Bank Islam Malaysia Berhad recorded a net profit of RM266.3 million for the six months ended 30 June 2024 (1H2024), an increase of 4.8% over the corresponding period in 2023. This performance translated into improved annualised net Return on Equity (ROE) of 7.4% and Earnings per Share (EPS) of 11.75 sen against 1H2023.
The increase in net profit was driven by higher net income and lower net allowance for impairment on financing, offset by higher total overheads. The Group's net income increased 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 (NIM) has also improved nine (9) basis points (bps) to 2.17% for 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.
Net allowance for impairment on financing and advances decreased by 37.3% to RM77.5 million, and the financing credit cost ratio was 0.23% compared to 0.38% recorded at 1H2023. As of 30 June 2024, the gross impaired financing ratio was 0.92%, remaining below the industry average of 1.60%.Total assets grew by 6.4% y-o-y to RM93.0 billion as of 30 June 2024, spurred by the growth in financing and investment securities. Net assets per share registered higher at RM3.35 compared to 1H2023.
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.
Customer deposits and investment accounts increased by 8.5% y-o-y to RM78.5 billion. Current, saving and transactional investment accounts (CASATIA) stood at RM29.1 billion at the end of June 2024, translating into a healthy CASATIA composition of 37.0%.
Total Capital Ratio remained strong at 19.4% as of 30 June 2024. Bank Islam Group Chief Executive Officer Dato' Mohd Muazzam Mohamed reaffirmed the Group's unwavering commitment to long-term financial stability through balanced strategic growth and prudent asset management.
