KUALA LUMPUR: Tabung Haji (TH) today announced a profit distribution rate of 3.1 per cent for 2023.
TH's profit distribution rate for the fiscal year ended Dec 31, 2023, factors in a zakat payment of 2.57 percent.
The profit distribution rate is in line with estimates for a profit distribution of between 3.0 and 3.5 per cent for financial year 2023
In 2022, Tabung Haji announced a 3.1 per cent profit distribution, or a RM2.65 billion payout to its contributors.
The profit distribution for 2023 involves a payout of RM2.72 billion, which benefits over 9.15 million TH depositors, compared to the previous financial year, where the institution distributed RM2.65 billion to 8.8 million depositors.
TH has distributed some RM42.88 billion in profits since its establishment 60 years ago.
TH's financial performance for the year ending Dec 31, 2023, was contributed by its investments in Shariah-compliant fixed income instruments.
According to the Islamic financial institution, the investments generated 52 per cent of total income, while 24 percent was contributed by equity investments.
"Returns from real estate and money markets also contributed 24 per cent to total income," it added.
TH will pay RM101 million in zakatto all state Islamic councils on behalf of depositors.
"TH hopes that the zakat payments, whether directly or indirectly, contribute to the government's initiatives in eliminating hardcore poverty across the nation.
"As of now, the total accumulated zakat payment made on behalf of depositors stands at RM1.37 billion.
"The zakat amount disbursed by TH is adjusted according to the proportion of depositors' balances in each state and is directed to the respective State Islamic Councils," it said.
According to TH group managing director and chief executive officer Syed Hamadah Syed Othman, TH serves as a savings institution with the primary objective of facilitating the Hajj pilgrimage.
"TH prioritises responsible investments and adopts a diversified portfolio strategy aimed at ensuring sustainable and secure earnings potential.
"Profit distributions to depositors are made annually based on performance and financial position after being audited by the National Audit Department.
"TH also constantly strives to improve services by implementing reforms to add value for depositors' benefit," he stated.
The announcement of the 2023 profit distribution and zakat payment was made by the Minister in the Prime Minister's Department (Religious Affairs), the Honourable Senator Datuk Dr. Mohd Na'im Mokhtar, at a press conference at TH today.