Bank Islam Posts Marginal Rise In 2Q Net Profit To RM137.16 Mln

KUALA LUMPUR, Aug 26 (Bernama) -- Bank Islam Malaysia Bhd posted a slightly higher net profit of RM137.16 million in the second quarter ended June 30, 2024 (2Q 2024) compared to RM136.13 million a year ago. 

Revenue in the quarter increased to RM1.14 billion against RM1.12 billion previously, it said in a filing to Bursa Malaysia today.

For the first half-year ended June 30, 2024 (1H 2024), Bank Islam recorded a higher net profit of RM266.33 million from RM254.22 million in 1H 2023, driven by higher net income and a lower net allowance for impairment on financing, offset by higher total overheads.

“The performance translated to earnings per share of 11.75 sen (1H 2024) and an improved annualised return on equity (ROE) of 7.4 per cent,” the bank said.

In a separate statement, Bank Islam said its net income increased mainly due to a 5.8 per cent rise in net fund-based income to RM1.07 billion, driven by year-on-year (y-o-y) growth in financing and investment securities. Net income margin improved by nine basis points to 2.17 per cent for 1H 2024 compared to 2.08 per cent in 1H 2023.

“However, non-fund-based income fell by RM28.9 million, or 14.1 per cent, mainly due to lower investment income,” it said. 

The bank’s net allowance for impairment on financing and advances decreased by 37.3 per cent to RM77.5 million, while the financing credit cost ratio was 0.23 per cent versus 0.38 per cent in 1H 2023. The gross impaired financing ratio stood at 0.92 per cent as of June 30, 2024, below the industry average of 1.60 per cent.

“The bank’s total assets grew by 6.4 per cent y-o-y to RM93.0 billion as of June 30, 2024, driven by increases in financing and investment securities, while net assets per share rose to RM3.35 from 1H 2023.

“Growth in gross financing was driven by a 4.4 per cent y-o-y increase in consumer financing and 7.6 per cent in commercial financing. Total gross financing increased by 2.7 per cent y-o-y to RM68.1 billion despite a decline in corporate financing.

“Customer deposits and investment accounts increased by 8.5 per cent year-on-year to RM78.5 billion. Current, saving, and transactional investment accounts (CASATIA) stood at RM29.1 billion at end-June 2024, resulting in a healthy CASATIA composition of 37.0 per cent,” the bank said.

On outlook, group chief executive officer Datuk Mohd Muazzam Mohamed said the bank’s focus remains on growing non-fund-based income, expanding wealth management, and driving financing growth.

“We will continue to play a vital role in supporting the economy by empowering individuals, businesses, and communities through efforts that drive economic prosperity and financial well-being,” he said.

-- BERNAMA