Bank Islam Records Slightly Improved Net Profit of RM137.17mil in 2Q

Bank Islam Malaysia Bhd said it will navigate the economic uncertainty by prioritising fundamentals, disciplined balance sheet management and innovative solutions that set it apart in an increasingly competitive market.

"Our focus remains on growing non-fund-based income, expanding wealth management and driving financing growth," said group CEO Datuk Mohd Muazzam Mohamed in comments accompanying its results announcement.

In the second quarter ended June 30, 2024, Bank Islam recorded a net profit of RM137.17mil, which was slightly higher than RM136.14mil in the year-ago quarter.

The bank's revenue rose to RM1.15bil in 2QFY24 from RM1.12bil in 2QFY23, while earnings per share stood at 6.05 sen against 6.04 sen previously.

For the six months to June 30, 2024, the bank posted a net profit of RM266.34mil, up from RM254.23mil in 1HFY23 while revenue rose to RM2.29bil from RM2.22bil in the comparative period.

According to the group, its 1HFY24 net income increased mainly due to higher net fund-based income, which rose 5.8% to RM1.07bil on financing and investment securities growth.

The group's net income margin (NIM) improved nine basis points to 2.17% in 1HFY24 as compared to 2.08% in 1HFY23.

Meanwhile, the group's non-fund-based income decreased 14.1% due to lower investment income.

Bank Islam's total assets grew 6.4% to Rm93bil as at end-June, spurred on my growth in financing and investment securities.

Customer deposits and investment accounts increased 8.5% year-on-year to RM78.5bil.

Current, saving and transactional investment accounts (Casatia) stood at RM29.1bil at the end-June 2024, translating into a healthy Casatia composition of 37%.