KUALA LUMPUR: Bank Islam Malaysia Bhd
delivered a modest first-quarter performance in 2025, which underpinned by a surge in non-fund based income, although there was also an increase in the net allowance for impairment on financing and advances.
The bank reported a net profit of RM126.27mil, slightly lower than RM130.73mil in the year-ago quarter, while revenue rose to RM1.23bil from RM1.14bil in the same quarter of the previous year.
Quarterly earnings per share dipped to 5.57 sen form 5.77 sen in the comparative quarter.
According to the bank, non-fund-based income jumped 50.3% to RM133.6mil supported by higher fees and commission income, increased foreign exchange transactions income and net gains from the sale of investment securities.
Net fund-based income rose 2.1% to Rm539.8mil, driven by growth in financing and investment securities.
However, the group reported net allowance for impairment on financing and advances rose RM37.5mil to RM79.8mil in the quarter, primarily due to an increase in net new impaired financing.
The group said its asset quality remaine dstrong, with its gross impaired financing ratio standing at 1.08% as of March31, 2025, well below the industry average of 1.42%.
"As a forward-looking, Shariah-compliant financial institution, we continue to evolve with customer expectations while leveraging technological advancements in Islamic finance.
"Our continued focus on responsible banking and long-term sustainable growth reinforces Bank Islam’s leadership in shaping a more inclusive, resilient, and future- ready financial ecosystem,” said group CEO Datuk Mohd Muazzam Mohamed in a statement.
During the quarter, gross financing grew 6% year-on-year (y-o-y) to RM71.8bil, driven by a 6.5% increase in consumer financing and a 10.4% rise in commercial financing.
Customer deposits and investment accounts rose 5.5% y-o-y to RM80.6bil.
As of March 2025, current, savings and transactional investment accounts (Casatia) stood at RM30bil, representing a composition of 37.2%.
