Bank Islam Malaysia Berhad closed the financial year ended December 2025 (FY2025) with a net profit of RM557.2 million, as the Group surpassed key strategic targets under its LEAP25 roadmap.
Although net profit was marginally 2.4% lower year-on-year due to higher overheads and increased impairment allowances, the bank recorded solid operational growth across core segments.
Total Assets Exceed RM100 Billion Target
Bank Islam’s total assets expanded 7.6% year-on-year to RM104.1 billion, exceeding its RM100 billion LEAP25 target.
The growth was driven by stronger financing activities and higher investment securities.
Gross financing rose 6.4% to RM74.7 billion, supported by steady performance in both Retail Banking and Institutional Banking . Meanwhile, customer deposits and investment accounts increased 4.2% to RM84.3 billion, reflecting continued customer confidence.
Income Growth Supported by Non-Fund-Based Activities
Total net income climbed 7.8% to RM2.8 billion . The improvement was largely driven by a 60.5% surge in non-fund-based income, which reached RM638.4 million.
Contributions came from gains on the sale of investment securities, property disposals, foreign exchange transactions, and stronger fee and commission income.
Strong Asset Quality and Capital Position
Bank Islam maintained healthy asset quality, with a gross impaired financing ratio of 0.97%, outperforming the industry average of 1.37% . The Group’s Total Capital Ratio stood at 18.3%, reflecting a solid capital buffer.
Earnings per share (EPS) came in at 24.59 sen, with a net return on equity (ROE) of 7.1% .
Dividend and Sustainable Finance Milestones
The Board declared an all-cash second interim dividend of 4.45 sen per ordinary share, bringing total annual dividends to 14.45 sen per share, amounting to RM327.5 million distributed to shareholders.
In addition to financial growth, Bank Islam surpassed its sustainable finance mobilisation target, reaching RM31.3 billion, above its RM28.0 billion goal.
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.
