Bank Islam Malaysia Berhad (Bank Islam or the Group) has demonstrated financial resilience in its fiscal year ending 31 December 2024 (FY2024), achieving a net profit of RM571.1 million, a 3.3% increase from the previous year. The Group’s Earnings per Share improved to 25.20 sen, while the net Return on Equity stood at 7.6%. This steady growth was attributed to a rise in net income and a significant reduction in net allowance for impairment on financing.
The Group’s net fund-based income grew by 5.1% to RM2.2 billion, reflecting positive year-on-year (y-o-y) trends in investment securities and financing. Its net income margin (NIM) increased to 2.13%, while fee and commission income saw an 11.2% rise. A notable highlight was the 46.0% decline in net allowance for impairment on financing and advances, reducing financing credit cost to 0.14% compared to 0.26% in FY2023. The gross impaired financing ratio remained at 1.06%, well below the industry average of 1.44%, demonstrating strong asset quality.
Bank Islam declared a second interim single-tier dividend of 4.12 sen per share, bringing the total annual dividend to 15.12 sen per share. The Group’s total assets increased by 6.4% y-o-y to RM96.8 billion, supported by higher investment securities and financing. Gross financing expanded by 3.8% y-o-y to RM70.2 billion, with consumer financing growing by 6.3% and commercial financing by 6.7%, although corporate financing experienced a decline. Customer deposits and investment accounts grew by 6.4% y-o-y to RM80.9 billion, with CASATIA making up 39.7% of total deposits.
A major milestone in Bank Islam’s digital transformation was the introduction of BIMB Mobile and BIMB Web in November 2024, revolutionizing the customer banking experience with enhanced security, functionality, and convenience. To date, nearly one million users have transitioned to the new digital platforms, marking a pivotal step in the Group’s technological advancement.
Bank Islam Group Chief Executive Officer, Dato’ Mohd Muazzam Mohamed, emphasized the importance of embracing technology in Islamic banking. “The financial industry is evolving rapidly, and we are committed to leveraging digital solutions to enhance our services, improve security, and expand financial inclusion,” he stated.
In 2025, Bank Islam aims to accelerate growth by focusing on cost efficiency and strategic expansion. The Group’s key priorities include strengthening its Wealth Management, Ar-Rahnu, and bureau-de-change services, while enhancing synergies with subsidiaries such as BIMB Investment Management Berhad and BIMB Securities Sdn Bhd. The Group also plans to invest in sustainable assets, aligning with its responsible banking vision.
Sustainability remains at the forefront of Bank Islam’s strategy, with the Group targeting RM28 billion in sustainable financing by 2025. By embedding ESG principles into its operations, Bank Islam aims to foster an inclusive financial ecosystem while contributing to a low-carbon economy.
Mohd Muazzam expressed gratitude to the Bank’s stakeholders, emphasizing their role in its continued success. “We remain dedicated to financial innovation and sustainability while ensuring our services remain customer-centric and resilient,” he concluded.
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