Bank Islam Malaysia Berhad recorded a 9.0% year-on-year increase in net income to RM673.5 million for the first quarter of 2025 driven by higher non-fund-based income and steady financing growth.
The bank’s net profit stood at RM126.3 million, supported by a 50.3% surge in non-fund-based income mainly from fees, commissions, foreign exchange transactions, and gains from investment securities alongside a 2.1% increase in net fund-based income.
Gross financing rose 6% year-on-year to RM71.8 billion, with consumer financing up by 6.5% and commercial financing by 10.4%. Total assets climbed 8% to RM98.3 billion.
Customer deposits and investment accounts grew 5.5% to RM80.6 billion, with a healthy 37.2% held in current, savings, and transactional investment accounts (CASATIA). The Group’s Total Capital Ratio remained strong at 18.7%.
Despite a rise in net new impaired financing, the bank maintained sound asset quality with a gross impaired financing ratio of 1.08%, below the industry average of 1.42%.
Bank Islam Group CEO Dato’ Mohd Muazzam Mohamed said the results reflect the bank’s ongoing commitment to responsible growth and sustainable finance.
“As a forward-looking, Shariah-compliant financial institution, we continue to evolve with customer expectations while leveraging technological advancements in Islamic finance,” he added.
Among recent initiatives, Bank Islam has expanded its Ar-Rahnu services and launched the Bank Islam Gold Account-i (BiGA-i), enabling customers to invest in gold digitally. The bank also entered a strategic bancatakaful partnership with Syarikat Takaful Malaysia Keluarga Berhad in March 2025.
On the social front, RM5.7 million in targeted support was channeled to underserved communities via the bank’s Sadaqa House platform in 1Q2025.
Bank Islam remains committed to its five-year LEAP25 strategy, focusing on inclusive growth and value creation across all stakeholder groups.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
