KUALA LUMPUR, Nov 29 — Bank Islam Malaysia Bhd’s (BIMB) net profit slipped to RM101.63 million in the third quarter (Q3) ended Sept 30, 2021, from RM102.25 million in the corresponding period in 2020 due to higher tax expenses.

Its profit before zakat and taxation improved 11.3 per cent year-on-year (y-o-y) to RM152.84 million mainly due to lower net allowance for impairment on financing and advances of RM34 million compared to RM155.5 million a year earlier.

“The lower allowance for impairment on financing and advances was mainly due to modest deterioration of assets quality as a result of various efforts from the group to assist customers during these challenging times such as PEMULIH repayment assistance, targeted relief as well as giving out automatic moratorium to the affected customers,” it said in a filing with Bursa Malaysia today.

Meanwhile, revenue for the quarter fell to RM746.22 million from RM876.09 million a year ago.

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For the nine-month period ended Sept 30, 2021, BIMB’s net profit rose to RM454.67 million from RM387.74 million in the corresponding period last year, while revenue decreased to RM2.35 billion from RM2.58 billion previously.

BIMB said its profit before zakat and taxation (PBZT) for the period grew 19.3 per cent y-o-y to RM627.8 million, mainly due to a lower net allowance for impairment on financing and advances.

It said net allowance charged for impairment on financing and advances of RM79.6 million was lower by RM132.7 million than the RM212.2 million charged in the same period last year.

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“Higher pre-emptive impairment provision was made in management overlay for the same period the previous year in anticipation of worsening economic conditions due to the Covid-19 pandemic.

“The performance translates to group’s earnings per share of 17.71 sen and annualised return on equity of 9.4 per cent (after tax and zakat),” it said.

For the nine-month period, BIMB declared an interim dividend payout of RM226.9 million or 10.93 sen per share, and the dividend reinvestment plan was made applicable to the entire interim dividend.

On the group’s total assets, it grew y-o-y by 9.8 per cent to RM76.3 billion at the end of Sept 30, 2021, while net assets per share stood at RM3.13.

On its prospects, BIMB group chief executive officer Mohd Muazzam Mohamed said risks to financial stability had remained relatively well contained.

In addition, banks had made reasonable pre-emptive allowances in FY20, and credit risk has been adequately priced in by the market, he said.

“The year 2022 will be a critical year for Malaysia, not just from an economic recovery perspective but also the healing of industries, livelihood and employment, particularly to those most adversely affected by the pandemic.

“As the bank that advances prosperity for all by providing solutions that deliver value to our stakeholders, BIMB is currently embarking on its five-year business strategic plan (LEAP25). The mission is to chart the group’s future in becoming the champion Shariah environmental, social and governance total financing solution with digital banking and social finance leadership,” he added.

BERNAMA — — —