KUALA LUMPUR: Bank Islam Malaysia Bhd
posted a higher net profit of RM571.1 million in the financial year that ended Dec 31, 2024 (FY2024), marking a 3.3 per cent increase from RM553.05 million in FY2023.
This was driven by higher net income and lower net allowance for impairment on financing, although offset by higher total overheads.
Revenue rose by 3.8 per cent to RM4.70 billion from RM4.53 billion previously.
"The performance translated to the group’s earnings per share of 25.20 sen and net return on equity (ROE) of 7.6 per cent,” the bank said in a filing with Bursa Malaysia.
Bank Islam attributed the increase in the group’s net income to a 5.1 per cent rise in net fund-based income, which grew to RM2.2 billion, driven by investment securities and financing growth.
However, the bank said this was partially offset by a 2.2 per cent decline in non-fund-based income, which fell to RM397.7 million due to lower net gains from foreign exchange transactions, though mitigated by higher fees and commission income.
The group also shared that its total assets grew by 6.4 per cent to RM96.8 billion as of Dec 31, 2024, supported by growth in investment securities and financing with net assets per share stood at RM3.38.
Additionally, the bank noted that its gross financing grew by 3.8 per cent to RM70.2 billion, while customer deposits and investment accounts increased by RM4.8 billion, or 6.4 per cent, to RM80.9 billion.
As of Dec 31, 2024, current and saving accounts and transactional investment accounts (CASATIA) stood at RM32.1 billion, translating into a healthy level of 39.7 per cent of total customer deposits and investment accounts.
Meanwhile, for the fourth quarter 2024 (4Q FY2024), Bank Islam's net profit rose 9.1 per cent to RM172.64 million from RM158.28 million in the same quarter of the previous year, while revenue improved 6.3 per cent to RM1.24 billion versus RM1.17 billion previously.
"The group's retail banking segment recorded a net income of RM453.9 million in 4Q FY2024, up 22.7 per cent compared to 4Q FY2023, driven by higher net fund-based and non-fund-based income.
"For the group's institutional banking segment, net income increased by 16.5 per cent to RM240.3 million in 4Q FY2024, also supported by higher net fund-based and non-fund-based income," it said.
The board of directors has declared a second interim single-tier dividend of 4.12 sen per share, bringing the total annual dividend to 15.12 sen per share.
Looking ahead, Bank Islam remains committed to integrating sustainability into its operations and driving meaningful change while ensuring long-term growth.
"The focus includes supporting a responsible transition to a low-carbon economy, promoting financial inclusion within communities, and strengthening governance practices, aligning with our five sustainability commitments.
"Bank Islam anticipates mobilising RM28 billion in sustainable finance by the end of 2025, driving growth in Shariah-compliant and environmentally and socially responsible assets,” it added. - Bernama
