Bank Islam recorded a net profit of RM396.8 million in the first nine months

Bank Islam Malaysia Bhd (Bank Islam) reported a net profit of RM396.8 million for the nine-month period ending September 30, 2024 (9M24), which represents a 0.5% increase from the same period in 2023.

We primarily attributed the profit to an increase in net income and a decrease in the net impairment provision on financing.

The bank said in a statement today that a 4.9 percent increase in net fund-based income, or RM1.6 billion, accounted for the majority of the group’s net income growth. Year-on-year (y-o-y) growth in securities investments and financing bolstered this increase.

“Consequently, the net income margin (NIM) increased to 2.15 percent for 9M24, as opposed to 2.11 percent in 9M2023. Furthermore, during the period under review, the group experienced a 10.8 percent year-over-year increase in fees and commissions.

Nevertheless, the total non-fund-based income experienced a 12.4% year-over-year decline as a result of a decrease in net gain from foreign exchange transactions and a decrease in investment income.

“The group’s net provision for impaired financing and advances decreased by 29.9 percent to RM115.5 million.” It stated that this figure “reflects the improvement in credit financing costs to 0.23 percent compared to 0.33 percent recorded in 9M2023.”

The group’s robust asset quality was evident in the gross impaired financing ratio, which stood at 1.02 percent as of September 30, 2024, significantly lower than the industry average of 1.54 percent.

The group’s total assets as of September 30, 2024, were RM98.3 billion, a 6.5% year-over-year increase primarily due to the expansion of securities investments and financing.

Datuk Mohd Muazzam Mohamed, the Chief Executive Officer of Bank Islam Group, stated that the financial services sector is flourishing due to technological advancements and consumer demands.

“These investments are essential to ensure that we are in accordance with industry trends and set new standards in Islamic banking, given our expenditures.”

The newly launched BIMB Mobile mobile application and BIMB Web Internet banking platform are among the key outcomes of these initiatives, which include simplified digital workflows and improved banking features. These improvements are based on consumer feedback regarding usability, with an emphasis on inclusivity, accessibility, and convenience.

“Moreover, the most recent technology is employed to protect customers from fraudulent activities, improve security and risk management, and foster sustainable business growth,” he stated.

He further stated that this strategic emphasis on technology is indicative of the organization’s dedication to cultivating enduring partnerships with stakeholders and maintaining a competitive edge.

“By prioritizing digital transformation, Bank Islam is building a strong ecosystem that benefits customers, employees, and society,” according to him.