KUALA LUMPUR: Bank Islam Malaysia Bhd's net profit grew 11.5 per cent to RM118.09 million for the first quarter ended March 31, 2023 (1Q23) from RM105.92 million a year ago.
The bank said this was mainly contributed by higher net income, offset by higher net allowance for impairment on financing and advances and higher total overheads.
Its quarterly revenue surged 42.6 per cent to RM1.1 billion from RM773.97 million previously.
Earnings per share came in higher at 5.33 sen compared to 4.95 sen in 1Q22, its filing to Bursa Malaysia today showed.
Bank Islam's net income improved due to higher non-fund-based income, which surged by RM60 million or 132.4 per cent, driven by higher investment income and net gain from foreign exchange transactions.
Gross financing grew by 10.7 per cent year-on-year (YoY) to RM66.2 billion, while customer deposits and investment accounts stood at RM77.8 billion, with an increase of RM9.7 billion or 14.3 per cent.
This was mainly attributable to the healthy YoY growth of 25.9 per cent or RM6.8 billion in total current and saving accounts and transactional investment accounts (Casatia), to stand at RM33.0 billion.
This composition made a healthy level of 42.5 per cent of total customer deposits and investment accounts.
The bank's total capital ratio remained strong at 21.2 per cent.
Bank Islam group chief executive officer Mohd Muazzam Mohamed said as at the end of March 2023, the bank's total assets stood at RM92.1 billion, with a growth of 14.4 per cent, driven by YoY growth in both financing and investment securities.
He added that the bank's gross impaired financing ratio was 1.37 per cent which remains better than the industry average of 1.75 per cent.
"Our healthy capital and liquidity position reflects that our growth momentum and fundamentals remain strong," he said in a separate statement.
Bank Islam said its primary focus for 2023 was to manage its liquidity or funding cost and enhance profitability.
In addition to ongoing efforts to increase Casa and operational accounts, other initiatives are also being looked upon to preserve its net income margin.
"To fulfill the growth strategy outlined in Bank Islam's five-year business plan (LEAP25), the bank will focus on its core strengths.
"The bank continues to invest in digitalisation, enhance its mobile banking services, which have seen a yearon-year increase in user numbers and transaction volumes, and build strategic partnerships.
"Bank Islam is also committed to offering financial solutions across segments via its retail banking distribution and premier wealth banking, while group institutional banking target operating model emphasises client-centricity in developing the right products," it added.
Earlier this month, Bank Islam was recognised by the General Council for Islamic Banks and Financial Institutions for its sustainable development initiatives, including environmental, social/and governance practices, at the CIBAFI Award 2023 held in Manama, Bahrain.