KUALA LUMPUR: Bank Islam Malaysia Bhd's net profit rose 9.4 per cent year-on-year (YoY) to RM129.17 million in the first quarter ended Mar 31, 2024 (Q1 2024) versus RM118.09 million in the corresponding period last year.
This was driven by higher net income and lower net allowance for impairment on financing, Bank Islam said.
Group revenue was up 3.7 per cent to RM1.14 billion in the quarter under review against RM1.11 billion in Q1 2023.
The bank noted that the increase in net income was mainly due to the rise in net fund-based income, which improved by 5.4 per cent to RM528.9 million, driven by YoY growth in financing and investment securities.
This facilitated an eight basis points (bps) improvement in the net income margin (NIM) which reached 2.14 per cent for Q1 2024, compared to 2.06 per cent recorded in the same period last year.
However, the group's non-fund-based income dropped RM16.5 million or 15.6 per cent, due to lower investment income during the period under review.
As of March 31, Bank Islam's total assets stood at RM91.0 billion, spurred by the growth in financing and investment securities, offset by the reduction in cash and short term funds. Net assets per share amounted to RM3.29.
Its current and saving and transactional investment accounts remained robust, amounting to RM30.6 billion at the end of March, constituting 40.1 per cent of the total customer deposits and investment accounts.
Gross impaired financing ratio was 0.95 per cent and remained below the industry average of 1.62 per cent. Meanwhile, total capital ratio remained strong at 19.6 per cent.
Bank Islam group chief executive officer Datuk Mohd Muazzam Mohamed said the bank remains steadfast in its commitment to long-term financial stability by balancing strategic growth with prudent asset quality management.
"The group will continue prioritising fundamentals and focusing on balance sheet discipline as we face economic uncertainties.
Bank Islam expects improved earnings growth as it expands its financing volume.
NIM is forecasted to stabilise, supported by sustained efforts and the maintained overnight policy rate.