Malaysia's international offshore financial centre of Labuan attracted 555 new companies last year against 494 in 2003, representing growth of 12.3 percent, the central bank said today.

This brought the total number of offshore companies operating in the centre off Borneo island to 2,701 at end-2004, Bank Negara Governor Zeti Akhtar Aziz told reporters.

She said the offshore banking industry recorded an increase in unaudited pretax profit of US$272.9 million in 2004 against US$166.8 million in 2003, due to a 34.3 percent fall in loan provisions to US$317.4 million.

The IOFC had 57 offshore banks in 2004 compared with 56 in 2003.

The number of offshore investment banks increased to 11 with the issuance of two new licences in 2004, Zeti said. They recorded an increase in pretax profit to US$9.5 million from US$1.3 million in 2003.

Total Islamic banking assets increased 13.8 percent to US$678.7 million, while total deposits increased 54.4 percent to US$304.1 million in 2004, Zeti said.

The positive growth was expected to continue in 2005 in view of the growing awareness and recognition of Labuan's stature as an international offshore financial centre in the region, she said.