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Malaysian bank posts 458pc jump in profits

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BIDDING for Bank Bumiputra Malaysia (BBMB), one of the largest prizes in Malaysia's privatisation programme, is likely to heat up following yesterday's announcement of outstanding results for the year to March.

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Pre-tax profits at the country's second largest banking group climbed 458 per cent to M$450.1 million (about HK$1.36 billion), while assets grew 32.3 per cent to $29.7 billion on March 31, according to chairman Khalid Sahan.

Pre-tax profits from the bank grew 528 per cent to $318.2 million.

The bank, set up in 1965 largely to provide aid to indigenous Malays called bumiputras, was rocked by a scandal in 1984 involving huge loans granted by its Hong Kong subsidiary, Bumiputra Malaysia Finance, to the collapsed Carrian Property Group.

The government, which has twice bailed BBMB out since the scandal, has invested $1.15 billion in the bank, now controlled by the Minister of Finance Inc, the government's investment arm.

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The performance of Bank Bumiputra, although not a listed concern, was closely monitored as it played a vital role in Malaysia's economic progress and industrialisation process, analysts said.

The bank's strong earnings performance put it back on par with MayBank, the country's largest bank with assets of $73.488 billion on June 30, they said.

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