Bank Islam Achieves Better Profit Growth

Amid a challenging year for the commercial banking sector, Bank Islam achieved among the better profit growth in 2014.

It posted a profit before zakat and taxation (PBZT) of RM702.8mil in 2014, an increase of 3.8% from the previous year.

“The improved performance was mainly attributed to growth in business activities,” parent company BIMB Holdings Bhd said in announcing its results for 2014 to Bursa Malaysia.

BIMB said Bank Islam’s key performance indicators as at end-December 2014 compared favourably against the banking system as at end-December 2013. “The bank’s pre-tax return on equity was 19.9% against the banking system’s 15.2%. The pre-tax return on assets was 1.6% against the banking system’s 1.5%,” it said.

Year-on-year net financing assets grew by RM5.8bil or 24.4% to reach RM29.5bil as at end-December 2014.

Its current and savings accounts (CASA) deposits made up 38.1% of its total deposits as at end-December 2014, one of the industry’s highest. This means it raised a bigger portion of money at cheaper cost. (The banking industry’s CASA stood at 25.6%).

As at end of December 2014, customer deposits stood at RM41bil with an annual increase of RM3.8bil or 10.1%. The CASA also showed a year-in-year jump of 7.3% or RM1.1bil.

The country’s other standalone Islamic bank, Bank Muamalat’s financial year ends March 31.