Bank Islam's Net Profit Eases To RM126.27 Mln In 1Q 2025

KUALA LUMPUR, May 30 (Bernama) -- Bank Islam Malaysia Bhd (BIMB) posted a net profit of RM126.27 million for the first quarter ended March 31, 2025 (1Q 2025), 3.53 per cent lower compared to RM130.73 million recorded in the same period last year.

Bank Islam attributed the lower net profit to higher net allowance for impairment on financing and higher total overheads, although this was mitigated by higher net income.

However, revenue rose to RM1.23 billion from RM1.14 billion previously, it said in a filing with Bursa Malaysia.

The bank said the group’s net income rose by 9.0 per cent to RM673.5 million in 1Q 2025, on the back of a 50.3 per cent increase in non-fund-based income, which improved to RM133.6 million.

This was supported by higher fees and commission income, higher net gain from foreign exchange transactions and higher net gain from sale of financial assets at Fair Value Through Profit or Loss  (FVTPL) and Fair Value Through Other Comprehensive Income (FVOCI).

Meanwhile, total overheads increased by 3.8 per cent year-on-year (y-o-y) to RM385.2 million, mainly due to higher establishment expenses (+RM8.9 million), personnel expenses (+RM6.2 million) and marketing expenses (+RM3.8 million).

Its gross financing grew by 6.0 per cent y-o-y to RM71.8 billion, while customer deposits and investment accounts rose by 5.5 per cent y-o-y or RM4.2 billion to RM80.6 billion.

In a separate statement, group chief executive officer Datuk Mohd Muazzam Mohamed said the bank delivered a modest first-quarter performance in 2025, driven by strategic growth and a commitment to sustainability

“As a forward-looking, Shariah-compliant financial institution, we continue to evolve with customer expectations while leveraging technological advancements in Islamic finance.

“Our continued focus on responsible banking and long-term sustainable growth reinforces Bank Islam’s leadership in shaping a more inclusive, resilient, and future-ready financial ecosystem,” he said.

On prospects, he said Bank Islam’s business growth strategies for 2025 prioritise the expansion of Wealth Management, Ar-Rahnu and bureau-de-change services, while fortifying collaboration with its subsidiaries, namely, BIMB Investment Management Bhd and BIMB Securities Sdn Bhd.

Concurrently, the group will continue to pursue the acquisition of assets in green, sustainable and high-growth sectors, aligning its business objectives with its long-term sustainability agenda.

-- BERNAMA