Malaysia's second largest financial group Bumiputra-Commerce Holdings on Tuesday posted a 12.6 percent increase in its net profit for 2005 of RM826.82 million (US$222.56 million).

It attributed the year-on-year improvement to higher income at its Bumiputra-Commerce Bank (BCB) group and CIMB Berhad group.

An improvement in service charges and loan-related fees and higher revenue from the major segments of the investment banking business saw non-interest income rise to RM1.71 billion from RM1.44 billion, it said.

The group also enjoyed higher commission income, some non-recurring gains at BCB group and higher gross premiums from the general insurance business, it said in a statement to the stock exchange with its results.

Major contributors

The company said major contributors to group pretax profit were BCB Group, with RM548.76 million or 42 percent of group pretax profit, CIMB Group with RM454.08 million or 35 percent, and Bank Niaga Group with RM289.25 million or 22 percent.

In its 2006 outlook, the group said it expected higher investment banking activities and treasury income in 2006.

It said the intensified recovery efforts would be the key drivers of earnings growth as the rebuilding of retail and business banking continued.