Bank Islam Malaysia Berhad (Bank Islam or the Group) closed FY2024 on a positive note, recording a net profit of RM571.1 million, reflecting a 3.3% growth from the previous year. Earnings per Share rose to 25.20 sen, while the net Return on Equity stood at 7.6%. The profit increase was driven by stronger net income and a substantial reduction in net allowance for impairment on financing, reinforcing the Group’s financial stability.
The Group’s net fund-based income expanded by 5.1% to RM2.2 billion, supported by y-o-y investment securities and financing growth. Its net income margin (NIM) improved to 2.13%, and fee and commission income increased by 11.2%. A 46.0% reduction in net allowance for impairment on financing and advances lowered financing credit cost to 0.14%, down from 0.26% in FY2023. Bank Islam’s gross impaired financing ratio remained strong at 1.06%, well below the industry benchmark of 1.44%.
In line with its commitment to shareholder value, Bank Islam declared a second interim single-tier dividend of 4.12 sen per share, bringing total dividends for the year to 15.12 sen per share. The Group’s total assets expanded to RM96.8 billion, marking a 6.4% y-o-y increase, supported by steady investment securities and financing growth. Consumer financing grew by 6.3%, and commercial financing by 6.7%, although corporate financing declined slightly, leading to an overall 3.8% y-o-y increase in gross financing to RM70.2 billion. Meanwhile, customer deposits and investment accounts saw a 6.4% y-o-y increase to RM80.9 billion, with CASATIA contributing 39.7% to total deposits.
A major highlight of 2024 was Bank Islam’s ongoing digital transformation, marked by the successful launch of BIMB Mobile and BIMB Web in November. These advanced banking platforms offer seamless, branchless banking solutions with enhanced security and usability. To date, nearly one million customers have migrated to these new platforms, solidifying the Group’s progress in digital banking.
Bank Islam Group Chief Executive Officer, Dato’ Mohd Muazzam Mohamed, highlighted the significance of digital innovation in Islamic banking. “We are actively integrating technology into our services to drive customer-centric solutions, strengthen security, and remain ahead of industry trends,” he said.
Moving into 2025, Bank Islam is set to enhance its growth by focusing on cost efficiency, business expansion, and strategic digital investments. Key areas of focus include strengthening Wealth Management, Ar-Rahnu, and bureau-de-change services, while enhancing collaboration with BIMB Investment Management Berhad and BIMB Securities Sdn Bhd. Additionally, the Group aims to invest in environmentally sustainable assets, reinforcing its commitment to responsible banking.
Sustainability remains a key strategic pillar, with Bank Islam planning to mobilize RM28 billion in sustainable financing by 2025. The Group’s initiatives are centered on supporting a low-carbon economy, fostering financial inclusion, and upholding strong governance principles.
“As we look ahead, we remain committed to innovation, sustainability, and financial prudence. Our strategic initiatives will continue to drive Bank Islam towards a future-ready, Shariah-compliant banking ecosystem,” Mohd Muazzam concluded.
