Bank Islam 3Q earnings up 41% to RM143m 

BANK Islam Malaysia Bhd’s net profit for the third quarter ended Sept 30, 2022 (3Q22), leaped 40.57% to RM142.86 million from RM101.63 million in the same period last year mainly due to higher net income offset by higher total overheads.

According to the bank’s Bursa Malaysia filing yesterday, net income increased by 22.2% mainly due to higher net fund-based income during the quarter driven by financing growth, while total overheads were higher by RM53.5 million or 18.8% over 3Q21 overheads mainly due to higher staff costs by RM40.2 million and general expenses by RM13.3 million.

Additionally, net allowance for impairment on financing and advances, financing was lower at RM24.9 million for the 3Q22, a decrease by 9.1 million or 26.7% compared to 3Q21.

Earnings per share was up at 6.63 sen from 4.08 sen previously.

Revenue for the quarter grew 25.12% to RM933.68 million from RM746.22 million a year earlier.

For the first nine-month period, Bank Islam’s net profit fell 19.52% to RM365.93 million from RM454.67 million previously. Revenue, however, grew 7.62% to RM2.53 billion from RM2.35 billion.

As part of its sustainability journey and environmental, social and corporate governance (ESG) commitment, Bank Islam is expanding its green financing portfolio and widening its exposure to new green segments such as energy efficiency, net energy metering, office automation and waste management. 

“To date, we have approved around RM2.9 billion in green financing for projects in renewable energy, sustainable waste management, public transportation and green manufacturing,” Bank Islam group CEO Mohd Muazzam Mohamed (picture) said. 

“The bank has set an aspirational target to increase its green financing portfolio to RM4 billion by 2025,” he said.

He said Bank Islam is actively pursuing climate finance by developing targeted products, including low-carbon transition financing for small and medium enterprises (SMEs) and ESG-linked financing for corporates embarking on business transformation towards low-carbon operations. — TMR / pic TMR File