Bank Islam Malaysia Berhad PBTZ for the first quarter ended 31 March 2022 (1Q2022) increased by 108.5% to RM159.3 million compared to RM76.4 million in the preceding fourth quarter ended 31 December 2021.
The significant growth was primarily contributed by a lower net allowance charged for impairment on financing and other financial assets and lower overhead expenses, partially offset by lower non-fund-based income. BIMB has seen a recovery in
operational performance as the economy gathers its upward momentum. These were driven by discipline in cost optimisation efforts and lower provisions during 1Q2022 compared to 4Q2021
For 1Q2022, the net allowance charged for impairment on financing and other financial assets was lower by RM66.5 million from 4Q2021 to arrive at RM45.4 million. Total overhead expenses for 1Q2022 declined by RM58.5 million or 16.6% to RM293.7 million compared to RM352.2 million in 4Q2021.
On a positive note, despite the decline, the Group’s total assets grew by 11.2% year-on-year to stand at RM80.5 billion, while net assets per share stood at RM3.09. In light of the gradual normalisation of domestic economic activities following higher vaccination rates and more positive market sentiment, the Group also saw an increase of 6.7% y-o-y in gross financing to RM59.8 billion.
In comparison, customer deposits and investment accounts showed a y-o-y strengthening of 10.8% or RM6.6 billion, at RM68.0 billion by the end of March 2022. Total current, savings, and transactional investment account composition are healthy at 38.6% of total customer deposits and investment accounts, compared favourably against the industry’s 32.6%. As of 31 March 2022, the gross impaired financing ratio was 1.02%. The numbers remained better than the industry average of 1.54%.
The improved performance for 1Q2022 translates to the Group’s earnings per share (EPS) of 4.95 sen and annualised net Return on Equity (ROE) of 6.4%. The Group’s Total Capital Ratio remained strong at 19.5% and in a solid position to provide
ample buffer for possible loss absorption and drive business growth.
Bank Islam CEO Mohd Muazzam said, “Although the reopening of regional economies led to a pickup in financing growth and reduced impairment charges, market weaknesses seen previously have mitigated these positive impacts. However, the Group remains cautious when looking at the surrounding economic volatility, including disrupted trade growth, soaring commodity prices, and the evolving geopolitical situation.”
