the heightening of the US-China trade war.

“This was made more challenging by the continued low returns environment and generally slower economic growth. Despite these challenges, we managed to achieve significant progress in delivering on our mandate to grow Malaysia’s long-term wealth,” managing director Datuk Shahril Ridza Ridzuan said in a statement today.

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