KUALA LUMPUR: Bank Islam Malaysia Bhd
’s net profit fell to RM115mil for the three months ended March 31, 2026, down 8.9% from the corresponding period last year.
The bank, in a statement, said the decline was mainly attributable to higher overheads, increased finance costs and lower net income, partially offset by lower net allowance for impairment on financing.
This translates into earnings per share of 5.08 sen and an annualised ROE of 6.0% for the group.
Quarterly revenue rose to RM1.25 bil from RM1.23 bil a year earlier.
Bank Islam recorded net income of RM666.1mil in 1Q26, slightly lower year-on-year due mainly to an 18.1% decline in non-fund-based income amid lower investment, foreign exchange, fee and commission income, as well as the absence of a one-off property disposal gain recorded in 1Q25.
This was partially offset by a 3.1% increase in net fund-based income, driven by higher income from investment securities.
The bank said total overheads in 1Q26 rose 7.7% to RM414.9mil due to investments in talent and technology.
Net allowance for impairment on financing and advances fell 32% to RM54.2mil on higher recoveries, improving financing credit cost to 0.29%.
As at end-March 2026, the gross impaired financing ratio stood at 1.02%, below the industry average of 1.40%, while total assets grew 8.7% year-on-year (y-o-y) to RM106.8bil. Net assets per share stood at RM3.53.
Bank Islam’s gross financing increased 5.9% yo-y to RM76.1bil, supported by growth in both group retail banking and group institutional banking, which expanded 5.5% and 7.1%, respectively.
Financing growth was supported by higher customer deposits and investment accounts, which rose 9.2% year-on-year to RM88.1bil.
CASATIA (current accounts, savings accounts and transactional investment accounts) stood at RM30.3bil, representing 34.4% of total deposits and investment accounts, while the CET1 and total capital ratios remained strong at 13.6% and 18.4%, respectively, as at end-March 2026.
Chief executive officer Datin Paduka Teh Maimunah Raja Abdul Aziz said the group remains firmly focused on strengthening its position through clear strategic priorities.
These include accelerating digital adoption as Bank Islam advances towards a more mature Shariah-based digital ecosystem to deliver simpler, more accessible and more relevant solutions for customers.
“We are also advancing a broader agenda to strengthen long-term resilience and competitiveness by expanding and diversifying revenue streams, reinforcing our institutional banking franchise, and improving efficiency through disciplined cost recalibration and a scalable group-wide technology architecture.
“We are encouraged by the strong openness and readiness across the organisation to build a stronger, more forward-looking Group, firmly grounded in Shariah values. While change is a journey and will take time, we are confident the foundations are in place, and the path ahead is clear. With this shared resolve, we are optimistic about what we can achieve together,” she said.
