Bank Islam Malaysia Berhad reported a PBZT of RM746.9 million for the financial year ended 31 December 2022, an improvement of 6.1% over the previous year, however, profit for the period slides marginally to RM491.6 million.
The Group’s net income was due to higher net fund-based income, which increased by RM247.2 million or 13.5%, primarily driven by y-o-y financing growth. However, this was offset by a lower non-fund-based income of RM126.2 million due to lower investment income and higher net loss from foreign exchange transactions amid lingering unfavourable market conditions during the year.
The Group’s overall performance translates to earnings of 22.86 sen per share and net ROE of 7.5%. The Group proposed a second interim dividend of 3.40 sen per share, bringing the total proposed annual dividend to 13.80 sen per share for a payout ratio of 60% of net profit, in line with its dividend policy.
On a quarterly basis, Bank Islam has registered a PBZT of RM187.3 million for the fourth quarter ended 31 December 2022 (4Q2022), primarily due to higher net income driven by financing growth. On a y-o-y basis, 4Q2022 PBZT marked an increase of 145.2% compared to the corresponding quarter last year (4Q2021) of RM76.4 million as a significantly lower provision was made.
