Bank Islam Malaysia Berhad Registers Resilient 1H2025 Performance Amid Challenging Market Conditions

Strategic Insights -

Amid increasingly challenging market conditions, Bank Islam Malaysia Berhad has posted a resilient performance for the six months ended 30 June 2025 (1H2025). The Group recorded a year-on-year (y-o-y) decline of 5.9% in net profit to stand at RM253.0 million, compared to the corresponding period in 2024, due to higher total overheads and net allowance for impairment and finance cost. Despite this, the Group maintained a strong asset quality, with its gross impaired financing ratio standing at 1.05% at the end of June 2025, well below the industry average of 1.42%.

Key Takeaways:

  • The Group's total net income rose 9.9% to RM1.4 billion for 1H2025, driven by a 66.5% increase in non-fund-based income and strong growth in financing.
  • Total Assets expanded by 7.0% y-o-y to RM99.5 billion, catalysed by 6.4% y-o-y growth in gross financing and higher investments in securities.
  • Customer deposits and investment accounts grew 5.4% y-o-y to RM82.7 billion, with CASATIA composition at 35.2%.
  • The Group maintained a solid capital position with a Total Capital Ratio of 20.3% as of 30 June 2025.
  • Bank Islam is transforming to streamline operations, consolidate resources, and enhance efficiency, with a focus on improving customer service delivery.
  • The Group's future-proofing initiatives include investments in technology, infrastructure, and innovation to capture new opportunities in a fast-changing financial landscape.

Statistics:

  • Total Net Income: RM1.4 billion (9.9% y-o-y growth)
  • Non-fund-based income: RM291.9 million (66.5% y-o-y growth)
  • Gross Financing: RM72.5 billion (6.4% y-o-y growth)
  • Customer Deposits and Investment Accounts: RM82.7 billion (5.4% y-o-y growth)
  • CASATIA Composition: 35.2%
  • Total Capital Ratio: 20.3%
  • Net Impaired Financing Ratio: 1.05% (industry average: 1.42%)
  • Earnings per Share (EPS): 11.16 sen
  • Annualised net Return on Equity (ROE): 7.1%

Sources:

  • Bank Islam Malaysia Berhad
  • Press Release: Kuala Lumpur, Aug. 25