Bank Islam Malaysia Berhad (Bank Islam or the Group) has announced a solid financial performance for the year ending 31 December 2024 (FY2024), recording a net profit of RM571.1 million. This marks an improvement of 3.3% compared to the previous year, with Earnings per Share rising to 25.20 sen and a net Return on Equity of 7.6%. The positive growth was primarily driven by an increase in net income and a reduction in net allowance for impairment on financing.
The Group’s net fund-based income saw a 5.1% increase, reaching RM2.2 billion, supported by year-on-year (y-o-y) growth in investment securities and financing. The net income margin (NIM) improved to 2.13%, while fee and commission income experienced an 11.2% y-o-y increase. Additionally, the Group’s net allowance for impairment on financing and advances decreased significantly by 46.0% to RM94.6 million, resulting in an improved financing credit cost of 0.14%, compared to 0.26% in FY2023. The gross impaired financing ratio stood at a low 1.06%, well below the industry average of 1.44%, demonstrating the Group’s strong asset quality.
Bank Islam’s Board of Directors has 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 reached RM96.8 billion, reflecting a 6.4% y-o-y growth, driven by increases in investment securities and financing. Consumer and commercial financing segments saw notable increases of 6.3% and 6.7% y-o-y, respectively, although corporate financing recorded a decline, leading to total gross financing growth of 3.8% to RM70.2 billion. Meanwhile, customer deposits and investment accounts increased by 6.4% y-o-y to RM80.9 billion, with Current, Savings, and Transactional Investment Accounts (CASATIA) maintaining a healthy composition of 39.7%.
Bank Islam continues to invest in future-proofing its operations by prioritizing digital transformation and sustainable value creation. The Group is focused on leveraging cutting-edge technology to enhance customer experience, improve operational efficiency, and strengthen cybersecurity resilience. Key efforts include integrating advanced data analytics, resilient systems, and agile frameworks to drive innovation and business growth.
A major milestone in the Group’s digital transformation journey was the launch of BIMB Mobile and BIMB Web in November 2024. These platforms offer a seamless branchless banking experience with enhanced functionality and security features. Since their introduction, nearly one million customers have migrated to the new platform out of the Bank’s 1.9 million app users, marking a significant step toward greater digital adoption.
Bank Islam Group Chief Executive Officer, Dato’ Mohd Muazzam Mohamed, highlighted the rapid transformation of the Islamic banking and financial services industry, driven by evolving customer expectations and technological advancements. “Technology serves as a crucial catalyst for growth, allowing us to extend our reach and deliver customer-centric solutions. Our strategic digital investments aim to keep us ahead of industry trends, strengthen cybersecurity measures, and set new benchmarks in Islamic banking,” he said.
Looking ahead to 2025, Bank Islam remains committed to accelerating growth despite global market uncertainties. The Group aims to stabilize its cost-to-income ratio through disciplined cost management and optimized resource allocation. Expansion strategies will focus on growing Wealth Management, Ar-Rahnu, and bureau-de-change services, while fostering stronger collaboration with its subsidiaries, BIMB Investment Management Berhad and BIMB Securities Sdn Bhd. Additionally, the Group will pursue asset acquisitions in green, sustainable, and high-growth sectors.
Bank Islam continues to embed sustainability across its operations, emphasizing financial inclusion, responsible banking practices, and strong governance. The Group is dedicated to supporting the transition to a low-carbon economy, with a commitment to mobilizing RM28 billion in sustainable finance by the end of 2025. This initiative aligns with Bank Islam’s five sustainability commitments and aims to increase Shariah-compliant and environmentally responsible assets.
Expressing gratitude for the trust and support of shareholders, partners, and customers, Mohd Muazzam reiterated the Group’s commitment to strengthening resilience and driving strategic growth. “As we navigate an increasingly challenging landscape, we remain proactive in sustaining an inclusive and responsible financial ecosystem,” he concluded.
