Bank Islam Records Better Performance In Q1, Net Profit Up 9.4%

Bank Islam Malaysia Berhad achieved a net profit of RM129.2 million for the three months ended 31 March 2024 indicating an improvement of 9.4% compared to the corresponding period in 2023. Total revenue also saw an uptick coming in at RM1.144 billion versus RM1.1 billion registered in the previous year’s first quarter.

The group said the better performance was due to its resilience and capability in navigating evolving market dynamics. The performance also translates into EPS of 5.70 sen and an annualised net ROE of 7.7%

The banking group said the increase in net profit was primarily driven by higher net income and lower net allowance for impairment on financing. The increase in net income was mainly due to the rise in net fund-based income, which improved by 5.4% to RM528.9 million, driven by year-on-year (y-o-y) growth in financing and investment securities. The increase facilitated an 8 basis points (bps) improvement in the net income margin (NIM), reaching 2.14% for 1Q2024, compared to 2.06% recorded in 1Q2023. However, the Group’s non-fund-based income decreased by RM16.5 million or 15.6%, stemming from lower investment income during the period under review.

Net allowance for impairment on financing and advances improved by 31.8% to RM42.3 million compared to the same period in 1Q2023. Total overheads for 1Q2024 increased 4.1% to RM371.3 million compared to 1Q2023 as the Group continues to invest in human capital, digital, and technology initiatives.

Bank Islam anticipates improved earnings growth as it expands its financing volume. NIM is forecasted to stabilise, supported by sustained efforts and the maintained OPR. Central to the Bank’s strategy is the meticulous management of NIM, focusing on rebalancing the funding composition. Both retail and non-retail portfolios are poised to propel financing growth for the year

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