KUALA LUMPUR (Aug 26): Bank Islam Malaysia Bhd (KL:BIMB), Malaysia's largest full-fledged Islamic bank, announced on Monday that it made a net profit of RM137.17 million for its second quarter ended June 30, 2024, little changed from the RM136.14 million it made in the same quarter last year.
The flattish net profit was achieved as revenue rose to RM1.15 billion from RM1.12 billion, its bourse filing showed. No dividend was declared for the quarter under review.
The banking group made a net profit of RM266.34 million for the first half of FY2024, up 4.76% from RM254.23 million in the corresponding first half of FY2023, as revenue climbed to RM2.29 billion from RM2.22 billion.
The stronger first half earnings came amid higher net income and lower net allowance for impairment on financing, which was partly offset by higher total overheads.
Bank Islam said its net income rose mainly due to higher net fund-based income, which improved by 5.8% to RM1.07 billion, driven by year-on-year (y-o-y) financing and investment securities growth. Net income margin also improved nine basis points to 2.17% for the first half of 2024 (1H2024), compared to 2.08% recorded in 1H2023. "However, the group’s non-fund-based income has decreased by RM28.9 million or 14.1%, mainly due to lower investment income," it said in a statement.
Its net allowance for impairment on financing and advances, meanwhile, dropped 37.3% to RM77.5 million, while its financing credit cost ratio was 0.23% compared to 0.38% recorded at 1H2023. As of end-June this year, its gross impaired financing ratio was 0.92%, remaining below the industry average of 1.60%.
Bank Islam's total assets grew 6.4% y-o-y to RM93.0 billion, spurred by growth in financing and investment securities. Net assets per share was higher at RM3.35 compared to 1HFY2023.
Growth in gross financing was driven by a y-o-y increase of 4.4% in consumer financing and 7.6% in commercial financing. However, a decline in corporate financing has resulted in total gross financing registering at 2.7% y-o-y to RM68.1 billion.
Bank Islam's customer deposits and investment accounts also increased by 8.5% y-o-y to RM78.5 billion. Current, saving and transactional investment accounts (CASATIA) stood at RM29.1 billion, translating into a CASATIA composition of 37.0%. Its total capital ratio, meanwhile, stood at 19.4% as of June 30, 2024.
Looking ahead, Bank Islam group chief executive officer Datuk Mohd Muazzam Mohamed said the group will prioritise fundamentals, disciplined balance sheet management and innovative solutions to navigate economic uncertainties.
"Our focus remains on growing non-fund-based income, expanding wealth management and driving financing growth,” he said, adding the bank's focus is on growing CASATIA, leveraging strategic partnerships and advancing cashless and online banking, particularly within the retail and small and medium enterprise segments.
At the market noon break on Monday, shares in Bank Islam were unchanged at RM2.75, giving it a market capitalisation of RM6.23 billion.
Source: TheEdge - 27 Aug 2024
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BIMBCreated by edgeinvest | Aug 27, 2024
Created by edgeinvest | Aug 27, 2024
Created by edgeinvest | Aug 27, 2024
Created by edgeinvest | Aug 27, 2024
Created by edgeinvest | Aug 27, 2024